Commodity Approach – An approach to the study of marketing characterized by the following of a product through all the ramifications of its movements from producers to users.
Se: Functional Approach, Institutional Approach
Commodity Exchange – (1) An organization or associations of an individuals which provides a place for trading in an item such as wheat under uniform rules and with facilities for gathering and disseminating information. (2) Frequently used to designate just the facilities provided.
Commodity Exchange Authority – The federal government’s regulatory agency which supervises all domestically produced agricultural commodities traded on organized exchanges, except hides. Imported commodities are not involved. Its powers have been transferred to CFTC
Commodity Rate – A special transportation rate approved for certain goods. Such rates tend to be lower and less based on distance than class rates. 2. A transportation rate published for a specific commodities without regard to classification. Carriers commonly publish commodity rates when a large quantity of product moves between the two locations on a regular basis. When a commodity rate exists, it supersedes the corresponding class rate or exception rate.
Common Area (of shopping center) – The area within a shopping center that is not for rental by tenants but is available for common use by all tenants, their customers, and invites.
Common Carrier – A transportation firm whose franchise to operate requires that it serve all who wish to use its services. Rules governing its operation are made by the ICC 2. A company that offers to transport property for revenue at any time and any place within its operating authority without discrimination. A common carrier is authorized to conduct for-hire transportation after receiving certification as fit, willing, and able.
Common Costs – The common or general costs that support a number of activities or profit segments. These costs cannot be traced to a product or segment.
Common Law – This term refers to that part of the law that grew up without benefit of legislation and resulted from court decisions; these rulings then became the precedent for subsequent litigation. According to legal theory, the colonists brought the common law of England with them to America.
Common Market – A group of countries that have harmonized tariff policies among members, established common tariffs for nonmembers and permit the free flow of factors of production among members.
Comparative Advantage – The considerations in international economics that each country will specialize in the producing and marketing of those goods in which it is most efficient. Unless artificial barriers are erected, it will export these and import those products in which it is least efficient. The same concept can be applied to regions within a country.
See: Theory of Comparative Advantage
Comparative Advertising – 1. (consumer behavior definition) An advertisement in which there is specific mention or presentation of competing brand(s) and a comparison is made or implied. 2. (advertising definition) An approach to the advertising message that persuades the audience by comparing the performance of two or more brands of a product or service. The reference brand may be the previous formula used by the advertiser, an unnamed competitor of the advertiser, or a specific and named competitor of the advertiser.
Comparative Marketing – An approach to the study of international marketing which delineates the similarities and the differences among the systems used in various countries to anticipate demand and to sell products.
Comparative Prices – Statements in advertisements or signs comparing specific prices with previous prices, other prices, or prices goods are estimated to be worth.
Comparative Rating Scales – A scale requiring subjects to make their ratings as a series of relative judgments or comparisons rather than as independent assessment.
Comparison – A technique in advertising which attempts to show how the product similar to something else, so as to imbue the product with the desired aura. See: Contrast
Comparison Advertising – The process of constructing advertisements which directly compare the advertiser’s product or brand on one more specific characteristics with at least one competing brand that is named or made clearly recognizable. Not to be confused with the technique of comparison.
Comparison Department –The sometime title of a retail store unit charged with determining how the store’s quality, service, styles, prices, and other merchandise attributes compare with those competitors.
Comparison Shopper – An employee of a retailer who is responsible for reporting assigned competitor’s merchandising activities.
Comparison shopping – In retailing, the practice of seeking information about competitor’s activities regarding promotion, price, merchandise, store arrangement, etc. There are independent businesses that can be employed to do this, or a retailer may use one of his own employees as a comparison shopper.
COMPASS – An acronym for: Complete Operating Movement Processing and Service System, initiated by the Burlington Northern Railroad ,in which a computer receives, edits and stores car and train information that is reported by each location as the events occur. The information is processed for immediate availability of demand by yard and traffic offices through out the system, as well as car distributors, o which it gives summarized reports of all types of cars location.
Compatibility – (1) The degree to which a consumer recognizes that the new product is consistent with his current requirements, attitudes, and self-image. (2) With respect to the diffusion rate, how consistent the innovation is with existing behavior patterns and value systems to the potential market.
See: Characteristics Of Innovation
Compensation – (1) A personal defense mechanism used unconsciously to overcome feelings of inadequacy, inferiority, or frustrated motive. Important to the seller because some compensate by buying flashy or expensive things. See: Cognitive Dissonance
(2) Remuneration in money or benefits for work assigned. See: Draw (3) A CT transaction involving products related to the technology or goods delivered by the western exporter. They are usually longer -term than the Counterpurchases, have longer time lag for the reciprocal deliveries, and are usually far larger in dollar values.
Compensation Deal – An international trade, a transaction involving payment in goods and cash.
See: Buy-Back, Counterpurchase
Compensatory Import Charges – Taxes that correspond to various internal taxes, such as value-added taxes and sales taxes.
Compensatory Rule – In evaluating alternatives, the compensatory rule suggests that a consumer will select the alternative with the highest overall evaluation on a set of choice criteria. Criteria evaluations are done separately and combined arithmetically such that positive evaluations can offset or balance (compensate for) negative evaluations. This term is also called compensatory integration procedure, compensatory model, and compensatory process.
Competition – The rivalry among the sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. It is the product of vying for customers by the pursuit of differential advantage, e.i., changing to better meet consumer wants and needs. In economic theory, various competitive states such as monopolistic competition, oligopoly, perfect competition, and monopoly are delineated based on the degree of control that sellers have over price.