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Chapter 10 Product, Price, and Place
• The paths that goods take through the supply chain are channels of
distribution. There are both direct and indirect channels of distribution.
Choosing which channel to use is first based on the type of good being
sold.
• Transportation, storage, and utility costs are factors that impact place
strategy. A place strategy is determining how to get products to customers
in a timely manner at the lowest cost.
Check Your Entrepreneurship IQ
Now that you have finished the chapter, see what you
learned about entrepreneurship by taking the chapter
post test. If you do not have a smartphone, visit the
G-W Learning companion website.
www.m.g-wlearning.com
www.g-wlearning.com
Review Your Knowledge
1. Describe a product line.
2. Why is branding important for a business?
3. Describe the process of developing a new product.
4. What is the difference between the list price and the selling price?
5. Explain the difference between fixed expenses and variable expenses.
6. Why does product life cycle affect pricing?
7. List and describe some of the guidelines that can be used to set pricing
objectives.
8. Discuss the differences between cost-based pricing, demand-based
pricing, and competition-based pricing.
9. Describe what makes up the supply chain.
10. What are some of the place decisions an entrepreneur must make?
Apply Your Knowledge
1. You have selected the product or service that you want to create.
Describe the product mix. How many product lines will you have? What
is the product line, product item, and product width?
2. Create the brand that you might use for your product. If appropriate,
create a logo or slogan.