PBMF Chapter 11
Identify examples of wholesalers.
merchant wholesalers, drop shippers, rack jobbers, and manufacturer's sales branches.
In what four ways are services different from goods?
Services are considered products, but they are different from goods because they are intangible, inseparable, variable, and perishable.
Identify seven factors that influence the price of a product.
company goals, expenses, customer perception, competition, supply and demand, economic conditions, and product life cycle.
List the three basic categories of consumer products.
convenience goods, shopping goods, and specialty goods
Give examples of pricing strategies used for the B2B market.
cash discount, promotional discount, quantity discount, seasonal discount, and trade discount.
List three basic types of product that come from producers.
natural resources, agricultural products, and finished goods.
Packaging
_________________ protects products until customers are ready to use them
What is the formula for calculating a percentage markup?
product cost × markup percentage = dollar amount of markup product cost + dollar amount of markup = selling price
What is the purpose of loss-leader pricing?
to draw customers into a business by advertising a product for a very low price.
Describe the three functions of intermediaries.
transactional, logistical, and facilitating functions. The transactional function is typically the sales and marketing activities for the business. The logistics function is physically moving products from the manufacturers to distributors. The facilitating function is the final part of the supply chain.
How can a price floor cause a surplus?
If the price floor is set higher than the market price, a surplus happens because consumers will not buy the higher-priced products.
Explain the three general quality levels of products.
Premium quality is the highest level of quality available in products. Moderate quality is the middle range of product quality. Value quality is an adequate level of product quality.
Selling
The ___________ price is the amount a customer pays for an item.
What is the goal of distribution?
The goal is to provide the best distribution services for the lowest cost.
Quality
__________ is an indicator of a product's excellence.
Variable
__________ means each service is almost always unique.
Price Floor
____________ are minimum prices set by the government for certain goods and services that it thinks are being priced too low
Multi-Channel Retailer
____________ are those that sell products through both brick-and-mortar stores and online sites
Pipeline
____________ is a line of connected pipes that are used for carrying liquids and gases over a long distance.
Product Depth
____________ is the number of product items within a product line.
Product Planning
_____________ is the process of deciding which products will appeal to the target market.
Manufacturer's Suggested Retail Price MSRP
______________ is the price recommended by the manufacturer.
Psychological Pricing
_______________ strategies are pricing techniques that create an image of a product and entice customers to buy.
Product Line
________________ is a group of closely related products within the product mix.
Price Gouging
________________ is the raising of prices on certain kinds of goods to an excessively high level during an emergency.
Predatory Pricing
_________________ is the practice of setting very low prices to remove competition.
Trade Industry
_____________________ provides labor based on specialized knowledge and skills.
List the three categories of product elements.
features, usage, and protection.
What are the six categories of business products?
raw materials, process materials, component parts, major equipment, office equipment and supplies, and business services.
What are the six main methods for the transportation of goods?
road, rail, air, water, pipeline, and digital.