Business Administration: Finance, Consumer Behavior, B2B, and Global Marketing

Vocabulary flashcards covering core topics in financial valuation, time value of money, consumer behavior analysis, business purchasing processes, and global market expansion strategies.

Subcultures

Homogeneous groups within a larger culture that provide specific identification and socialization, such as nationalities, religions, racial groups, and geographical regions.

Primary Reference Groups

Groups with which an individual interacts continuously and informally, such as family, friends, and co-workers.

Secondary Reference Groups

Groups with which an individual interacts more formally and less continuously, such as religious and professional organizations.

Aspirational Groups

Groups that a consumer hopes or aspires to join in the future.

Dissociative Groups

Groups whose values or behaviors a consumer rejects and avoids aligning with.

Opinion Leader

A person who offers informal advice or information about a specific product or product category whose opinion is valued by others.

Cliques

Small groups whose members interact frequently, share similar interests, and tend to isolate themselves from new ideas.

Family of Orientation

An individual's parents and siblings who exert a fundamental and enduring influence on buying behavior.

Family of Procreation

An individual's spouse and children who exert a direct day-to-day influence on purchasing decisions.

Actual Self-Concept

How an individual consumer views and perceives themselves.

Ideal Self-Concept

How an individual consumer would like to view themselves.

Maslow's Hierarchy of Needs

A motivational theory structuring human needs into five hierarchical levels from lowest to highest: 1) Physiological, 2) Safety, 3) Social, 4) Esteem, and 5) Self-actualization.

Selective Attention

The psychological screening process where consumers filter out the majority of incoming stimuli due to overexposure.

Selective Retention

The tendency to remember information that supports personal attitudes and beliefs while forgetting conflicting points.

Selective Distortion

The tendency of consumers to interpret incoming information in a manner that fits their existing perceptions.

Associative Network Memory Model

A structural view of long-term memory that models memory as a network of nodes storing information connected by links of varying strength.

Decision-Making Sets Diagram

The visual sequence of brand filtering during consumer decision-making: Total Set $\rightarrow$ Awareness Set $\rightarrow$ Consideration Set $\rightarrow$ Choice Set $\rightarrow$ Decision.

Expectancy-Value Model

An evaluation model where consumers combine brand beliefs by assigning percentage weights to attributes based on importance, multiplying ratings, and choosing the brand with the highest total score.

Conjunctive Heuristic

A non-compensatory decision rule where the consumer sets a minimum acceptable cutoff point for each attribute and selects the first brand that satisfies all cutoffs.

Lexicographic Heuristic

A decision shortcut where the consumer selects the brand that rates highest on the single attribute perceived to be most important.

Elimination-by-Aspects Heuristic

A decision rule where consumers compare brands on an attribute selected probabilistically based on importance, eliminating any brand that fails to meet the threshold.

Availability Heuristic

A decision shortcut in behavioral economics where consumers base predictions on the quickness and ease with which a product outcome comes to mind.

Representativeness Heuristic

A mental shortcut where consumers base predictions on how representative or similar an outcome is to existing mental examples or packaging.

Anchoring and Adjustment Heuristic

A heuristic where consumers form an initial judgment anchor and subsequently adjust that position based on additional incoming information.

Organizational Buying

The decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.

Straight Rebuy

A business purchasing situation where the purchasing department reorders routine goods or services without modification.

Modified Rebuy

A business buying situation where the buyer wants to modify product specifications, prices, delivery requirements, or suppliers.

New Task

A business buying situation where an organization purchases a good or service for the very first time.

Buying Center

The decision-making group of a purchasing organization, comprised of initiators, users, influencers, deciders, approvers, buyers, and gatekeepers.

Gatekeepers

Buying center participants who hold the power to prevent sellers or sales information from reaching other decision-makers.

Buygrid Framework

A framework detailing the 8 major stages (buyphases) of the industrial buying process relative to the 3 major buying situations (buyclasses: New Task, Modified Rebuy, Straight Rebuy).

Product Value Analysis (PVA)

A cost-reduction approach in which components are systematically studied to determine if they can be redesigned, standardized, or manufactured at lower cost without reducing performance.

Vertical Hubs

E-procurement websites centered on specific industrial sectors such as plastics, steel, chemicals, or paper.

Functional Hubs

E-procurement web portals focused on supply chain support functions such as logistics, media-buying, or advertising.

Risk and Gain Sharing

A pricing arrangement in which a supplier promises to cut buyer costs by a specified target, retaining excess savings if surpassed or compensating the buyer if targets are missed.

Systems Buying

The practice of purchasing a complete turnkey solution to a problem from a single prime vendor rather than separate components from multiple suppliers.

Global Firm

An enterprise operating in more than one country that captures R&D, production, logistical, marketing, and financial advantages unavailable to domestic competitors.

Waterfall Approach

An international expansion strategy of gradually entering foreign country markets in a planned sequence.

Sprinkler Approach

An international market entry strategy of entering many foreign countries simultaneously.

Born Global

A company that markets its products to the entire global market from its inception.

BRICS

An acronym identifying the emerging market national economies of Brazil, Russia, India, China, and South Africa.

CIVETS

An acronym representing the developing market nations of Columbia, Indonesia, Vietnam, Egypt, Turkey, and South Africa.

Licensing (Global Entry Mode)

A foreign entry mode where a licensor grants a foreign company permission to use a manufacturing process, trademark, patent, or trade secret for a fee or royalty.

Product and Communication Strategies Matrix

A framework mapping international expansion strategies into Straight Extension, Product Adaptation, Communication Adaptation, Dual Adaptation, and Product Invention based on changes to product and communication.

Straight Extension

Marketing an unchanged product in a foreign market without modifying marketing communications.

Product Adaptation

Altering a product to meet local conditions, regional demands, or specific user preferences in international markets.

Dual Adaptation

Adapting both the product and the marketing communications to suit specific conditions in foreign target markets.

Backward Invention

Reintroducing earlier, simplified product forms that are well-suited to the needs and income levels of a developing country.

Forward Invention

Creating a brand new product designed specifically to meet a distinct need in another country.

Dumping

The practice of selling goods in a foreign market at a lower price than in the home market or below production cost to capture market share.

Gray Market

An unauthorized market channel where genuine branded goods are bought cheaply in one country and resold at higher prices in another.

Country-of-Origin Effects

Mental associations and beliefs triggered in consumers' minds based on the country where a product is produced or designed.