Entrepreneurship Ch. 10 - Product, Price, Place

The growth stage of the product life cycle is characterized by the market being saturated with the product and intense competition for customers.

• True

• False

The cost of a product can be increased because of the packaging of the product.

• True

• False

Expenses, the product's life cycle, and supply and demand are some of the factors that affect pricing decisions.

• True

• False

Cost + markup = selling price is the equation used for value-based pricing.

• True

• False

An indirect distribution channel is one in which goods or services go directly from manufacturer to end user.

• True

• False

Used in making a product, but are identifiable; food preservatives.

• accessory equipment

• component parts

• major equipment

• process materials

Which of the following is a group of closely related products within a product mix?

• product mix

• product width

• product line

• product depth

Setting the price of a product based on the cost of the product.

• cost-based pricing

• demand-based pricing

• psychological pricing

• keystone pricing

Becomes a part of a finished product but is already assembled.

• component parts

• major equipment

• process materials

• raw materials

Setting the price based on what the customer is willing to pay.

• cost-based pricing

• demand-based pricing

• competition-based pricing

• psychological pricing