Ex-parte – A regulatory practice of pretesting proposed regulatory rules in an effort to get reactions and comments from shippers, carriers,and other interested parties.
Exception Rate – A transportation charge based on a class rate but reduced due to special circumstances, usually local or regional competitive conditions.
Exchange – All activities associated with receiving something from someone by giving something voluntarily in return.
Exchange Control – The control of movements of funds and of purchases of currency by a government. Exchange control may be utilized in support of any of the following objectives: 91) to keep exchange rates stable. (2) to keep the currency undervalued to stimulate exports, or (3) to keep the currency overvalued to handicap exports and encourage imports.
Exclusive Dealing – A restriction that is imposed by a supplier on a costumer forbidding the customer from purchasing some type of product from any other supplier. This restriction is subject to an examination of whether it substantially lessens competition or restrains trade. Exclusive dealing should not be confused with exclusive distributorships, a term applied to arrangements in which a supplier promises not to appoint more than one dealer in each territory.
Exclusive Distribution – 1. (channels of distribution definition) A form of market coverage in which a product is distributed through one particular wholesaler or retailer in a given area. 2. (retailing definition) The practice whereby the vendor agrees to sell the goods or services within a certain territory only through a single retailer or a limited number of retailers. It may also apply to wholesalers.
Exempt Carrier – A transportation provider not subject to direct regulation regarding operating rights or pricing policies. It must, however, comply with licensing and safety laws. If engaged in interstate movement, the carrier must publish its rates.
Exhibit – The gathering and displaying of products, people, or information at a central location for viewing by a diverse audience.
Expandability of Demand – The degree to which the demand schedule can be shifted through the use of marketing mix variables such as advertising and personal selling.
Expectancy – A salesperson’s estimate of the likelihood that if he or she increases his or her effort on some job activity, a higher level of performance will occur. In essence, expectancy is the linkage between effort and salesperson performance. For example, a salesperson might estimate that there is 50 percent probability (expectancy) that if he or she spends 10 percent. Expectancies can influence a salesperson’s level of motivation.
Expectancy-Value Mood – This is one of the major schools of motivation emerging from the work of Kurt Lewin. According to Wilkie, the major proposition is that the strength of the tendency to act in a certain way depends on the act will be followed by a given consequence (or goal) and the value of that goal to an individual. It assumes that the consumer behaves purposively and evaluates, say, the purchase of a particular brand in terms of how desirable the consequences of the purchase of that brand are for him or her.
Expectation-Disconfirmation Model – A model that proposes that satisfaction depends upon the consistency between expectations and performance. Dissatisfaction is proposed to result when product performance is below expectations, whereas satisfaction arises when performance equals or exceeds expected performance.
Expediter – An expediter is one who works to speed up shipment for delivery.
Expense Account – An account maintained by salespeople that includes travel, entertainment and other expenses which they incur for business purposes and for which they are reimbursed by their employers.
Expense Center – A collection of controllable costs that are related to one particular area of work or kind of store service.
Expense Center Accounting – The grouping of expenses by their necessity in performing a particular kind of store service. For example, some expense centers are management, property, and equipment, accounts payable, etc. Natural expenses are typically included as part of the concept.
Experience Curve Analysis – The application of the experience curve effect, to understand (1) how the components of total cost of a company’s product are affected by cumulative experience, (2) the relationship of the industry experience and average industry prices and costs, and (3) how competitive cost comparison relate to current costs of direct competitors to their cumulative experience.
Experience Curve Effect – A systematic decline in the cost per unit that is achieved as cumulative volume (and therefore experience) increases. There are three sources of the experience curve effect: 1. learning – the increasing efficiency of labor that arises chiefly from practice; 2. technological improvements – including process innovations, resource mix changes, and product standardization; and 3. economies of scale – the increased efficiency due to size.
Experience-Curve Pricing – 1. (pricing definition) A method of pricing in which the seller sets the price sufficiently low to encourage a large sales volume in anticipation that the large sales volume would lead to a reduction in average unit costs. Generally this method of pricing is used overtime by periodically reducing the price to induce additional sales volumes that lead to lower per unit costs. 2. (economic definition) A price-setting method using a markup on the average total cost as forecast by cost trends over time as sales volume accumulates.
Experience Survey – A series of interviews with people knowledgeable about the general subject being investigated.
Experiment – A scientific investigation in which an investigator manipulates and controls one or more independent variables and observes the dependent variable for variation concomitant to the manipulation of the independent variable(s).
Experimental Demand Curve – A price volume relationship estimated by simulating actual market conditions in an experiment or other form of pricing research.
Experimental Design – A research investigation in which the investigator has direct control over at least one independent variable and manipulates at least one independent variable.
Experimental Group – A group of subjects in an experiment who are exposed to an experimental treatment or alternative whose effect is to be measured and compared.
Experimental Mortality – An experimental condition in which test units are lost during the course of an experiment.
Expert Systems – 1. (models definition) Interactive computer systems that, by applying a variety of knowledge elements (e.g., facts, rules, models) withing A specified domain, can solve a problem with an expertise comparable to that of an acknowledged human expert. As part of the developments in artificial intelligence, experts systems have been developed in various fields (medicine, defense, manufacturing, etc.) In recent years, a number of marketing expert systems have been developed including ADCAD (an expert system for the design of advertising appeals and executions). 2. (marketing research definition) A computer -based artificial intelligence system that attempts to model how experts in the area process information to solve the problem at hand.
Explicit Costs – The costs that generally of a contractual or definite nature, including expenses for such items as wages, telephone bills, light bills, and supplies. They are explicitly carried on the accounting records as costs and are charged against the operation of the business because they are obvious and definite in amount.
Explanatory Research – A research design in which the major emphasis is on gaining ideas and insights; it is particularly helpful in breaking broad, vague problem statements into smaller, more precise subproblem statements.
Exponential Smoothing – A forecasting technique to estimate future sales using a weighted average of previous demand and forecast accuracy. The new forecast is based on the old forecast incremented by some fraction of the differential between the old forecast and sales realized. The factor used to calculate the new forecast is called an alpha factor.