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BA 317 Exam 1 Study Guide: Vocab

by: Amy Notetaker

BA 317 Exam 1 Study Guide: Vocab BA 317

Marketplace > University of Oregon > Business Administration > BA 317 > BA 317 Exam 1 Study Guide Vocab
Amy Notetaker
GPA 3.69
Mkt: Valu for Customer
Jessyca Lewis

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BA 317 Exam 1 Study Guide that has a focus on vocabulary
Mkt: Valu for Customer
Jessyca Lewis
Study Guide
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This 12 page Study Guide was uploaded by Amy Notetaker on Sunday September 6, 2015. The Study Guide belongs to BA 317 at University of Oregon taught by Jessyca Lewis in Fall 2014. Since its upload, it has received 77 views. For similar materials see Mkt: Valu for Customer in Business Administration at University of Oregon.


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Date Created: 09/06/15
Chapter 1 exchange people giving up something in order to receive something they would rather have production orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace sales orientation the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits marketing concept the idea that the social and economic justification for an organization s existence is the satisfaction of customer wants and needs while meeting organizational objectives market orientation a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product it is synonymous with the marketing concept societal marketing orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s longterm best interests customer value the relationship between benefits and the sacrifice necessary to obtain those benefits customer satisfaction customers evaluation of a good or service in terms of whether it has met their needs and expectations relationship marketing a strategy that focuses on keeping and improving relationships with current customers empowerment delegation of authority to solve customers problems quickly usually by the first person the customer notifies regarding a problem teamwork collaborative efforts of people to accomplish common objectives customer relationship management CRM a companywide business strategy designed to optimize profitability revenue and customer satisfaction by focusing on highly defined and precise customer groups Chapter 2 strategic business unit SBU a subgroup of a single business or collection of related businesses within the larger organization market penetration a marketing strategy that tries to increase market share among existing customers market development a marketing strategy that entails attracting new customers to existing products product development a marketing strategy that entails the creation of new products for present markets diversification a strategy of increasing sales by introducing new products into new markets portfolio matrix a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate star in the portfolio matrix a business unit that is a fastgrowing market leader cash cow in the portfolio matrix a business unit that generates more cash than it needs to maintain its market share problem child question mark in the portfolio matrix a business unit that shows rapid growth but poor profit margins dog in the portfolio matrix a business unit that has low growth potential and a small market share planning the process of anticipating future events and determining strategies to achieve organizational objectives in the future marketing planning designing activities relating to marketing objectives and the changing marketing environment marketing plan a written document that acts as a guidebook of marketing activities for the marketing manager mission statement a statement of the firm s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions marketing myopia defining a business in terms of goods and services rather than in terms of the benefits customers seek SWOT analysis identifying internal strengths S and weaknesses W and also examining external opportunities 0 and threats T Environmental scanning collection and interpretation of information about forces events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan Competitive advantage a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition cost competitive advantage being the lowcost competitor in an industry while maintaining satisfactory profit margins experience curves curves that show costs declining at a predictable rate as experience with a product increases productservice differentiation a positioning strategy that some firms use to distinguish their products from those of competitors competitive advantage the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition niche competitive advantage the advantage achieved when a firm seeks to target and effectively serve a small segment of the market sustainable competitive advantage an advantage that cannot be copied by the competition marketing objective a statement of what is to be accomplished through marketing activities marketing strategy the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets market opportunity analysis MOA the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments marketing mix a unique blend of product place distribution promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market four Ps product place promotion and price which together make up the marketing mix implementation the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan s objectives Chapter 3 morals the rules people develop as a result of cultural values and norms code of ethics a guideline to help marketing managers and other employees make better decisions Foreign Corrupt Practices Act FCPA a law that prohibits US corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries corporate social responsibility CSR a business s concern for society s welfare pyramid of corporate social responsibility a model that suggests corporate social responsibility is composed of economic legal ethical and philanthropic responsibilities and that the firm s economic performance supports the entire structure sustainability the idea that socially responsible companies will