20 terms

Demand and Supply separately vocab list


Terms in this set (...)

bait and switch (advertising)
the action (generally illegal) of advertising goods which are an apparent bargain, with the intention of substituting inferior or more expensive goods.
bandwagon (advertising)
a specific type of propaganda advertising technique that tries to get the target audience to jump on board, so as to not "miss out" on what everyone else is doing.
caveat emptor
the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.
a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (such as brand name) other than price
complementary goods
Items whose use is related to the use of an associated or paired item. If the price of one item rises and reduces its demand, it may reduce the demand for the paired item as well.
compound interest
the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
elastic demand
when the quantity purchased of a product responds intensively to a change in the price of the product.
emotional appeal (advertising)
a persuasion method used to create feeling-based feedback or response from the target audience. This is often used to manipulate an audience into making an non-rational purchasing decision or giving an non-rational response.
endorsement (advertising)
a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect or awareness among the people. Such people advertise for a product lending their names or images to promote a product or service.
inelastic demand
A situation in which the quantity purchased of a product does not increase or decrease correspondingly with a fall or rise in its price
latent demand
a want or need which a customer/consumer is unable to satisfy, whether due to lack of information or lack of money.
law of diminishing marginal utility
the fact that the first unit of consumption of a good or service is more rewarding and necessary than the second and subsequent units, with a continuing reduction for greater amounts.
absolute necessities; the basics of survival in a given situation
opportunity cost
the loss of potential gain from other alternatives when one alternative is chosen
stacked deck (advertising)
a propaganda technique that seeks to manipulate audience perception of an issue by emphasizing one side and repressing another. Overwhelming the audience with positive statistics also works.
subliminal (advertising)
the use of images and sounds to influence consumers' responses without their being conscious of it.
substitution goods
Different goods that, at least partly, satisfy the same needs of the consumers and, therefore, can be used to replace one another. The rise in price of one will cause a rise in demand for the other.
transference or association (advertising)
attempts to carry people's feelings about one topic or product to another topic or product. By using positive associations you already have in one area, the advertiser doesn't have to start from scratch to create those same positive associations for its product.
testimonial or plain-folks (advertising)
sales pitches attributed to ordinary citizens explaining the benefits of a given product. The "ordinary citizens" may or may not be real people; they might be actors.
desires above the basic minimum; luxuries and optional goods