Monopoly

Monopoly – 1. (environments definition) A market situation where one firm markets all the goods and services and can influence price. 2. (economic definition) The complete control of an economic good for which there is no substitute.

Monopsony – A single buyer with monopoly buying power.

Mood – An emotional state at a particular time. A mood felt by an individual at one point in time may be unrelated to emotions felt an another point in time.

Mores – The cultural norms that specify behavior of vital importance to society and embody its basic moral values. The prohibition against bigamy or child abandonment in some cultures are examples. Mores often are called codified into law such that legal as well as social sanctions can be applied to assure conformity. In comparison, folkways are cultural norms that specify behavior not vital to the welfare of the groups and the means of enforcement are not clearly defined (according to Krench, Crutchfield and Ballachov). For example, folkways specify that a student shall wear specifically defined clothes on campus. If the student does not, the student may be considered a boor or a nerd, but this nonconformity is not regarded as having important consequences for the group. The punishment for nonconformity is informal, mild and variable.

Most Favored Nation (MFN) Principle – The principle whereby each country agrees to extend all countries the most favorable terms that it negotiates with any country.

Motivation – The positive or negative needs, goals, desires, and forces that impel an individual toward or away from certain actions, activities, objects, or conditions. It is the needs and wants of the individual, the driving force, guided by cognition, behind the behavior to purchase, approach, or avoid products and ideas and things.

Motor Carrier Act (1980) – This act was designed to reduce unnecessary regulation by the federal government in the trucking industry; however, it introduced new and complex regulations.

Multiattribute Attitude Models – These models are designed to predict attitudes toward objects (such as brands) based on consumers’ evaluation of product attributes or expected consequences.

Multiattribute Models of Attitudes – The several theories of attitudes, such as Fishbein’s learning theory of attitudes, with the basic assumption that attitudes are based upon the individuals perceptions of the attributes of the choice alternatives. These models usually include the idea that the individual assigns importance weights to each attribute and arrives at an overall evaluation on the basis of these weighted attributes.

Multibrand Strategy – In this strategy, the company has more than one brand of product, competing with each other, in a given market. This contrasts with the strategy of family brands where the separate items are given a common line identity and are usually each directed to one segment within the market. Under multibrand strategy there may not even be manufacturer identification, unless required by law.

Multibusiness Organization – This is a corporation engaged in more than one class of business. Each business may be organized as a division of the corporation or as a subsidiary company. Comment: Organizationally there may be no difference in the way a division and a subsidiary are viewed by corporate management even though the subsidiary is a separate legal entity controlled by the parent corporation through majority ownership or full ownership.

Mutichotomous Question – A fixed alternative question containing three or more alternatives in which respondents are asked to choose the alternative that most closely corresponds to their position on the subject.

Multidimensional Scaling – An approach to measurement in which people’s perceptions of the similarity of objects and their preferences among the objects are measured, and these relationships are plotted in a multidimensional space.

Multidomestic Strategy – A strategy that enables individual subsidiaries of a multinational firm to compete independently in different domestic markets. The multinational headquarters coordinates financial controls and some marketing policy, and may centralize some R&D and component production. Each subsidiary behaves like a strategic business unit that is expected to contribute earnings and growth proportionate to the market opportunity.

Multilevel Selling – 1. A sales approach that involves using company employees at multiple levels in the firm’s hierarchy to call on similar levels in the account. For example, the Vice President of Sales would call on the Vice President of Purchasing. 2. A strategy used by direct selling companies to have independent agents serve as distributors and resell merchandise to other agents who eventually make sales to consumers.

Multinational Corporation (MNC)-A stage in development of the global/transnational corporation.

Multiple Basing-Point Pricing System – In a multiple basing point pricing system, several locations are designated as basing points. The choice of a basing point is the point that yields the lowest delivered cost to the buyer.

Multiple Channels – The use of a combination of channels in selling a product or service to reach different and isolated target markets with different demands for service outputs.

Multiple Packaging – This usually refers to multiple-unit packaging, but it is also refers to situations in which a product has a primary package such as foil, bottle, or polyurethane, a secondary package such as a paper carton, and a tertiary package such as a corrugated shipping carton.

Multiple Purchasing – The strategy of dividing annual purchasing requirements of a good or service among more than one supplier. This is done to create a more competitive environment among suppliers and to reduce the buying firm’s dependence on a single source of supply. This is also called multiple sourcing.

Multiple Purpose Trip – A key concept in central place theory that argues that consumers prefer to visit more than one store per trip, generating positive externalities for neighboring stores.

Multiple-Unit Packaging – The practice of putting two or more finished packages of a product into a larger packaged unit (such as a six-pack of soda). The new wrap may vary from a brand to a larger completely closed container. Multiple packaging may be temporary , related to a promotional program.

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