| A | B |
|---|
| 2 reasons wholesalers and retailers do THIS are:for business use and to sell to customers | purchase |
| customers are often not willing to give up this factor even though they want the product at a lower price | quality |
| Businesses should study the products and services offered by competing businesses in order to determine what to _______ | buy |
| decision about the variety of products to be THIS must balance these two factors customer needs and the financial capability of the business | stocked |
| Buying printer paper from a supplier that a business has used before is what type of purchase | straight rebuy |
| THIS means that the buyer must pay in full within 30 days from the date on invoice | net 30 days |
| actual price customer pays for the product | selling price |
| list price -discount= | selling price |
| price reduction given for a paying by a certain date | cash discount |
| the cost ro produce teh product or buy it for resale | cost of goods sold |
| amount by which the original selling price is reduced before the item is sold | mark down |
| a strategy of setting a high or low one of THESE can BOTH be successful depending on the business and circumstances | Price |
| costs of producing and marketing the product+plus all related operating expenses | specific profit |
| Offering free delivery adds to what expense | operating |
| Effective promotion is based on | effective communication |
| includes all forms of paid promotion | advertising |
| Businesses sometimes use this type of promotion to gain support for ideas or causes | advertising |
| The reasons people don't buy are known as | customer objections |
| need to be well informed and knowledgeable about the products and services they represent | sales people |
| is advertising that is "misleading in a material respect" or in any way that could influence the customer’s purchase or use of the product | false advertising |
| Step 1 in both the consumer buying process and the business buying process | recognizing a problem |
| disadvantage for a business that buys all of its products from one of THESE is if there is a strike, the buyer might not be able to get the products it needs | supplier |
| A price reduction that manufacturers give to their channel partners in exchange for additional services | trade discount |
| Purchasing snow blowers in the summer to help the manufacturer balance production and inventory levels often qualifies the buyer for this type of discount | seasonal discount |
| For manufacturers, the total cost of the materials, operations, and personnel used to make a product | cost of goods sold |
| cost of goods sold plus operating expenses plus net profit | selling price |
| an invoice, credit terms that require the buyer to pay in full in 30 days but would grant the buyer a 2 percent discount for paying within 10 days | 2/10, n/30 |
| examples of aTHIS type of expense include: Advertising, Depreciation, Taxes | operating |
| The manufacturer of a product that is very popular will benefit from pricing based | consumer demand |
| emotional, patronage, rational | buying motives |
| effort by the customer to avoid making a decision to purchase | objections |
| Selling is successful when THIS person is satisfied with the purchase | customer |
| An effective method of increasing sales of a product for a short time | coupons |
| A promotional activity designed to familiarize customers with a new product and to create a demand for it in local businesses | product samples |
| the federal agency that regulates promotion | Federal Trade Commission |
| Amount by which the original selling price is reduced before sale | markdown |
| Reduction in price given for paying by a certain date | cash discount |
| Advertising that violates the law | false advertising |
| Difference between selling price and all costs and expenses | net profit |
| Advertising designed to change a false impression left by earlier misleading information. | corrective advertising |
| Amount added to the cost of goods sold to calculate a selling price | markup |
| Difference between selling price and cost of goods sold | margin |
| Price reduction given to channel partners in exchange for additional services | trade discount |
| Cost to produce a product or buy it for resale | cost of goods sold |
