Chapter 5 Review

The product mix often includes items of convenience for customers even though those products may not be profitable.

• True

• False

For many businesses, a small percentage of their product mix often makes up the majority of the sales revenue.

• True

• False

Product features include such things as color, size, quality, warranties, delivery, and installation.

• True

• False

The brand is the name, symbol, or design used to identify your product.

• True

• False

The price is the actual amount that a customer pays for a product or service.

• True

• False

The return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions.

• True

• False

To determine the market share of a business, the total market for a product must be known.

• True

• False

Demand-based pricing uses surveys to find out the maximum price that customers would pay for a product.

• True

• False

With competition-based pricing, the price charged is the same as the price charged by competitors.

• True

• False

When services are combined under one charge, rather than making the customer pay for each individual part of the service, this is called price skimming.

• True

• False