Chapter 2

Question 1

The earliest commercial exchanges, goods or services were exchanged for other goods or
services

Answer 1

Barter

Question 2

it is where a seller provides a product to a buyer in return for something in exchange

Answer 2

Commercial Exchange

Question 3

product that is tangible

Answer 3

Goods

Question 4

result of human or mechanical effort

Answer 4

Service

Question 5

an individual who purchases a product for his or her own use

Answer 5

Consumer

Question 6

an individual or group who purchases the product in order to resell it or for other business purposes

Answer 6

Customer

Question 7

it is what is given in a commercial exchange in return for a good or service

Answer 7

Price

Question 8

T or F

A cost is what a firm pays, while a price is what a business charge

Answer 8

True

Question 9

What is the term for price when in college course or education

Answer 9

Tuition

Question 10

What is the term for price when it comes to use of a place to live or use of equipment for a period of time

Answer 10

Rent

Question 11

What is the term for price when its the use of money

Answer 11

Interest

Question 12

What is the term for price when used in professional services: for lawyers, doctors, consultants

Answer 12

Fee

Question 13

What is the term for price when for insurance

Answer 13

Premium

Question 14

What is the term for price for transportation

Answer 14

Fare

Question 15

What is the term for price used of a road, bridge, or long distance phone rate

Answer 15

Toll

Question 16

What is the term for price for work of managers

Answer 16

Salary

Question 17

What is the term for price for work of hourly workers

Answer 17

Wages

Question 18

What is the term for price used in sales effort

Answer 18

Commission

Question 19

The key to business success is to focus on
satisfying customer needs. This signifies that a business strives to meet consumer needs in every way possible

Answer 19

Marketing Concept

Question 20

The four elements of the marketing mix

Answer 20

1. Product development
2. Placement/ distribution
3. Promotion
4. Pricing

Question 21

Designing, naming, and packaging goods and/or services that meet client needs

Answer 21

Product Development

Question 22

efforts to get the product to customers when and where they want it.

Answer 22

Placement/ distribution

Question 23

the act of spreading information about a product and/or the company that makes it

Answer 23

Promotion

Question 24

entails deciding what a client must provide in exchange for a product

Answer 24

Pricing

Question 25

T or F Pricing create value; Product, distribution and Promotion harvest value

Answer 25

False. Pricing harvests value; Product, distribution and Promotion creates value

Question 26

refer to the benefits, or the satisfactions of needs and wants, that a product provides to customers

Answer 26

Value

Question 27

Three categories of pricing issues

Answer 27

1. Buyer seller interactivity in determining prices 2. Price structure 3. Price format

Question 28

a process involving some number of prices and offers and statements supporting the validity of each.

Answer 28

Haggling

Question 29

The seller and the customer would then try to arrive at an amount they can both agree on

Answer 29

Haggling

Question 30

A price arrived at by the buyer–seller interactions of negotiation or the interactions of auction or bidding would be referred to as

Answer 30

Interactive Price

Question 31

The price that the seller actually expects to receive and sticking to it is referred to as

Answer 31

Fixed Price

Question 32

refers to the specific way prices are set or organized within a business

Answer 32

Price structure

Question 33

The practice of charging different customers different prices for the same item is known as

Answer 33

Price Segmentation

Question 34

The form of expression of a price is known as

Answer 34

Price Format

Question 35

The question of whether a price should be expressed as a single number or as the sum of more than one number is the issue

Answer 35

Price partitioning

Question 36

T or F It is possible for a large company to experience problems in the effective implementation of pricing decisions.

Answer 36

True

Question 37

the price of the item that will appear on the customer’s bill

Answer 37

Invoice price

Question 38

T or F A business organization should take steps to help ensure that everyday marketing decisions fit with the organization’s strategies and long-term interests.

Answer 38

False. A business organization should take steps to help ensure that everyday PRICING decisions fit with the organization’s strategies and long-term interests.