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Brand and Consumer Economics glossary

In one line

129 terms from Brand and Consumer Economics, each defined in a sentence or two, with a link to the calculator that works the number out where one exists.

A4
Advocacy

Customers recommending you unprompted.

Aided Awareness

Recognising you from a list. Much easier, and much cheaper to buy.

Anchor Price

A number shown first that shapes everything judged after it.

Awareness Set

Every brand they know of in the category.

B28
Brand Associations

What comes to mind alongside your name.

Brand Awareness

Whether people know you exist.

Brand Codes

The consistent elements that make advertising recognisably yours.

Brand Consideration

Being on the shortlist when someone is choosing.

Brand Consistency

Repeating the same assets long enough for them to stick.

Brand Differentiation

What makes you not interchangeable. Usually smaller than the marketing team believes.

Brand Equity

The commercial value of being known and preferred. Shows up as lower acquisition cost over time.

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Brand Health

A tracking measure of whether all of that is improving or slipping.

Brand Identity

The version you intend to project.

Brand Image

How people actually see you, as opposed to how you describe yourself.

Brand Interest

Attention paid to you as a named entity rather than a category.

Brand Loyalty

Choosing you when alternatives are available and equal.

Brand Marketing

Building memory and preference rather than chasing a click today.

Brand Personality

The character traits people attach to you.

Brand Positioning

The place you want to occupy in someone head relative to alternatives.

Brand Preference

Being the one they want, before price enters the conversation.

Brand Recall

Remembering you when the need arises rather than when the logo appears.

Brand Recognition

Identifying you when you are in front of them.

Brand Relevance

Whether you fit the situation they are in.

Brand Salience

How readily you come to mind in a buying situation. The measure that predicts share best.

Brand Search Lift

Increase in searches for your name caused by advertising. The fastest usable proxy for brand effect.

Brand Strategy

The decisions about who you are for and what you stand against.

Brand Strength

A composite read on awareness, preference and loyalty.

Brand Switching

Customers moving to a competitor.

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Brand Trust

Belief you will deliver what you promised.

Brand Value

The financial worth of the brand as an asset.

Branded Demand

Demand that arrives already knowing who you are. Cheap to convert, expensive to have created.

C26
Category Awareness

Knowing the category exists at all. The constraint in genuinely new markets.

Category Entry Point

The situation that triggers someone to start looking. The more you are linked to, the more you sell.

Category Growth

How fast the whole category is expanding.

Category Intent

Interest in the category without a brand chosen yet.

Category Share

Share within a defined product category.

CES

Short for customer effort score.

Charm Pricing

Ending prices in nine. Still works, and works less on premium goods.

Choice Set

The final options at the moment of deciding.

Commercial Intent

A query signalling money will change hands. The kind worth bidding on.

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Competitive Intensity

How hard rivals are fighting. Drives your costs more than your own decisions do.

Competitive Pricing

Setting price by what rivals charge.

Concentration Ratio

The combined share of the largest players.

Consideration Set

The brands someone is genuinely choosing between. Usually three or fewer.

Consumer Intent

What someone is trying to accomplish right now.

Consumer Need State

The underlying want driving the search.

Consumer Surplus

The gap between what someone would have paid and what they did. Money you left on the table.

Cost-Plus Pricing

Adding a markup to cost. Simple, and it ignores what the customer would have paid.

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Cross-Price Elasticity

How your volume moves when a competitor changes price.

CSAT

Short for customer satisfaction score.

Customer Effort Score

How hard the customer had to work. Predicts churn better than satisfaction does.

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Customer Experience

The whole of how it feels to deal with you.

Customer Inertia

People staying because moving is effort, not because they are happy.

Customer Loyalty

Continued buying, whatever the reason behind it.

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Customer Satisfaction

How happy customers say they are with a specific interaction.

Customer Switching

The same behaviour from your side of the ledger.

CX

Short for customer experience.

D8
Decision Criteria

What they are judging on. Often not what you optimised for.

Demand Destruction

Demand permanently lost rather than delayed.

Demand Elasticity

The general responsiveness of demand to any change.

Demand Expansion

Creating want that did not exist.

