AP Business with Personal Finance - Unit Two Vocabulary

Comprehensive vocabulary flashcards covering key terms and concepts from Unit Two of AP Business with Personal Finance, including marketing principles, consumer behavior, market research methods, data visualization, and product development.

Marketing

The process of promoting, selling, and delivering products that satisfy customers' needs and wants.

Customer Data

Information that businesses collect about their customers to better understand, serve, and engage with them.

Demographic Data

Descriptive information about people's identity, situation and background.

Psychographic Data

Information on people's cognitive and behavioral characteristics.

Market Segmentation

The process of dividing a market into groups based on wants, needs, common interests and behaviors, and demands.

Target Customers

Individuals whose characteristics make them more likely to purchase a product or service.

Customer Profile

A fictional representation of a business's target customer.

Customer Acquisition Cost

The marketing cost of acquiring a new customer; calculated by dividing the total marketing, advertising, and sales cost of acquiring customers by the total number of customers acquired.

Customer Lifetime Value

The estimated amount of money that a customer will spend on a business's products and services over the course of the customer business relationship.

Referral

An existing customer's recommendation of a business to a potential customer.

Data Breach

An event in which data is stolen and sold or used for criminal purposes.

Identity Theft

The fraudulent use of someone's data to impersonate them and access their bank accounts, borrow money, or obtain services such as healthcare or phone services.

Consumer Behavior

The set of selection, purchase, and consumption activities consumers use to address their needs and wants.

Personal Factors

Consumer characteristics that help to determine what individuals need and want, as well as what they have the ability to buy.

Psychological Factors

Mental and emotional processes that influence what consumers feel is important to buy.

Sociological Factors

Social and cultural influences that help determine what consumers find appropriate, desirable, and acceptable to buy.

Situational Factors

Temporary influences specific to the consumer's circumstances or conditions that affect purchasing decisions.

Purchasing Patterns

Habits or trends in consumer behavior over time.

Consumer Psychology

The study of how and why consumers make purchasing decisions.

The Scarcity Principle

The idea that consumers want things more when they are perceived as rare.

The Authority Principle

The idea that consumers are more likely to buy something if it is endorsed by an authority figure.

The Consensus Principle

The idea that consumers are motivated to buy when their social group is in general agreement about the desirability of a product.

The Liking Principle

The idea that consumers are more inclined to make purchases from people they like or can relate to.

The Reciprocity Principle

The idea that consumers feel more obligated to buy something when the seller gives them something of value.

The Consistency Principle

The idea that consumers are attracted to products that are consistent with their self-image, values, and commitments.

The Unity Principle

The idea that consumers are motivated to purchase a product by feelings of belonging to a group that purchases that product.

Market Research

The process of collecting and interpreting information about consumer demand, competitors, and market trends.

Quantitative Data

Information expressed using numbers.

Feasibility

Whether a company can offer a product given the limits of existing legal and regulatory requirements, available resources, time, and technology.

Viability

Whether a product can offer intended customers enough value to be profitable.

Qualitative Data

Information expressed through words or images.

Primary Source

An original source of information directly collected by the researcher.

Secondary Source

Information that was not collected by the researcher.

Business Hypothesis

A set of assumptions about products, customers, or markets.

Hypothesis Testing

The process of using data to evaluate the validity of an assumption or prediction.

Survey

A mechanism for collecting information from a group by asking questions.

Focus Group

A small group of people assembled to provide qualitative data about a good, service, or idea.

Experiment

A procedure carried out under controlled conditions that is used to test the validity of a hypothesis.

A/B Testing

A type of experiment in which researchers compare responses to two or more versions of a product, promotion, or pricing strategy.

Stacked Bar Chart

A bar chart in which each bar is divided into segments, whose heights or lengths represent the contributions of subcategories to the whole category.

Line Graph

A chart with straight lines connecting data points that represent the value of some measure over time.

Pie Chart

A circular diagram divided into slices, the sizes of which show how various categories contributed to the total of what is being measured.

Data Visualization

The representation of data using charts, graphs, maps or diagrams.

Bar Chart

A data display for multiple categories, using rectangular bars whose heights or lengths indicate values for a measure.

Product

A good or service that a business offers to meet consumer needs and wants.

Product Development

The process of creating, launching, and continuously improving a new or existing product to meet customer needs.

Ideation

The creative process of generating new ideas.

Validation

The process of verifying that an idea solves a problem for consumers, is realistic to provide, and has the potential to generate profit.

Product-Market Fit

A state achieved when a product satisfies a strong, real-world demand in a target market and drives sustainable growth.

Brand

The identity of a product or business that distinguishes it from its competitors.

Product Life Cycle

The succession of stages a product goes through, from its introduction to its eventual decline and withdrawal from the market.

Introduction Stage

The stage of the product life cycle when a product is first launched into the market.

Growth Stage

The stage of the product life cycle when sales volume and revenue increases rapidly.

Maturity Stage

The stage of the product life cycle when a product's sales reach their peak and level off.

Decline Stage

The stage of the product life cycle when a product experiences falling sales and revenue.