ConsumerConnect explains

Web Editor | ConsumerConnect

ConsumerConnect presents to you a list of common consumer relations, management, law and protection terms you may come across when you are buying products and services, or securing a loan in various economies in recent times.

With these explanations by your consumer-oriented publication, you can also increase your consumer-related terminology. After all, everyone is a consumer. Please, enjoy the reading.

Draft: A debt instrument drawn by a bank on itself. It is issued at the request of a customer who wishes to transfer money from his account to that of another person or for cash payable at another location.

24/7: Referring to operations that are conducted 24 hours a day, 7 days a week.

Hyperinflation: Inflation that is out of control to the point that prices rise rapidly as currency loses its value.

Electronic Funds Transfer (EFT): Another important component of the payments system, especially in the developed countries, is the electronic funds transfer. It involves the use of computers to transfer large sums of money. The efficient operation of this mode of payment depends critically on the reliability of telecommunications and electricity supply.

Landed Cost: Cost of product plus relevant logistics costs such as transportation, warehousing, handling, etc.

Market Demand: An estimated demand for a product/service within a given market demographic and time period.

Warranty: An obligation or guarantee that a product or service sold is as factually stated or legally implied by the seller. Oftentimes, warranties provide a specific remedy, such as repair or replacement, in the event the product or service fails to meet the warranty.

Market Intelligence: The process of gathering and analysing information about a company’s market to better understand customer’s wants and needs and to identify possible threats and opportunities to the company.

Market Share: The portion of the overall market demand for a specific product or service which is provided by any single provider or supplier.

Shareholder Value: Combination of profitability (revenue and costs) and invested capital (working capital and fixed capital).

Tariff: A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.

Social Responsibility: The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of that of the local community and society at large. It is responsible production, socially responsible labour relations, community involvement, environmental cognizance, and sustainability.

Fast Moving Consumer Goods (FMCGs): Fast Moving Consumer Goods are packaged commercial products that are consumed through use. They include pre-packaged food and drinks, alcohol, health and beauty items, tobacco products, paper products, household cleansers and chemicals, animal care items, anything that we need, can buy right off the shelf, and use up through daily living.

Dangerous Goods: Articles or substances capable of posing significant health, safety, or environmental risk, and that ordinarily require special attention including packaging and labelling when stored or transported. They are also referred to as hazardous goods or materials.

Consumer Experience: Consumers’ perception of their experience at various touch-points across their lifecycle with an organisation. Please note that it is the “perception” of customers and hence, is based on their experience of the product/service.

Letter of credit: An international business document that assures the seller that payment will be made by the bank issuing the letter of credit upon fulfillment of the sales agreement.

Inventory: Components, raw materials, work in process, finished goods and supplies required for the creation of goods and services; it can also refer to the number of units and/or value of the stock of goods held by a company.

Electronic Commerce (E-Commerce): Refers to conducting business electronically via traditional EDI technologies, or online via the Internet. In the traditional sense of selling goods, it is possible to do this electronically because of certain software programs that run the main functions of an e-commerce Web site.

Electronic Funds Transfer (EFT): Refers to the transactions and related computer-based systems used to perform financial (typically banking) transactions between organisations and accounts electronically.

Consumer-centric: Creating a positive consumer experience at the point of sale and post-sale. A consumer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.

Counterfeit: It is an imitation of a document, product or its packaging that is made with the intent to deceptively represent the item as the genuine article.

Cartel: A group of organisations which would normally be considered competitive, but who instead have an agreement to cooperate in an area of endeavor in an effort to improve the position of the group.

Deregulation: Revisions or complete elimination of economic regulations controlling transportation.

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