Product Basics
What are the four Ps of marketing?
A. Product, popularity, promotion, and profit
B. Product, price, place, and promotion
C. Packaging, pricing, placement, and paperwork
D. Pizza, popcorn, price, and parking
B. Product, price, place, and promotion
The price recommended by the manufacturer, often associated with car buying, is called the:
A. List price
B. Base price
C. Manufacturer's Suggested Retail Price (MSRP)
D. Selling price
C. Manufacturer's Suggested Retail Price (MSRP)
Advertising one product with the intent of persuading customers to buy a more expensive item when they arrive in the store is called:
A. Price gouging
B. Predatory pricing
C. Bait and switch
D. Price fixing
C. Bait and switch
The path that goods take through the supply chain, either directly to end users or through intermediaries, is called the:
A. Supply chain
B. Product mix
C. Channel of distribution
D. Transportation
C. Channel of distribution
Goods that are usually purchased after making the effort to compare price, quality, and style in more than one store are called:
A. Convenience goods
B. Component parts
C. Specialty goods
D. Shopping goods
D. Shopping goods
Which characteristic of a service means it cannot be separated from the person who performs it?
A. Perishable
B. Intangible
C. Inseparable
D. Variable
C. Inseparable
The point at which revenue from sales equals the costs of creating or buying a product is called the:
A. Markup
B. Base price
C. List price
D. Break-even point
D. Break-even point
The practice of setting very low prices to remove competition, sometimes used by foreign companies to drive domestic companies out of business, is called:
A. Price gouging
B. Loss leader pricing
C. Bait and switch
D. Predatory pricing
D. Predatory pricing
A business that purchases large amounts of goods directly from manufacturers and resells them in smaller quantities to retailers is called a:
A. Retailer
B. Wholesaler
C. Agent
D. Freight forwarder
B. Wholesaler
Goods that are bought often and with little effort, typically for immediate use, are called:
A. Shopping goods
B. Specialty goods
C. Convenience goods
D. Component parts
C. Convenience goods
A written document that states the quality of a product with a promise to correct certain problems is called a:
A. Guarantee
B. Feature
C. Packaging
D. Warranty
D. Warranty
Setting prices to end in an odd number, such as $9.99, to create the perception of a bargain is called:
A. Even pricing
B. Prestige pricing
C. Odd pricing
D. Price lining
C. Odd pricing
Which law made price discrimination illegal?
A. Sherman Antitrust Act (1890)
B. Wheeler Lea Act (1938)
C. Clayton Antitrust Act (1914)
D. Robinson-Patman Act
C. Clayton Antitrust Act (1914)
The process of separating a large quantity of goods into smaller quantities for resale is called:
A. Freight forwarding
B. Transportation
C. Bulk-breaking
D. Bulk-building
C. Bulk-breaking
Which category of business products includes items like computer chips and tires that are already assembled and become part of a finished product?
A. Raw materials
B. Process materials
C. Component parts
D. Major equipment
C. Component parts
The number of product items within a product line is called:
A. Product width
B. Product mix
C. Product depth
D. Product line
C. Product depth
Giving customers a free or reduced-price item when another item is purchased at full price is called:
A. Bundling
B. Buy One, Get One (BOGO) pricing
C. Price lining
D. Trade discount
B. Buy One, Get One (BOGO) pricing
A maximum price set by the government for certain goods and services is called a:
A. Price floor
B. Base price
C. Price ceiling
D. List price
C. Price ceiling
Which mode of transportation is the fastest but also the most expensive, and is often used for high-value, low-weight items?
A. Road transportation
B. Rail transportation
C. Water transportation
D. Air transportation
D. Air transportation
Retailers that sell products through websites are called:
A. Multi-channel retailers
B. Nonstore retailers
C. E-tailers
D. Wholesalers
C. E-tailers
Which term refers to all the goods and services that a business sells?
A. Product line
B. Product depth
C. Product width
D. Product mix
D. Product mix
The amount added to the cost of a product to determine the selling price is called:
A. Markup
B. Break-even point
C. Base price
D. List price
A. Markup
The raising of prices on certain kinds of goods to an excessively high level during an emergency is called:
A. Price gouging
B. Predatory pricing
C. Price fixing
D. Bait and switch
A. Price gouging
A company that organizes shipments by combining smaller shipments from various companies and hiring a transportation company to move them as one large shipment is called a:
A. Wholesaler
B. Agent
C. Freight forwarder
D. Retailer
C. Freight forwarder
Businesses that use supplies from producers to make finished products are called:
A. Extractors
B. Farmers
C. Wholesalers
D. Manufacturers
D. Manufacturers