Hierarchy of Effects Model – 1. A concept related to the manner in which advertising supposedly works; it is based on the premise that advertising moves individuals systematically through a series of psychological stages such as awareness, interest, desire, conviction and action. 2. An early model that depicted consumer purchasing as a series of stages including awareness, knowledge, liking, preference, conviction and purchase.
Hierarchy of merchandising Information – The strategic placement of in store messages that lead the customers through the shopping and buying process beginning with the customers entering the store and ending with them looking at specific merchandise.
High Pressure Selling – A selling approach in which a salesperson attempts to control the sales interaction and pressure the customer to make a purchase.
Hired Hand – A salesperson who receives relatively little support or latitude from his or her sales manager. Hired hands tend to perform basically those tasks that are enumerated in the job description, as their managers perceive them as being unable or unwilling to take on additional responsibilities. Hired hands are the opposite of cadre salespeople.
Hit Rate – The percentage of the desired number of outcomes received by a salesperson relative to the total activity level. For example, it is the number of sales as a percentage of the number of calls. It is also called batting average and conversion rate.
Home Improvement Center – A store category specialist combining the traditional hardware store and lumber yard.
Homemade Diversification Theorem – A theorem that states that (in the absence of synergy) diversification by a firm is not valuable to shareholders because they can diversify their own portfolios more cheaply by purchasing shares of stocks in the market.
Homeostasis – A state of physiological balance within the individual. For example, lack of water leads to the uncomfortable sensation of thirst. The individual seeks products, such as softdrinks, that reduce the ensuing tension to return to a state of physiological balance or homeostasis.
Horizontal Buy – A purchase that is made from a direct competitor. For example, a west coast chemical company may buy a chemical compound from an east coast competitor because of a geographic supply and/or demand imbalance.
Horizontal Competition – The rivalry to gain customer preference among entities at the same level, such as competition among competing wholesalers or competing retailers.
Horizontal Cooperative Advertising – An advertising partnership in which several retailers share the cost of a promotion.
Horizontal Integration – 1. (environments definition) The expansion of a business by acquiring or developing businesses engaged in the same stage of marketing or distribution. The most common approach is to buy out competitors. It is also known as horizontal expansion. 2. (channels of distribution definition) The combination of two or more separate enterprises at the same stage in the channel through ownership, including mergers or acquisitions.
Horizontal Merger – The joining together or combination of companies in the same industry. The merger may be deemed illegal if it tends to reduce competition substantially.
Horizontal Price-Fixing – A conspiracy among competitors at the same level in the channel to set prices for a product.
Horizontal Structure of the Sales Organization – A sales organization may incorporate an internal company sales force is used, alternative approaches to sales organization include: 1) geographical information; 2) organization by type of product; 3) organization by type of customer; and 4) organization by selling function.
House Account -An account, usually large, not assigned to a field salesperson, but handled directly by executives or home-office personnel.
House Agency – An advertising agency that is owned and operated by an advertiser. It is also called an in-house agency.
House brand – A private band, usually associated with retailers.
House Publication – An internally developed or produced magazine or brochure designed to communicate the views of the organization to a selected audience without outside editorial restraints.
House-to-House Salesperson – A salesperson who is primarily engaged in making sales direct to ultimate consumers in their homes.
Human Ecology – The application of the concepts of plant and animal ecology to human collective life to seek knowledge about the structure of social systems and the way in which structures develop, paying attention to spatial configurations. It is the human population’s adaptation to the natural environment.
Hypermarket – An usually large, limited service combination discount store, supermarket, and warehouse under a single roof. Typically it sells both food and nonfood items at 10 to 15 percent below normal retail prices and stacks much reserve stock merchandise in the sales area. The hypermarket is an innovation of European Origin.
Hypothesis – A statement that specifies how two or more measurable variables are related.
Id – The part of personality, according to Freudian theory, that reflects the basic physiological and sexual drives (libido) of an individual demanding immediate gratification.
Idea Generation – The stage of the new product development cycle in which ideas are sought for new products. These ideas may be created in-house or sought from outsiders. This stage is often called concept generation rather than idea generation, because the new product is but a concept at this time. The activity of generation often follows some stated or implied strategic focus, and it precedes the concept evaluation stage.
Ideal Self Concept – The knowledge, attitudes, and perceptions people have about the self they would be like if they were perfect or ideal.
Image – The consumer perception of a product, institution, brand, business, or person that may or may not correspond with “reality” or “actuality.” For marketing purposes the “image of what is” may be more important than “what actually is.”
Imitative Strategy – An imitative strategy relies on the designs of other companies in creating its designs. The imitative company also may base its accompanying product marketing strategy on the strategy of the market leader or pioneer. Imitative strategies frequently are used in the fashion goods, furniture, entertainment, and food product industries.
Impact Evaluation – In social marketing, the evaluation of program outcomes in terms of original objectives. This also is known as outcome evaluation and summative evaluation.
Imperfect Competition – 1. (economic definition) A market situation in which many sellers,each of whom has relatively small market share, compete for consumer patronage. The term originated with English economist Loan Robinson in 1930s. 2. (environments definition) The market conditions in which firms have some control, but not necessarily absolute control, but not necessarily absolute control, over price, by such techniques as differentiating products and limiting supply. Monopoly, Oligopoly, and monopolistic competition are examples of imperfect competition.