Glossary - Agribusiness Management - page 437

points Service charges, based on the face value of the loan, that are paid to the lending
institution to secure the loan.
policy A rule or guideline that sets the boundaries for handling specifi c situations that
occur frequently.
politics The manner in which power and status are used in an organization;
involves the manipulation of people and situations to accomplish a particular
goal.
p osition The specifi c market space, image, set of activities, and / or products and services
that a fi rm wants to be known for among its target customers.
p ositioning The process of creating the desired image or position in the customer's or
prospect's mind.
positive conditional strokes In interpersonal communication , any form of interaction
that while positive, the acceptance of the other person is conditional on some expected
behavior.
positive unconditional strokes In interpersonal communication , any form of interac-
tion that conveys the spoken or implied message, “I like you…you're OK with me,”
with no conditions on the acceptance.
p otential p roduct One component of the total product concept; the product as it can
become; the next benefi t that customers will seek from the fi rm; and how the
product-service-information bundle will be managed to add even more value for
customers.
power The ability to control another person's behavior.
practices Activities and processes as they are actually performed in the agribusiness; may
confl ict with policies and procedures.
preferred stock A type of ownership position in a corporation that does not carry the
privileges of voting for directors, but has a preferred position in receiving dividends and
in redemption in the case of liquidation.
prepaid expenses Current assets that represent prepayment of an item or service that will
be consumed or used during a future accounting period at which point it will become an
expense.
present value The current value of a stream of payments to be to be made or received over
some specifi ed period of time in the future.
p resentation In selling, the heart of the sales call in which the primary objective is to
present the product or service so effectively that the customer will see it as satisfying a
particular need.
prestige pricing A pricing strategy that appeals to an elite image and plays to the attitude
that price and quality go together: “You get what you pay for.”
p retesting In market research, evaluating research questions before actually using them
with a group of respondents to insure that the questions are effective at gathering the
desired information.
prevention costs In total quality management, the costs associated with stopping defects
and errors before they happen.
price The value of an item or service in monetary terms.
p rice discovery The process in which producers and consumers meet in the marketplace,
and the equilibrium quantity and price is determined.
price elastic One of the three levels of price elasticity of demand; price elasticity of
demand in absolute terms is greater than 1.0; or a small change in price will result in a
relatively large change in the quantity demanded.