Cannibalizing a Market

Cannibalization – The loss of sales in the established products experience by a firm resulting from its own introduction of new products that are partial or complete substitutes .That is, the new product “steals” some of the sales of the established product.

Cannibalizing a Market – What happens when a new form of a product, instead of producing new business from market segments not before reached, eats into the volume already enjoyed from the existing product, so that no sales increase occurs. This did occur with Maxwell House Instant Coffee when Maxim Instant Coffee was introduced, until steps were taken to correct it.

Canonical Correlation Analysis – A multivariate technique not yet used extensively in marketing research, it can determine the relationship among number of dependent variables and a number of independent. Variables created as sets. Its use can free the investigator from having to pick single criterion variable from two or more possible criterion variables, or arbitrarily weighting the set of criterion variables in order to fit the problem into the standard format of multiple correlation analysis.  Parametric or Nonparametric

Capability Survey – Used in purchasing to denote an inspection of a prospective vendor’s entire operation to answer key questions regarding engineering ability, level of quality control, amount of equipment, capacity to manage finance, and any other area considered important to the choice of the source of supply. Generally involves a visit by the purchasing officer or team to the vendor’s plant.

Capacity – Generally, the productive potential of a firm, industry, or economy. See: Capacity Utilization Rate, Full-Capacity Output, Preferred Operating Rate

Capacity Requirements Planning ( CRP) – The evaluation of planned production to determined if it can be accomplished within the capacity limitations of manufacturing facilities. A capacity load projection is completed for each item in the master production schedule. The calculated load requirement is compared to available capacity, thus determining under-utilization or over-utilization of facilities.

Capital Utilization Rate – Ratio of actual output to full-capacity output of a firm, industry, or economy. Essentially, the proportion of capacity in actual use.

Capital – (1)Produced goods withheld from consumption for purpose of further production. (2) The owner’s equity in a business. (3) The owner’s investment in a business. (4) All economic goods in existence at a certain time which produce income in a society.

Capital Consumption Allowance – The sum of depreciation on major capital goods plus capital goods destroyed or damaged plus depreciation on minor capital goods.

Capital Goods – All types of goods of relatively long life used to produce other products. Includes manufacturing plants, Installations, and Accessory Equipment. Same as: Capital-Investment Goods See: Capital

Capital Intensive Industry – An Industry in which the requirements of plant and equipment is large in relation to the requirement for labor input. Petroleum refining, chemicals, and paper making are such industries. 2. The instruments of production that make up an organization’s plant and operating capacity. See: Labor Intensive Industry

Capital Intensive – A product or an industry in which plant and equipment requirements are large relative to labor.

Capital Turnover – The number of times total capital investment is divisible into sale; the greater this figure, the smaller the net profit on sales required to meet a given return on investment.

Capital-Investment Goods – Same as: Capital Goods See: Capital-Invest

CAPM Approach to Investment Analysis – A technique that employs the CAPM equation to calculate the risk adjusted, after-tax required rate of return in the net present value equation. this approach replaces the use of the traditional weighted average cost of capital. Beta is usually estimated as the average of the betas for firms already operating (exclusively) in the market in which the investment will be made.

Caps – Short form for: capital letters, or uppercase letters in contrast to lowercase letters.

Caption – (1) Explanatory words accompanying an illustration. (2) The heading of a page, section, or chapter.                See: Legend

Captive Item – Those products made by the firm, or by a firm which is vertically integrated.

Captive Market – The potential clientele of retail or service business located in hotels, airports, railroad stations, etc., where consumers do not have reasonable alternative sources supply.

Captive Rotary– A set of outdoor advertising locations used mainly for our advertiser with several different products to expose to the market.

Captive Market – The customers for a product or service who have but one source of supply, there being no reasonable alternatives, because this maybe considered a Monopoly situation, government agencies are sometimes given regulatory powers as, for example, with respect to public utilities. The term is often applied to shops located in airports, hotels, railroad stations, college centers, and the like, to seek to compare alternate sources of supply.

Car Card – A large card on which an advertising message is displayed in subway trains, buses and commuter trains.

Car Field – A set of card columns of a standard card used in ADP. The same set of columns (same field) is usually used on successive cards to store similar data. The cards supply the input data for whatever calculations or manipulations the machines are directed to perform within the scope of their capabilities.

Cargo – Product in the process of being moved by a transportation facility.

Cargo Buyer – A purchaser who takes delivery in full shipload quantities.

Cargo Distributor – See: Cargo Tonnage

Cargo Tonnage – In the United States Cargo may be charged for by weight using either the ton of 2,00 pounds or the British long ton of 2,240 pounds. In countries using metric system the weight ton is 2,204.62 pounds. Or, measurement may be used, considering a ton equal to 40 cubic feet (in some instances a larger number). Most ocean freight is taken at weight or measurement (W/M) at ship’s option.

Cargo Weight – See: Cargo Tonnage

Carload – (1) The quantity or weight of freight required to qualify for the carload rate. (2) A freight car loaded to its carrying capacity. See: Truckload

Carloadings – The number of railroad freight cars loaded in a period. Frequently used as a measure of business activity.

Car-Lot Wholesaler – A merchant middleman whose main function is to accept carload shipments of fruits and vegetables and then to divide the shipments into smaller lots for sale to Jobbers and to Chain store buyers.

Carriage Trade – An expression carried over from times gone by, it refers to a class of wealthy customers who expect and get special services for which they seem willing to pay.

Carrier – A general designation for a firm the business of which at least in part is to transport goods from one place to another. SEE: Assembly Service, Carousel Truck, Common Carrier, Consignee, Consignor, Contract Carrier, Private Carrier

Carrousel Truck – A concept of truck loading using shipment cages any one of which the driver can bring at will to the tail gate.

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