Chapter 11

Chapter 11: Product, Price, and Place
Part 1: Content Review

Matching
Choose the letter of the correct term for each definition.
Terms:
A. intangible
B. warranty
C. quality
D. guarantee
E. price floor
F. loss leader
G. markup
H. base price
I. e-tailers
J. supply chain
1. Pricing an item much lower than the current market price or the cost of acquiring the product.
Answer: loss leader
2. The general price at which the company expects to sell the product.
Answer: Base price
3. Something that cannot be touched.
Answer: intangible
4. The minimum price set by the government for certain goods and services that it thinks are
being priced too low.
Answer: price floor
5. A written document that states the quality of a product with a promise to correct certain
problems that might occur.
Answer: warranty
6. The amount added to the cost to determine the selling price.
Answer: markup
7. A promise that a product has a certain quality or will perform in a certain way.
Answer: guarentee
8. Retailers that sell products through websites.
Answer: e-tailers
9. The businesses, people, and activities involved in turning raw materials into products and
delivering them to end users.
Answer: supply chain
10. An indicator of a product’s excellence.
Answer: quality
Multiple Choice
Choose the letter of the correct answer to each question.
1. Which of the following is a characteristic of a service?
A. Can be stored
B. Can be repeated in exactly the same way
C. Mass produced
D. Intangible
Answer: D
2. Which of the following is an example of a basic category of consumer product?
A. Convenience good
B. Process material
C. Component part
D. Raw materials
Answer: A
3. Which of the following is not a business product category in the business-to-business (B2B)
market?
A. Raw materials
B. Process materials
C. Major equipment
D. Shopping goods
Answer: D
4. The price of a good or service must _____.
A. be lower than what customers are willing to pay
B. be below any government price floor
C. cover the cost of producing and selling the product
D. not be below the manufacturer’s suggested retail price (MSRP)
Answer: C
5. Which of the following is an example of a pricing objective?
A. Minimize cost
B. Minimize profit
C. Maximize profit
D. Minimize the product life cycle
Answer: C
6. During which stage of the product life cycle are the sales and prices of products stable?
A. Introduction
B. Growth
C. Maturity
D. Decline
Answer: C
7. A product starts making a profit after reaching the _____.
A. growth stage of the product life cycle
B. break-even point
C. price ceiling
D. mass market
Answer: B
8. The path of selling goods or services directly from a manufacturer to end users without using
intermediaries is the _____.
A. supply chain
B. direct channel
C. indirect channel
D. pipeline
Answer: B
9. Which is not a basic type of product created by a producer?
A. Natural resources
B. Transportation
C. Agricultural products
D. Finished goods
Answer: B
10. Buyers and sellers are brought together by _____.
A. agents
B. wholesalers
C. distributors
D. rack jobbers
Answer: A
Completion
Choose the word(s) that best completes each of the following statements.
1. The _____ price is the amount a customer pays for a product.
Answer: selling
2. The _____ is the stages a product goes through from its beginning to end.
Answer:
3. A reduced per-item price for larger numbers of an item purchased is a(n) _____.
Answer:
4. The practice of _____ is advertising one product with the intent of persuading customers to
buy a more expensive item when they arrive in the store.
Answer:
5. The practice of setting very low prices to remove competition is _____.
Answer:
6. Raising prices on certain kinds of goods to an excessively high level during an emergency is
_____.
Answer:
7. The physical movement of products through the channel of distribution is _____.
Answer:
8. Companies that organize shipments are _____.
Answer:
9. A(n) _____ purchases large amounts of goods directly from manufacturers, stores them, and
then resells in smaller quantities to various retailers.
Answer:
10. The process of separating a large quantity of goods into smaller quantities is _____.
Answer:

Chapter 11

Uploaded by

Copyright:

Available Formats

Chapter 11

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 11

Uploaded by

Copyright:

Available Formats

Chapter 11: Product, Price, and Place

Part 1: Content Review

You might also like