Reference Price

Reference Price – The price that buyers use to compare the offered price of a product or service. The reference price may be a price in a buyer’s memory, or it may be the price of an alternative product.

Referral – A lead for a prospect given to the salesperson by an existing customer.

Referral Approach – A method used by salespeople to approach prospects in which the salesperson uses the name of a satisfied customer or friend of the prospect to begin the sales presentation.

Refund – 1. (pricing definition) A return of the amount paid for an item. 2. (sales promotion definition) An offer made by the seller to return a certain amount of money to the purchaser when the product is purchased alone or in combination with some other product.

Refusals – A nonsampling error that arises because some designated respondents refuse to participate in the study.

Regional Edition – The subdivision of a national magazine’s circulation into geographic regions, so that advertisers can purchase only the portion of the publication’s circulation that applies to their immediate needs. A region can be a group of neighboring states, a single state, or in some instances, regions within specific states. A demographic edition operates on the same principle, except that the subdivisions are based on various demographic characteristics of the publication’s circulation.

Regression Analysis – A statistical technique used to derive an equation that relates a single, continuous criterion variable to one or more continuous predictor variables.

Reilly’s Law – A model used in trade area analysis to define the relative ability of two cities to attract customers from the area between them.

Reinforcement – 1. (consumer behavior definition) A consequence that occurs after a behavior that increases the probability of future behavior of the same type. 2. (consumer behavior definition) A term from learning theory denoting the reward available to an organism for the response that the experimenter was trying to create or encourage.

Relationship Marketing – Marketing with the conscious aim to develop and manage long-term and/or trusting relationships with customers, distributors, suppliers, or other parties in the marketing environment.

Relationship Value – The bonds, both actual and perceptual, that are created between the customer, the marketer, and the brand by a specific sales promotion event.

Relative Precision – A degree of precision desired in an estimate of a parameter is expressed relative to the level of the estimate of the parameter.

Reliability – The similarity of results provided by independent but comparable measures of the same object, trait, or construct.

Remarking – The practice of remarking merchandise due to price changes, lost or mutilated tickets, or customer returns.

Reorder Unit – The unit in which an item is reordered, the exact amount depending on trade practices – e.g., dozen, gross, nearest hundredweight, or foot.

Repeat Sale – The subsequent sale of a product after the initial purchase. The level of repeat sales for a product is often used as a measure of customer satisfaction- the higher the level of repeat sales, the more satisfied customers are.

Replacement Sale – A sale that takes place when a product becomes physically or economically obsolete. The timing of replacement is influenced by a customer’s business prospects, its cash flow, product alternatives in the market, as well as the seller’s financing terms and sales efforts.

Replenishment Cycle – A term used in inventory management that describes the process by which stocks are resupplied from some central location. This process often involves the development of quantitatively based inventory models designed to optimize this resupply process.

Reply Card – An addressed card inserted between pages of a magazine or newspaper.

Reply Envelope – An addressed envelope inserted between pages of a magazine or newspaper.

Repossession – The recovery of merchandise by the store after delivery, owing to a customer’s failure to complete payment.

Request for Proposal (RFP) – A request issued by a potential buyer desiring bids from several potential vendors for a product or service satisfying specifications describing the buyer’s needs.

Request for Quotation (RFQ) – A document transmitted to a potential supplier requesting price and delivery terms on a specific item or sets of items. A supplier response to an RFQ with a quotation.

Resale Price Maintenance – The determination or suggestion by the manufacturer of the price at which an item will be resold by wholesalers and/or retailers.

Resale Price Maintenance Laws – Federal and state statutes permitting agreements between a supplier and a retailer that state that the latter should not resell commodities below a specified minimum price.

Research and Development (R&D) The function of working through the various sciences and technologies to design new products. This usually involves some basic research for creating new technologies, and some applied research for converting those basic discoveries (an others) into specific new products. The applied (or development) phase begins after new product concepts have been screened and desirable attributes set up for them. It ends when scientific personnel deliver to manufacturing the necessary process specifications and finished product specifications. R&D departments also have many other duties not so directly related to new products.

Research Design – A framework or plan for a study that guides the collection and analysis of the data.

Research Process – A sequence of steps in the design and implementation of a research study, including problem formulation, determination of sources of information and research design, determination of data collection forms, design of the sample and collection of the data, analysis and interpretation of the data, and the research report.

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