Competitor: a rival with whom one competes. Complements: used here to describe two products or services where an increase in cost of one item will cause a decrease in demand for another item. When the increase in price of one good causes a decrease in the quantity demanded of another good, all things being equal, the goods are considered to be complements of one another. The general rule for complementary goods or services is that the price of one good or service and the demand for the other good or service will move in the opposite directions. Compression: a situation that occurs whenever an activity or event forces demand to be pressed outward to the surrounding areas. Pressure placed on a market as a result of demand. Constrained demand: demand that is held back or confined by rules, restrictions, and availability. An example of constrained demand would be trying to book a flight using your frequent-flier mileage. Contract: binding agreement that specifies rates, terms, anticipated volume, minimum usage, and effective dates. Contingency planning: planning for unexpected events and changes either in the internal or external environment. Conversion rate: the number of calls converted from inquiry to sale. This number is usually expressed as a ratio by dividing the number of reservations booked over the number of reservation calls received. Core competencies: the central activities that an organization performs well and that differentiate it from other firms.
Cost-based method of pricing: using this method, the organization calculates the overall cost of producing the product or service. Then they simply add a markup or percentage increase to arrive at a selling price. Cost of goods sold: direct expenses in producing a good for sale. This includes variable costs but does not include indirect fixed costs such as rent, advertising, or office equipment. CRO: see central reservation office. Cross-channel behavior: behavior that occurs when a customer accesses more than one channel when making a purchase. CRS: see central reservation system. Customer-centric approach: any marketing or operational effort focused on the needs, wants and desires of an organization’s customers. Cut-off date: the date that all confirmed reservations will be released to general inventory for resale. Data mining: the process of continually digging deeper into the data captured by a marketing intelligence system. Decline stage: the stage of the product or service life cycle in which sales of the product or service are flat or falling. Both volume and prices continue to fall. Newer products or services are competing directly for customers. Unchecked decline will ultimately lead to the death of a product or service. The producer either needs to innovate or evaporate. Demand: the amount of a good or service that a purchaser is willing and able to buy for any given price at any given time.
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