outperform their peers by focusing on the world s social and environmental problems and viewing them as opportunities to build profits and help the world at the same time green marketing the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment causerelated marketing the cooperative marketing efforts between a forprofit firm and a nonprofit organization Chapter 4 environmental management when a company implements strategies that attempt to shape the external environment within which it operates component lifestyles the practice of choosing goods and services that meet one s diverse needs and interests rather than conforming to a single traditional lifestyle demography the study of people s vital statistics such as age race and ethnicity and location Generation Y people born between 1979 and 1994 Generation X people born between 1965 and 1978 baby boomers people born between 1946 and 1964 purchasing power a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas in ation a measure of the decrease in the value of money expressed as the percentage reduction in value since the previous year recession a period of economic activity characterized by negative growth which reduces demand for goods and services basic research pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon applied research research that attempts to develop new or improved products Consumer Product Safety Commission CPSC a federal agency established to protect the health and safety of consumers in and around their homes Food and Drug Administration FDA a federal agency charged with enforcing regulations against selling and distributing adulterated misbranded or hazardous food and drug products Federal Trade Commission FTC a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce Chapter 5 gross domestic product GDP the total market value of all final goods and services produced in a country for a given time period job outsourcing sending US jobs abroad multinational corporation a company that is heavily engaged in international trade beyond exporting and importing capital intensive using more capital than labor in the production process global marketing standardization production of uniform products that can be sold the same way all over the world multidomestic strategy when multinational firms enable individual subsidiaries to compete independently in domestic markets Mercosur the largest Latin American trade agreement includes Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay Peru Uruguay and Venezuela Uruguay Round an agreement to dramatically lower trade barriers worldwide created the World Trade Organization World Trade Organization WTO a trade organization that replaced the old General Agreement on Tariffs and Trade GATT General Agreement on Tariffs and Trade GATT a trade agreement that contained loopholes enabling countries to avoid tradebarrier reduction agreements North American Free Trade Agreement NAFTA an agreement between Canada the United States and Mexico that created the world s thenlargest free trade zone Central America Free Trade Agreement CAFTA a trade agreement instituted in 2005 that includes Costa Rica the Dominican Republic El Salvador Guatemala Honduras Nicaragua and the United States European Union EU a free trade zone encompassing twentyseven European countries World Bank an international bank that offers lowinterest loans advice and information to developing nations International Monetary Fund IMF an international organization that acts as al ender of last resort providing loans to troubled nations and also works to promote trade through financial cooperation Group of Twenty G20 a forum for international economic development that promotes discussion between industrial and emergingmarket countries on key issues related to global economic stability exporting selling domestically produced products to buyers in other countries buyer for export an intermediary in the global market who assumes all ownership risks and sells globally for its own account export broker an intermediary who plays the traditional broker s role by bringing buyer and seller together export agent an intermediary who acts like a manufacturer s agent for the exporter the export agent lives in the foreign market licensing the legal process whereby a licensor allows another firm to use its manufacturing process trademarks patents trade secrets or other proprietary knowledge contract manufacturing private label manufacturing by a foreign company joint venture when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity direct foreign investment active ownership of a foreign company or of overseas manufacturing or marketing facilities oating exchange rates a system in which prices of different currencies move up and down based on the demand for and the supply of each currency dumping the sale of an exported product at a price lower than that charged for the same or a like product in the home market of the exporter countertrade a form of trade in which all or part of the payment for goods or services is in the form of other goods or services blog a publicly accessible Web page that functions as an interactive journal where readers can post comments on the author s entries Chapter 6 need recognition result of an imbalance between actual and desired states want recognition of an unfulfilled need and a product that will satisfy it stimulus any unit of input affecting one or more of the five senses sight smell taste ouch hearing internal information alling past information stored in the memory external information search the process of seeking information in the outside environment nonmarketingcontrolled information source a product information source that is not associated with advertising or promotion marketingcontrolled information source a product information source that originates with marketers promoting the product evoked set consideration set a group of brands resulting from an information search from which a buyer can choose cognitive dissonance inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions involvement the amount of time and effort a buyer invests in the search evaluation and decision