Glossary - Agribusiness Management - page 423

cycle-time-to-market (also called quick response) has become a central strategic goal
for many agribusinesses.
days sales in accounts receivables ratio A fi nancial ratio measuring effi ciency; the aver-
age collection period of accounts receivables; (accounts receivable / net sales) × 360.
d ealer-distribution system A marketing channel in which manufacturers sell their prod-
ucts to dealers or retailers, who, in turn, sell products in their own local market.
debt-to-asset ratio A fi nancial ratio measuring solvency; shows the proportion that lend-
ers are contributing to the total capital of the fi rm (total liabilities / total assets).
d ebt-to-equity ratio A fi nancial ratio measuring the use of debt; total liabilities divided by

owner's equity.
decision-making process A logical procedure for identifying a problem, discovering
alternative solutions, analyzing them, and choosing a course of action.
d ecline stage A period in the product life cycle in which sales decline, sometimes
rapidly.
delegation downward principle In organizational structure, the idea that authority should
be delegated downward to the lowest level at which the decision can be made compe-
tently.
Delphi approach A tool for developing forecasts in which a panel of experts is asked
to develop a forecast for an area of interest; the estimates are pooled, reviewed and
any differences noted; and the process is repeated until a consensus forecast is
achieved.
demand The quantity of a product or service that consumers are willing to buy at different
prices; the relationship between price and the quantity demanded.
d emand curve A graphic or algebraic representation of a product's demand.
demand elasticity A measure showing the relative change in quantity demanded as price
changes; refl ects the responsiveness of quantity demanded to a given change in price.
democratic leadership A leadership style, also called participative leadership, which
favors a shared decision-making process, with the leader maintaining the ultimate
responsibility for decisions while actively seeking signifi cant input from followers.
d emographic segmentation A market segmentation approach which groups customers
based on demographics such as age, income, size of household, education, number of
children, type of employment, etc.
derived demand A situation where demand for one product or service (usually an input)
is based on the demand for another product or service (usually the fi nal product).
developing alternatives A step in the planning process; after performance objectives have
been set, the process of generating different ways of achieving the objectives.
d evelopment stage The stage early in the product life cycle in which the market is ana-
lyzed, and both the product and the broader marketing strategy are developed.
d ifferential advantage One of two generic business strategies; involves offering buyers
unique products and services which add value for the buyer but are unavailable from
other fi rms.
d ifferentiation value In pricing, the perceived value of the product's unique attributes.
d iminishing marginal utility A law of economics that states that as more and more of a
product is consumed, the extra satisfaction of consuming an additional unit actually
declines; translates directly into the inverse relationship between price and the quantity
demanded.
direct exporting Mode of entry in international business in which the agribusiness itself
handles the details of exporting their products.