Protection Department – The operating unit of a retail store that is responsible for protecting the merchandise or other assets from pilferage (internal or external). Those working in the department may be store employees or outside people. It is sometimes referred to as a loss prevention department or function.
Protective Tariff – An import duty or tax applied to goods imported from abroad with an intention to exclude these products or greatly reduce imports of them.
Prototype – The first physical form or service description of a new product, still in rough or tentative mood. Occasionally a prototype may precede research and development if making it is easy (e.g., cake mixes. With complex products, there may be component prototype as well as one finished prototype. On services, the prototype is simply the first full description of how the service will work, and comes from the systems design or development.
Proximo Dating – This specifies the date in the following month on which payment must be made in order to take the cash discount -e.g., terms of “2%, 10th proximo, net 60 days,”meaning that the bill must be paid prior to the tenth day of the month following purchase in order to take the discount, but that a credit period of 60 days from the first month is allowed.
Psychic Income – The intangible gratification or value that is derived from products, services, or activities, such as the improvement on a consumer’s self image as a result of purchasing certain highly desirable products.
Psychoanalytic Theory – A psychological theory developed by Sigmund Freud that emphasizes unconscious motivation.
Psychographic Analysis – 1.(consumer behavior definition) A technique that investigates how people live, what interests them, and what they like; it is also called life style analysis or AIO because it relies on a number of statements about a person’s activities, interests and opinions. 2. (marketing research definition) A technique hat investigates how people live and what interests them.
Psychographic Segmentation – The process of dividing markets into segments on the basis of consumer life styles.
Psychological Pricing – A method of setting prices intended to have special appeal to consumers.
Puffery – 1. (advertising definition) An exaggerated advertising claim that would be generally recognized as such by potential customers. 2.(consumer behavior definition) An advertising term implying gross exaggeration but usually not considered deception because it is assumed not to be believable. Examples are the mile-high ice cream cone or the world’s softest mattress. 3. (sales definition) The exaggerated statements made by a salesperson about the performance of a product or service.
Pull Strategy – 1.(physical distribution) A manufacturing strategy aimed at the end consumer of a product. The product is pulled through the channel by consumer demand initiated by promotional efforts, inventory stocking procedures, etc. 2. (sales promotion definition) The communications and promotional activities by the marketer to persuade consumers to request specific products or brands from retail channel members.
Pulsing – An advertising timing or continuity pattern in which there is noted variation of media spending in the media schedule. There is some spending during all periods of the schedule, but there are periods in which the spending is notably heavier than others. This approach stands in contrast to a continuous media pattern in which equal amounts of spending are allocated to all time periods of the schedule.
Purchase Contract – A written agreement between buying and supplying organizations that specifies the terms of the transaction: product specifications, price, payment schedule, delivery terms, penalties and the like. It differs from the purchase order in that it is generally written by and signed by both parties.
Purchase Decision, in Organizational Buying – That phase of the organization’s buying process in which alternative offers of suppliers are evaluated and a selection of one (or more) supplier is made.
Purchase Intention – A decision plan to buy particular product or brand created through a choice/decision process.
Purchase Order – A (generally standard) document that is issued by a purchasing organization to a supplier requesting items in the quantities, prices, time and other terms agreed upon.
Purchase Requisition – An internal document issued by the user (or requiring) department to the purchasing department, specifying goods or services required. It authorizes the expenditure and often includes suggested suppliers and prices.
Purchasing – A generic term used to describe a title, a function, or a process by which a firm acquires the factors necessary to produce and distribute goods and services.
Purchasing Agent – 1.(industrial definition) A member of the purchasing department responsible for one or more categories of products purchased. 2. (retailing definition) An independent middleman, buying broker for a principal or principals (usually wholesalers), paid a commission or fee for services.
Purchasing Department – The organizational unit responsible for learning the needs of operating units, locating and selecting supplier(s), negotiating price and other pertinent terms, and following up to ensure delivery.
Purchasing Manual – An internal document specifying rules for the relationship between the purchasing department, using departments, and suppliers. It details the principles and approved procedures associated with procurement.
Purchasing Power – A consumer’s ability to buy goods and services as distinguished from the amount of money a consumer has.
Purchasing Power Parity – An economic principles stating that a change in the relationship between price levels in two countries will require an adjustments in the currency exchange rate to offset the price level differences.