Pure Competition – A market model in which (1) a lower price is the only element that leads buyers to prefer one seller to another, and (2) the amount that each individual seller can offer constitutes such a small proportion that acting alone it is powerless to affect the price.
Push Money – Cash or other incentives paid directly to retail salespeople by the manufacturer to encourage sales of the manufacturer’s brand over competitive brands. It also is used to influence the retail sale of specific products in a line.
Push Strategy – 1. (physical distribution definition) A manufacturing strategy aimed at other channel members rather than the end consumer. The manufacturer attempts to entice other channel member to carry its product through trade allowances, inventory stocking procedures, pricing policies, etc. 2. (sales promotion definition) The communications and promotional activities by the marketer to persuade wholesale and retail channel members to stock and promote specific products.
Q-sort Technique – A general methodology for gathering data and processing the collected information; the subjects are assigned the task of sorting a number of statements by placing a specific number of statements in each sorting category; the emphases are on determining the relative ranking of stimuli by individuals and in deriving clusters of individuals who display similar preference orderings of stimuli.
Quality Control – A function located somewhere in or close to the operation unit. Its primary purpose is to verify that the goods or services produced meet the specifications established for them. For goods, the process involves statistical sampling and measurement of parts of the output from manufacturing. for services, quality control involves actual field sampling of ongoing operations function, seek causes for product deficiencies, answer customer complaints, etc.
Quantity Discount – A reduction in price for volume purchases.
Quick Response (QR) – A finished product inventory management system that times replenishment to actual daily sales. Under this system, the retailer maintains lean inventories through frequent store deliveries of small lots. Point-of-sale information is exchanged daily between the retail outlet and distributors or manufacturers in order to time product delivery closer to actual demand.
Quick-Response Delivery System (QR) – A system designed to reduce the lead time for receiving merchandise, thereby lowering inventory investment, improving customer service levels, and reducing distribution expenses. It is also Known as just-in-time inventory management system.
Quota – 1. (global marketing definition) A trade term that denotes a specific numerical or value limit applied to a particular type of good either in the case of exports or imports of goods. 2. (sales definition) A target level of performance and/or activity that the salesperson is expected to achieve. Comment: A quota can be established for various performance measures such as sales, gross margin, and new accounts. The quota can be used in a variety of sales management functions including forecasting sales, motivating salespeople, and evaluating their performance.
Quota Sample – a nonprobability sample chosen in such a way that the proportion of sample elements possessing a certain characteristics is approximately the same as the proportion of the elements with the characteristic in the population; each field worker is assigned a quota that specifies the characteristics of the people he or she is to contact.
Quota-Bonus Compensation – A plan that involves a basic salary and commissions paid on sales in excess of a predetermined quota.
Quotation – A promise from a potential supplier stating the supplier’s willingness to supply and deliver the item(s) required (by a potential buyer) within a certain period of time at a certain price. it is a response to a buyer’s request for quotation.
Rack Jobber – A wholesale middleman operating principally in the food trade, supplying certain classes of merchandise that do not fit into the regular routine of food store merchandise resource contacts. The rack jobber commonly places display racks in retail stores providing an opening inventory on a consignment or on a guaranteed-sale basis, periodically checks the stock, and replenishes inventories. The term is somewhat archaic with trade acceptance of the term service merchandiser.
Raincheck – A promise given to customer when merchandise is out of stock to sell them merchandise at the sale price when the merchandise arrives.
Randomized Response Model – An interviewing technique in which potentially embarrassing and relatively innocuous questions are paired, and the question the respondent answers randomly determined.
Range – The maximum distance a consumer is ordinarily willing to travel for a good or service; as such it determines the outer limit of a store’s trade area or market area.
Rapport – A close, harmonious relationship between a salesperson and customer.
Rate – 1. (advertising definition) The cost of a unit of space or time in an advertising media vehicle. 2. (physical distribution definition) A charge usually expressed in dollar terms for the performance of some transportation or distribution service.
Rate Card – A printed listing of the charges associated with different amounts of time or space, different placements in the vehicle, and other conditions of sales. often rate cards serve as the starting point for negotiation in the fashion of the sticker on the window of a new car.
Rate Differential – The difference between the local advertising and national advertising rates charged by a local advertising vehicle.
Rate of Return Pricing – A method of determining prices by adding a markup that will produce a predetermined return of investment.
Rate Regulations – The process by which rates are administered. in a highly regulated economy, this could include extensive rules and policies on pricing and related services. Regulations occurs at the federal, state, and local levels.