Leased Department – A section of a retail business managed and operated by an outside person or organization rather than by the store or which it is a physical part, whether conducted by an individual or a chain.

Leasing – A contract through which the asset owner (lessor) extends the right to use the asset to another party (lessee) in return for a periodic payment of rent over a specific period. It is divided into financial leases and operating leases.

Legal – Something that is permitted, authorized, or sanctioned by law, not forbidden by law.

Letter of Credit – A letter by which a bank substitutes its creditworthiness for that of a buyer. It is a conditional guarantee issued by the bank on behalf of the buyer to a seller assuring payment if the seller complies with the terms set forth in the letter of credit.

Letters to the Editor – A newspaper section used to air public opinion. When used as a publicity device, letters to the editor can help a company make known its position on various topics of community interest.

Leverage – The degree to which a change in sales volume leads to a subsequent change in operating profits and financial performance of a company.

Lexicographic Rule – Unlike the conjunctive rule or disjunctive rule, the lexicographic rule, or heuristic, assumes that attributes of products can be ordered in terms of importance. In making a choice, alternative brands are first compared with respect to the most important attribute. If one alternative is preferred over all others for this attribute, then that alternative is chosen regardless of the values the alternatives have on the other attributes. If two brands are equal on the most important attribute, the second attribute is considered, then the third, and so on.

LEXIS – An on-line database that indexes articles and casework related to legal matters.

Licensing – 1. (strategic marketing definition) A relatively simple, low risk linkage that allows a manufacturer to “enter” new markets (typically foreign markets). It is an arrangement in which a licensee in a new market is given the right to use a process, trademark, patent, or other propriety item for a fee or royalty. 2. (global marketing definition) An agreement between two companies in which the licenser grants the right to the licensee to sell a patented product in specified markets for an agreed-upon fee. It is a tool for participating in foreign markets without large capital outlays, When capital is scarce, when import is restrictions forbid any means of entry, when a country is sensitive to foreign ownership, or when it is necessary to protect trademarks and patents against cancellation for non-use, licensing is a legitimate means of capitalizing on a foreign market.

Life Style – 1. (Consumer behavior definition) In general, this is the manner in which the individual copes and deals with his/her psychological and physical environment on a day-to-day basis. More specifically, it is used by some theorists as a phrase describing the values, attitudes, opinions and behavior patterns of the consumer. 2. (consumer behavior definition) the manner in which people conduct their lives, including their activities, interests, and opinions.

Life-cycle Costs – The costs of a durable good over its entire operating life. Comment: Life-cycle costs are often introduced to show that products with higher initial costs (e.g., because they are built better) really have lower costs over their effective live. (e.g., because they need fewer repairs).

Light Equipment – The industrial product (business product) classification that includes items such as portable power tools such as drills, saws, grinders, measuring instruments, typewriters, calculators, etc.

Limited Problem Solving (or decision making) – A choice process involving a moderate degree of cognitive and behavioral effort.

Limited-Function Wholesaler – The term applied to a variety of types of wholesalers that have placed emphasis upon reducing, eliminating, or modifying certain well-established functions ordinarily performed by regular wholesalers.

Limited-Service Advertising Agency – An advertising agency that specializes on a particular function such as the development of advertising messages, media planning, or media buying.

Line Authority – The authority managers need to manage the people assigned to them in order to achieve the goals for which they are held responsible by higher management. It generally encompasses the authority to hire, assign, direct, reward, demote, and fire, although company policy may require that some of these actions have the approval of higher line managers or managers with functional authority.

Line Extension – A new product marketed by an organization that already has at least one other product being sold in that product/market area. Line extensions are usually new flavors, sizes, models, applications, strenghts, etc. Sometimes the distinction is made between near line extensions (very little difference) and distant line extensions (almost completely new entries).

Line-haul Rate – The transportation rate commonly charged by common carriers (motor carriers). There are three basic types of line-haul rate: class rate, exception rate, and commodity rate.

Linear Learning Model – A brand choice model that views the probability of choosing a particular brand on the current choice occasion as linearly related to the consumer’s probability for choosing that brand on the previous period’s choice probability depends on whether the brand of interest was actually chosen last time (in which case the “acceptance operator” is applied) or not chosen last time (causing the “rejection operator” to be applied) (Kuehn 1962). In this model, the consumer’s probability of selecting a particular brand on the current choice occasion is affected by the entire sequence of previous choices – hence the term learning model is appropriate.

List Price – The selling price for an item before any discount or reductions in price.

Literature Search – A search of statistics, trade journal articles, magazines, newspapers, and books for data or insight into the problem at hand.

LITMUS – A model for predicting the sales over time of a new (typically frequently purchased) consumer product using pretest market data. The approach views a potential customer as moving through the stages of awareness-trial repeat. It incorporate explicitly the effect of advertising and promotion on awareness and trial of the product. The model’s parameters are calibrated using a laboratory-test-market coupled with a follow up telephone interview.

Live Rack – A storage rack designed so product will automatically flows forward to the desired selection position. The typical live rack contains roller conveyors and is constructed for rear loading. The rear of the rack is elevated; gravity causes the product to flow forward.

Living Standard – A measure of the possession and distribution of the material goods among members of a society.

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