Demand Suppression

Something reducing demand, from price rises to bad press.

Demand Transfer

Demand shifting between brands or products rather than disappearing.

Distinctive Assets

Colours, sounds and shapes that identify you without the name. Cheap to own, expensive to change.

Dynamic Pricing

Prices moving with demand, time or inventory.

E1
Evoked Set

The brands that came to mind unprompted.

H3
Habit Formation

Turning a purchase into a routine. The cheapest retention there is.

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Habitual Purchase

Buying without reconsidering the choice.

HHI

The Herfindahl-Hirschman Index, a standard measure of concentration.

I3
Income Effect

Buying patterns shifting because purchasing power changed.

Income Elasticity

How demand shifts as customer incomes change.

Informational Intent

A query looking for an answer, not a product.

L1
Loyalty

Repeated choosing, whether from preference or from inertia.

M8
Market Concentration

How much of the market a few players hold.

Market Development

Opening new segments or geographies.

Market Expansion

Growing the size of the market rather than your slice of it.

Market Growth

The same at market level.

Market Penetration

Winning more of an existing market.

Market Saturation

The point where nearly everyone who will buy already has.

Market Share

Your share of category sales.

Mental Availability

How easily you get thought of across different buying occasions.

N6
Need State

The same, shortened.

Net Promoter Score

A single-question loyalty measure. Widely used, weakly predictive on its own.

Non-Branded Demand

Demand for the category, where you still have to win the choice.

NPS

Short for net promoter score.

O1
Own-Price Elasticity

How your own volume responds to your own price.

P12
Penetration Pricing

Pricing low to win share, then raising it. Hard to reverse once customers anchor.

Personalized Pricing

Different prices for different people. Effective, and reputationally dangerous.

Physical Availability

How easily you can be bought once thought of. Distribution beats persuasion more often than marketers admit.

Premium Pricing

Charging above the category to signal quality.

Price Anchoring

Deliberately setting that reference, usually with a higher option.

Price Competition

Competing primarily on price. The fastest way to destroy category margin.

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Price Elasticity

How much volume changes when price changes. Test it rather than guessing.

Price Perception

What people think you cost, which can differ from what you charge.

Price Sensitivity

How much demand moves when price moves.

Psychological Pricing

Any pricing built around perception rather than cost.

Purchase Intent

Readiness to buy.

Purchase Occasion

The specific moment a purchase gets made.

Q1
Quality Perception

What people assume about quality, frequently inferred from price.

R5
Reference Price

The price they carry in their head as normal.

Referral Rate

The share of customers who bring someone else.

Relative Market Share

Your share against the largest competitor rather than the whole market.

Research Intent

A query comparing options before deciding.

Retention Economics

What keeping a customer costs against what losing one does.

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S11
SAM

Serviceable addressable market. The part of the market you can actually reach.

Share of Demand

Your share of the demand that exists, captured or not.

Share of Shelf

Your share of physical or digital display space.

Share of Spend

Your share of total category advertising spend.

Share of Wallet

Your share of what a customer spends in the category, not of all customers.

SOM

Serviceable obtainable market. What you could realistically win.

SOS

Share of search, shortened.

SOV

Share of voice. Your share of category advertising presence.

Substitution Effect

Buyers switching to an alternative when relative prices move.

Switching Cost

What it costs a customer to leave, in money, effort or risk. Your best defence against churn.

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T3
TAM

Total addressable market. Everyone who could theoretically buy. Usually inflated in pitch decks.

Top-of-Mind Awareness

Being the first name mentioned in a category.

Transactional Intent

A query ready to act immediately.

U4
Unaided Awareness

Naming you without prompting. The hardest and most valuable form.

Usage Occasion

The moment the product gets used, which is often not when it was bought.

User Experience

How the product or site feels to use specifically.

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UX

Short for user experience.

V2
Value Perception

Whether it feels worth it. The ratio between the two above.

Value Pricing

Pricing against the value delivered rather than the cost incurred.

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W2
Willingness to Pay

The most someone would hand over before walking away.

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Word of Mouth

Recommendation spreading between people. Unmeasurable, and often the largest channel you have.