Arbitrage – the simultaneous purchase and sale of the same commodity or security in two different markets in an attempt to profit from price differences in the two markets.
Arcade Shopping Center – An enclosed shopping area with a number of stores in lanes under archways and with one roof overhead.
Area of Dominant Influence (ADI) – The geographic area surrounding a city in which the broadcasting stations based in that city account for a greater share of the listening or viewing households than do broadcasting stations based in other nearby cities.
Area Sampling – A form of cluster sample in which areas (for example, census, tracts, blocks0 serve as the primary sampling units. The population is divided into mutually exclusive and exhaustive areas using maps, and a random sample of areas is selected. If all the households in the selected areas are used in the study, it is one-stage area sampling, while if the areas themselves are subsampled with respect to households, the procedure is two-stage area sampling.
Arrival of Goods – This is applicable to the cash discount period, indicating that the discount will be granted if payment is made within the number of days specified, calculated from the time the goods arrive at the destination. It is used for the purpose of accommodating distantly located customers. The net payment period, however, is computed from the time of shipment.
Art Director – A person possessing good taste who is skilled in the visualization of advertising ideas.
Articulated Railcar – An extended rail chassis that can haul up to ten containers on a single flexible unit. This reduces the weight and the time required to interchange railcars.
Artificial Intelligent (AI) – An Area of computer science concerned with designing smart computer systems. AI system exhibit the characteristics generally associated with intelligence in human learning, reasoning, and solving problems.
Artist’s Medium – The materials that an artist uses to produce his work. May be a air brush, crayon, ink pen, oil paint, pastel stick, pencil wash, photography, etc.
Artwork – Any illustration 9including design elements, drawing, painting, photography) used in the production of print advertising. The term is often used in the short form art.
As is – Denotes an article of merchandise sold without recourse of any sort. The buyer accepts the full risk of any hidden or apparent complication.
Aspiration – Goals people set for themselves and subjectively strive to achieve. Directly connected with Motivation, they may wax and wane, be of long or short duration, and are subject to change as reality becomes more apparent.
Aspiration Group – A group in which an individual desires membership. May be in the interest of some type of status- seeking or emulation. See: Reference Group
Assembler – A merchant middleman whose economic justification lies in his performance of the activity of assembly. 2. An establishment engaged primarily in purchasing farm products or seafood in growers’ markets or producing regions. the assembler usually purchases in relatively small quantities, concentrates large supplies, and thus assembles economical shipments for movement into a major wholesale market center.
Assembly – (1) The process of bringing together the produce of a number of farmers into a unit of economical shipping size. (2) The process of bringing together the products of a number of manufacturers so that a limited number of each item may be available to the user, e.g., as in wholesaling.
Assembly service – An arrangement with a carrier in which the carrier consolidates shipments from a number of consignors to a single consignee. See: Distribution Service
Assessment Method – A method of arriving at an advertisement budget by summing a specific, arbitrary amount of money for each unit sold. Convenient to use, it is nevertheless arbitrary and does not consider the actual need to reach objectives. May be applied as well to the development of the budget for the the total marketing mix. See: Percentage of Last Year’s Sales Method, Percentage of Next Year’s Sales Method, Plunge Method, Task Method
ASSESSOR – A model for predicting the market share of a new frequently purchased product using pretest market information. Perceptions and preferences of potential customers are measured via interview and a simulated shopping experience conducted at a central location. The prediction is based on the sample participants’ reaction to advertisements for several brands), estimated level of product trial (based on simulate shopping experience), estimated repeat purchase level (via follow-up interview), and brand preference judgments (Silk and Urban 1978) Evidence on the model’s predictive validity has been reported by Urban and Katz (1983)
Assignment – The formal transfer of property, as for benefit of creditors, especially accounts receivable as collateral for a loan.
Assimilation-Contrast Theory – Suggest that consumers will reject an advertisement that requires an extreme change in attitude. Such a message is likely to be seen as more extreme than it actually is, further reinforcing the rejection action.
Assorting – The second phase of the sorting process, the first phase of which is Standardization and Grading. Assorting occurs in three stages. The first is Breaking Bulk of EOQ shipments into smaller quantities. The second is assembling these into Assortments and quantities desired by costumers.
Assortment – (1) Indicate various forms of the same general type of product. See: Variety (2) As to an individual consumer, it is the particular combination of goods and services recognized by him as necessary to maintain or improve his standard of living. 3. (retailing definition) The range of choice offered to the consumer within a particular classification of merchandise. In terms of men’s shirts, for example, it is the range of prices, styles, colors, patterns, and materials that is available for customer selection. 4. (channels of distribution definition) A combination of similar and/or complementary products that, taken together, have some definite purpose for providing benefits to specific markets.
Assortment Display – The complete assortment that a store carries is presented for the shopper’s viewing. The display is called open assortment display if the shoppers can handle the merchandise, a closed assortment display if the merchandise is in a locked case requiring personal assistance from a sales clerk. If groups of related merchandise are shown in a special arrangement, the display is often called a setting display.
Assortment Plan – The range of merchandise of one type established to meet the requirements of customers by a determination of an inventory levels. See: Basic Stock, Model Stock
Assumptive Close – In Salesmanship, a close accomplished without the buyer’s verbal agreement. This becomes presumed when the buyer does not protest the salesperson’s beginning to write the order, or to wrap the item.