C

calculation context

A configuration setting that forecasts a promotion in a specific context in order to account for historical levels of promotion on non-promoted products.

cannibalization

The negative effect on the sale of a product when a consumer purchases one product instead of another. For example, when a new flavor of yogurt is introduced the increased sales of the new flavor affect the sales of the other flavors of yogurt.

A discount of a fixed dollar amount on the price of a case of a product. For example, the manufacturer offers a reduction in the price per case of product in order to offload inventory quickly.

The volume of a product when packed in a case form.

The manufacturer's cost of a product in case form.

The number of units of a product when packed in case form.

case volume lift percentage

The percentage of cases that will be sold as a result of a promotion.

A group within a system of classification whose contents share similar properties.

category management

The process of determining the price, promotions, assortment, and the shelving of a product category.

category manager

A person responsible for all merchandising activities for a category of products, including price, promotion, placement, and assortment.

All promotions for one category that intersect in time with a specified date range.

A branded collection of stores with a single owner.

The user interface application installed at the customer site.

client product key

The customer's unique SKU identifier for this product.

See loyalty card program.

A number representing the relationship between a dependent variable (for example, sales volume or share) and an independent variable (for example, base price or discount).

See cost of goods sold.

comparative shopping (comp shop)

The act of verifying the price of a product or service of a competitor.

competitive price

A product price that is perceived to be a good value compared to what the competition is charging for the same product.

competitive product

A product that is sold profitably and is able to maintain its place within a market of similar products.

A retailer who is identified when price matching an item, and who may be offering the item at a lower price than that offered by the corresponding enterprise.

competitor price rule

A constraint imposed on the price of a product or service in order to stay within the price range of a retail competitor.

complementary product

An item that a consumer buys because it is related to another product. For example, consumers who buy hot dogs will usually buy hot dog buns.

See comparative shopping.

consideration set

The set of brands that a consumer considers when making a product purchase decision.

See business rule.

An individual who purchases products or services from an enterprise.

consumer demand model

A system of equations that predicts how much consumers will buy depending on factors such as price, seasonality, and promotions.

consumer loyalty

The affinity that a consumer has for a product or a retailer that makes them more likely to purchase a specific product, or shop at a specific store.

consumer response model

See consumer demand model.

An abstracted sales unit that can aggregate multiple unique UPCs into what a consumer considers a single item. For example, different UPCs for the various brandings of the same product can be linked by a consumer unit.

contribution margin

The remaining dollar amount in an adjusted gross margin after variable costs are subtracted.

The amount of money paid to a manufacturer for a product.

A collection of products with similar or related costs.

A subset of a cost class.

cost of capital

The amount of money associated with carrying merchandising inventory.

cost of goods sold (COGS)

The amount of money that a retailer pays a manufacturer for a product.

The highest-level category to which costs are assigned in budgeting and accounting, for example, hardware, software, people, accommodation, external and transfer.

See cumulative quantity discount.

cross elasticity

A measure of relatedness among the purchase of products that is expressed in terms of a numeric value. The relationship is expressed by a positive value if the products are related and a negative value if they are unrelated.

cross elasticity of demand

See cross elasticity.

cumulative quantity discount (CQD)

An allowance that varies with volume. For example, the retailer will receive a payment of $1.00 per case for the first 1000 cases, or $2.00 per case for the next 1000 cases.

A person or organization, internal or external to the producing organization, who takes financial responsibility for the system. In a large system this may not be the user. The customer is the ultimate recipient of the developed product and its artifacts.

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