processes of consumer behavior routine response behavior the type of decision making exhibited by consumers buying frequently purchased lowcost goods and services requires little search and decision time limited decision making the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category extensive decision making the most complex type of consumer decision making used when buying an unfamiliar expensive product or an infrequently bought item requires use of several criteria for evaluating options and much time for seeking information culture the set of values norms attitudes and other meaningful symbols that shape human behavior and the artifacts or products of that behavior as they are transmitted from one generation to the next value the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct subculture a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group social class a group of people in a society who are considered nearly equal in status or community esteem who regularly socialize among themselves both formally and informally and who share behavioral norms reference group all of the formal and informal groups in society that in uence an individual s purchasing behavior primary membership group a reference group with which people interact regularly in an informal facetoface manner such as family friends and coworkers secondary membership group a reference group with which people associate less consistently and more formally than a primary membership group such as a club professional group or religious group aspirational reference group a group that someone would like to join norm a value or attitude deemed acceptable by a group nonaspirational reference group a group with which an individual does not want to associate opinion leader an individual who in uences the opinions of others socialization process how cultural values and norms are passed down to children personality a way of organizing and grouping the consistencies of an individual s reactions to situations selfconcept how consumers perceive themselves in terms of attitudes perceptions beliefs and selfevaluations ideal selfimage the way an individual would like to be perceived real selfimage the way an individual actually perceives himself or herself perception the process by which people select organize and interpret stimuli into a meaningful and coherent picture selective exposure the process whereby a consumer notices certain stimuli and ignores others selective distortion a process whereby a consumer changes or distorts information that con icts with his or her feelings or beliefs selective retention a process whereby a consumer remembers only that information that supports his or her personal beliefs motive a driving force that causes a person to take action to satisfy specific needs Maslow s hierarchy of needs a method of classifying human needs and motivations into five categories in ascending order of importance physiological safety social esteem and self actualization learning a process that creates changes in behavior immediate or expected through experience and practice stimulus generalization a form of learning that occurs when one response is extended to a second stimulus similar to the first stimulus discrimination a learned ability to differentiate among similar products belief an organized pattern of knowledge that an individual holds as true about his or her world attitude a learned tendency to respond consistently toward a given object Chapter 7 businesstobusiness electronic commerce Bto B or B2B ecommerce the use of the Internet to facilitate the exchange of goods services and information between organizations stickiness a measure of a Web site s effectiveness calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit site reach disintermediation the elimination of intermediaries such as wholesalers or distributers from a marketing channel reintermediation the reintroduction of an intermediary between producers and users strategic alliance strategic partnership a cooperative agreement between business firms relationship commitment a firm s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely trust the condition that exists when one party has confidence in an exchange partner s reliability and integrity keiretsu a network of interlocking corporate affiliates original equipment manufacturers OEMs individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers North American Industry Classification System NAICS a detailed numbering system developed by the United States Canada and Mexico to classify North American business establishments by their main production processes derived demand the demand for business products joint demand the demand for two or more items used together in a final product multiplier effect accelerator principle phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product businesstobusiness online exchange an electronic trading oor that provides companies with integrated links to their customers and suppliers reciprocity a practice whereby business purchasers choose to buy from their own customers major equipment installations capital goods such as large or expensive machines mainframe computers blast furnaces generators airplanes and buildings accessory equipment goods such as portable tools and office equipment that are less expensive and shorterlived than major equipment raw materials unprocessed extractive or agricultural products such as mineral ore lumber wheat corn fruits vegetables and fish component parts either finished items ready for assembly or products that need very little processing before becoming part of some other product processed materials products used directly in manufacturing other products supplies consumable items that do not become part of the final product business services expense items that do not become part of a final product buying center all those people in an organization who become involved in the purchase decision new buy a situation requiring the purchase of a product for the first time modified rebuy a situation in which the purchaser wants some change in the original good or service straight rebuy