Label – The information attached to or on a product for the purpose of naming it and describing its use, its danger, its ingredients, its manufacturer, and the like. A label is usually thought of as printed material, but labeling in the broader sense has been ruled to include spoken information and separates promotional pieces, if they serve the information purpose and are closely allied to the product.
Labor Intensive – A product or an industry in which labor requirements are large relative to requirements for capital goods.
Laboratory Experiment – A research investigation in which investigator create a situation with exact conditions so as to control some variables and manipulate others.
Laddering – A technique to discover the associations consumers have between specified product attributes and more general end states or consequences.
Laggards – The fifth, and the last, group of users to adopt an innovation.
Laissez Faire Leadership – A leadership style wherein sales managers supervise their sales personnel minimally and thus have a low degree of active involvement with them. Using this sales management leadership style usually requires sales personnel to resort to their own devices to execute their job tasks.
Landed Cost Price – The quoted or invoiced price of a commodity, plus any inbound transportation charges.
Latent Conflict – The existence of antecedent conditions of other states of conflict.
Launch Control – The process by which a management plans for and supervises the introduction of a new product; the product’s progress is monitored against preestablished norms, variances are detected, and corrections made such that the original goals set for the product are achieved.
Law of Comparative Advantage – This law states that a country tends to export those economic goods in the production of which it has a comparative advantage and to import those economic goods in the production of which it has comparative disadvantage. If a country has no comparative advantage, then it should tend to produce those products for which it has the least comparative disadvantage.
Law of Demand – 1. (popular definition) The law that, other things being equal, consumers will buy more of a product at a low price than at a high price. 2. (economic definition) the law that, under the same conditions of demand, the amount of product taken by a market varies inversely with its price.
Law of Diminishing Marginal Utility – A situation in which consumption of an additional unit of a good adds less to total satisfaction than the preceding unit.
Law of Diminishing Return – After a certain point has been reached, each successive application of a factor of production will add less to total output than before.
Law of Effect – A technical term from a learning theory in psychology often credited to Thorndike. Of the several responses made to the same situation, that which is accompanied or closely followed by satisfaction, other things being equal, will more likely be repeated, and the connections learned. Those responses that are followed by punishment will be extinguished. For example, the consumer’s probability of repeating purchase of a brand would increase if he/she were satisfied with the purchase of a brand would increase if he/she were dissatisfied. However, whether rewards and punishments are essential for learning to occur is controversial in that many learning theorists claim that reinforcement6 is unnecessary.
Lay-Away – The purchase of an article with a down payment, but the store retains the article until full payment is made, often in a series of installments.
Layout – The format of a print advertisement that indicates where the components parts (artwork, body copy, headline, subhead, trademark, and other graphic elements) are to be placed on the page.
Lead, sales – An inquiry or referral about an individual or organization that is a potential customer.
Lead Users – 1. (product development definition) A small group of potential product users who need products before the general market recognizes the need. If this need can be satisfied, the lead user expects significant benefits. Because lead users have a specific problem to be solved in their own organizations, they can provide valuable information and assistance to a product developing organization. 2. (industrial definition) The buying organizations that consistently are early adopters of new technologies. Lead users have needs that will become general in the marketplace later on, benefit significantly by obtaining a solution to those needs, and often largely influence other firm’s buying decisions. For example, Intel has been a lead user of micro chip production equipment.
Leader Pricing – The practice of knowingly and intentionally marking a part of the stock at prices that will not yield the maximum profit return on these particular goods. The article so selected for special price emphasis is identified as a leader.
Leadership Substitute – A nonsupervisory source of direction, guidance, support, and encouragement for salespeople. Examples of leadership substitutes include closely-knit, cohesive work groups; advisory and staff personnel
Leading – The amount of space between lines of text on a printed page.
Leading Economic Indicators – Those economic indicators that reach peaks or troughs before aggregate economic activity.
Leading Question – A question frame so as to give the respondent a clue as to how he or she should answer.
Leadtime – 1. (retailing definition) The amount of time determined by a merchandiser to be necessary to add on to the purchasing period in order to assure that sufficient merchandise will be on hand until the particular order is received. If delivery time is long, or if raw materials are in short supply, leadtime may be longer than when conditions are normal. 2. (physical distribution definition) The time required to receive inventory once an order is placed. It is also called replenishment time.
Leapfrog Routing – A method for scheduling calls that requires salespeople to call on a cluster of customers that are in close geographic proximity, “leaping” over single customers in isolated areas. The objective of the method is to minimize travel time.
Learning – According to Hilgard, learning refers to more or less permanent change in behavior that occurs as a result of practice. It is a process by which an activity originates or is changed through reacting to an encountered situation, but does not include those changes induced by maturation, genetic response tendencies, or temporary situations such as fatigue or drug influence. It includes such activities as the learning of facts and skills, brands, jingles, purchase behavior, beliefs, and attitudes.
Learning Curve – Typically, this is a graph of the amount of material learned, plotted against time or number of trials. Many learning situations lead to an S-shaped curve.
Learning Decay – The fading of memory of a specific learned response. Because forgetting is a controversial issue among learning theorists-some claiming that nothing is ever forgotten – the terms decay of advertising effects or decay of a ;earned response are more accurate for the process of forgetting.