Economic Environment

Early Adopters – The second identifiable subgroup within a population that begins use of an innovation. They follow innovators and precede the early majority.. Their role is to be opinion leaders and have influence over the early majority.

Early Majority – The third identifiable subgroup within a population that adopts the innovation. They are preceded by early adopters and innovators. The early majority like to await the outcome of product trial by the two earlier groups, yet are not as slow to adopt as the next two groups, late majority and laggards.

Early Markdown – The income resulting from work or services performed as contrasted with income from such sources as investments or rent.

Ecology – The study of the relations among living species and their physical and biotic environments through the mechanisms of various systems. Consideration is given to environmental impact on development, behavior, and spatiotemporal and demographic relations.

Economic Concept of Rent – A term reflecting the maximum amount that can be spent by a retail store for yearly rent expenses. It is calculated by subtracting from planned sales all projected non-rent costs including a projected or planned profit figure.

Economic Determinism – A philosophy, perspective, or belief that economic forces ultimately are determinants of social and political change.

Economic Environment – The economic environment encompasses such factors as productivity, income, wealth,inflation, balance of payments, pricing, poverty, interest rates, credit, transportation, and employment; it is the totality of the economic surroundings that affect a company’s markets and its opportunities.

Economic Goods – The goods that are so scarce relative to human wants that human effort is required to obtain them.

Economic Indicator – The data collected overtime that reflect economic activity and general business conditions.

Economic Man – A model of human behavior assumed by economists in analyzing market behavior. The economic person is a rational person who attemps to maximize the utility received from his/her monetary outflows and sacrifices.

Economic Order Quantity – The order quantity that minimizes the total costs of processing orders and holding inventory.

Economic Organization – The way in which the means of production and distribution of goods are organized, such as capitalism or socialism.

Economic Shoppers – The shoppers who try to maximize the ratio of total utility and dollars of expenditure.

Economic-lot-Sizing – An inventory management tecnique used to determine order quantity or order period which minimizes the total cost of inventory maintenance and ordering. This requires continous demand.

Economics -1. The science that deals with human wants and satisfaction. 2. The science that deals with person’s efforts to satisfy his/her wants through the use of scarce resources of nature.

Economies of Scale – 1. (economic definition) The savings derived from producing a large number of units – e.g., in a situation in which all inputs are doubled, output may be more than doubled. 2. (global marketing definition) The decline in per unit product costs as the absolute volume of production per period of increases.

Economy Pack – A merchandising phrase pointing out savings by including several products as one item in one wrapping.

Ecosystem – The complex of interactions of all the organisms with their environments and with each other. Technically, it is a submit of biosphere or a unit of landscape. The interactions of members of a distribution channel, or the interaction of a company and its products with a consumer environments are examples of marketing applications.

Editing – The inspection and correction if necessary, of a questionnaire or observation form.

Effective Demand – People with money and the inclination to buy.

Effective Frequency – An advertiser’s determination of the optimum number of exposure opportunities required to effectively convey the advertising message to the desired audience or target market.

Efficient Market Hypothesis – In its so called “semi-strong” form, this hypothesis states that it in setting security prices at any time, the market correctly uses all publicly available information about the underlying corporations whose stocks are traded in the market. In the absence of inside information, this implies that investors cannot consistently achieve performance in excess of the market “average” for any given level of risk. The “semi strong” hypothesis enjoy wide acceptance in financial economics.

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