a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers Chapter 8 segmentation bases variables characteristics of individuals groups or organizations geographic segmentation segmenting markets by region of a country or the world market size market density or climate demographic segmentation segmenting markets by age gender income ethnic background and family life cycle family life cycle FLC a series of stages determined by a combination of age marital status and the presence or absence of children psychographic segmentation segmenting markets on the basis of personality motives lifestyles and geodemographics geodemographic segmentation segmenting potential customers into neighborhood lifestyle categories benefit segmentation the process of grouping customers into market segments according to the benefits they seek from the product usagerate segmentation dividing a market by the amount of product bought or consumed 8020 principle a principle holding that 20 percent of all customers generate 80 percent of the demand satisficers business customers who place an order with the first familiar supplier to satisfy product and delivery requirements optimizers business customers who consider numerous suppliers both familiar and unfamiliar solicit bids and study all proposals carefully before selecting one target market a group of people or organizations for which an organization designs implements and maintains a marketing mix intended to meet the needs of that group resulting in mutually satisfying exchanges undifferentiated targeting strategy a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix concentrated targeting strategy a strategy used to select one segment of a market for targeting marketing efforts niche one segment of a market multisegment targeting strategy a strategy that chooses two or more welldefined market segments and develops a distinct marketing mix for each cannibalization a situation that occurs when sales of a new product cut into sales of a firm s existing products positioning developing a specific marketing mix to in uence potential customers overall perception of a brand product line or organization in general position the place a product brand or group of products occupies in consumers minds relative to competing offerings product differentiation a positioning strategy that some firms use to distinguish their products from those of competitors perceptual mapping a means of displaying or graphing in two or more dimensions the location of products brands or groups of products in customers minds repositioning changing consumers perceptions of a brand in relation to competing brands Chapter 9 marketing research the process of planning collecting and analyzing data relevant to a marketing decision marketing research problem determining what information is needed and how that information can be obtained efficiently and effectively marketing research objective the specific information needed to solve a marketing research problem the objective should be to provide insightful decisionmaking information management decision problem a broadbased problem that uses marketing research in order for managers to take proper actions secondary data data previously collected for any purpose other than the one at hand marketing research aggregator a company that acquires catalogs reformats segments and resells reports already published by marketing research firms research design specifies which research questions must be answered how and when the data will be gathered and how the data will be analyzed primary data information that is collected for the first time used for solving the particular problem under investigation survey research the most popular technique for gathering primary data in which a researcher interacts with people to obtain facts opinions and attitudes mall intercept interview a survey research method that involves interviewing people in the common areas of shopping malls computerassisted personal interviewing an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent s data directly into the computer computerassisted selfinterviewing an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into a computer centrallocation telephone CLT facility a specially designed phone room used to conduct telephone interviewing executive interview a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services focus group seven to ten people who participate in a group discussion led by a moderator openended question an interview question that encourages an answer phrased in the respondent s own words closedended question an interview question that asks the respondent to make a selection from a limited list of responses scaledresponse question a closedended question designed to measure the intensity of a respondent s answer observation research a research method that relies on four types of observation people watching people people watching an activity machines watching people and machines watching an activity mystery shoppers researchers posing as customers who gather observational data about a store behavioral targeting BT a form of observation marketing research that combines a consumer s online activity with psychographic and demographic profiles compiled in databases ethnographic research the study of human behavior in its natural context involves observation of behavior and physical setting experiment a method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable sample a subset from a larger population universe the population from which a sample will be drawn probability sample a sample in which every element in the population has a known statistical likelihood of being selected random sample a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample nonprobability sample any sample in which little or no attempt is made to get a representative cross section of the population convenience sample a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher for example employees friends or relatives measurement error an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process sampling error an error that occurs when a sample somehow does not represent the