Page 592 - Business Principles and Management

C HAPTER 21 A SSESSMENT

APPLY WHAT YOU KNOW

18. Identify a company with a product that has an extensive product
line. Identify specific products that are part of the product line.
Then describe the differences among those products and why they
meet different customers’ needs.
19. For a product with which you are familiar, describe ways that the
packaging improves sales and usability. Now identify examples of
packaging that interferes with sales and usability.
20. Make a list of products you have purchased that were probably
stored for a length of time before you purchased them. Then make
a similar list of products that were not stored or were stored only
a short time before you purchased them. Discuss the differences
among the products.
21. Provide examples showing that the ways in which consumers pur-
chase a product influence the type of distribution channel used.
22. Discuss the problems businesses and consumers might encounter
with product distribution and order processing when the Internet is
used for selling and buying.

MAKE CONNECTIONS

23. Math An appliance store can purchase a certain brand of electric
heater for $45.00 from a firm in City A or for $48.50 from another
firm in City B. The transportation cost from City A is $3.88 per
heater. From City B, the transportation cost is $2.77 per heater.
What is the difference in cost between the two firms if the appliance
store buys 500 heaters? What factors other than cost should the ap-
pliance store consider when deciding from which firm to make the
purchase?
24. Technology A student organization to which you belong has decided
to sell containers of bottled water at after-school activities, athletic
events, and other functions as a fund-raiser. Your organization made
an agreement with the supplier that allows you to design a unique
package for the water bottle. Use a computer graphics program, like
Microsoft’s Paint, to design a package that will meet the four differ-
ent purposes of packaging described in the chapter.
25. Writing Assume you work for a company located in Utah that man-
ufactures children’s toys and games. Your potential customers are
located throughout the world. Write a one-page report stating the
ways in which you can use each of the following methods to im-
prove customer service or profitability: (a) Internet sales, (b) con-
tainerization, and (c) bar coding.
26. Research Use the Internet to identify two companies that specialize in
shipping products. List the services they offer and describe how they
specialize. Compare your answers to those of other students.

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