target population frame error an error that occurs when a sample drawn from a population differs from the target population random error an error that occurs when the selected sample is an imperfect representation of the overall population field service firm a firm that specializes in interviewing respondents on a subcontracted basis crosstabulation a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions consumer generated media CGM media that consumers generate and share among themselves scannerbased research a system for gathering information from a single group of respondents by continuously monitoring the advertising promotion and pricing they are exposed to and the things they buy BehaviorScan a scannerbased research program that tracks the purchases of 3000 households through store scanners in each research market InfoScan a scannerbased salestracking service for the consumer packagedgoods industry Neuromarketing a field of marketing that studies the body s responses to marketing stimuli Competitive intelligence CI an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors Chapter 10 convenience product a relatively inexpensive item that merits little shopping effort shopping product a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores specialty product a particular item for which consumers search extensively and are very reluctant to accept substitutes unsought product a product unknown to the potential buyer or a known product that the buyer does not actively seek product item a specific version of a product that can be designated as a distinct offering among an organization s products product line a group of closely related product items product mix all products that an organization sells product mix width the number of product lines an organization offers product line depth the number of product items in a product line product modification changing one or more of a product s characteristics planned obsolescence the practice of modifying products so those that have already been sold become obsolete before they actually need replacement product line extension adding additional products to an existing product line in order to compete more broadly in the industry brand a name term symbol design or combination thereof that identifies a seller s products and differentiates them from competitors products brand name that part of a brand that can be spoken including letters words and numbers brand mark the elements of a brand that cannot be spoken brand equity the value of company and brand names global brand a brand that obtains at least a third of its earnings from outside its home country is recognizable outside its home base of customers and has publicly available marketing and financial data brand loyalty consistent preference for one brand over all others manufacturer s brand the brand name of a manufacturer private brand a brand name owned by a wholesaler or a retailer captive brand a brand manufactured by a third party for an exclusive retailer without evidence of that retailer s affiliation individual branding using different brand names for different products family branding marketing several different products under the same brand name cobranding placing two or more brand names on a product or its package trademark the exclusive right to use a brand or part of a brand service mark a trademark for a service generic product name identifies a product by class or type and cannot be trademarked persuasive labeling a type of package labeling that focuses on a promotional theme or logo and consumer information is secondary informational labeling a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase universal product codes UPCs a series of thick and thin vertical lines bar codes readable by computerized optical scanners that represent numbers used to track products warranty a confirmation of the quality or performance of a good or service express warranty a written guarantee implied warranty an unwritten guarantee that the good or service is fit for the purpose for which it was sold Chapter 12 intangibility the inability of services to be touched seen tasted heard or felt in the same manner that goods can be sensed search quality a characteristic that can be easily assessed before purchase experience quality a characteristic that can be assessed only after use credence quality a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience inseparability the inability of the production and consumption of a service to be separated consumers must be present during the production heterogeneity the variability of the inputs and outputs of services Which causes services to tend to be less standardized and uniform than goods perishability the inability of services to be stored warehoused or inventoried reliability the ability to perform a service dependably accurately and consistently responsiveness the ability to provide prompt service assurance the knowledge and courtesy of employees and their ability to convey trust empathy caring individualized attention to customers tangibles the physical evidence of a service including the physical facilities tools and equipment used to provide the service gap model a model identifying five gaps that can cause problems in service delivery and in uence customer evaluations of service quality core service the most basic benefit the consumer is buying supplementary services a group of services that support or enhance the core service mass customization a strategy that uses technology to deliver customized services on a mass basis internal marketing treating employees as customers and developing systems and benefits that satisfy their needs nonprofit organization an organization that exists to achieve some goal other than the usual business goals of profit market share or return on investment nonprofit organization marketing the effort by nonprofit organizations to bring about mutually satisfying exchanges With target markets public service advertisement PSA an announcement that promotes a program of a federal state or local government or of a nonprofit organization


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