PRACTICE EXERCISES

UNIT 10 PRICE

A Study the following words or phrases.

List price (n) Price-sensitive (adj) Market price (n)
The list price of If the market for a If you talk about the
something is its official product or service is market price of
price, before any price-sensitive, it is something, you mean that
discounts are included. quickly affected by its price or value depends
changes in price. on how many of the items
are available and how
many people want to buy
them.
The list price of the car is Online shoppers are The fair trade company
£20,000. extremely price-sensitive, pays above the market
and they tend to compare price for its coffee.
prices on a variety of
sites.
Wholesaler (n) Retailer (n) Intermediary (n)
A wholesaler is a person A retailer is a person or An intermediary is a
whose business is buying business that sells goods person or organization
large quantities of goods to the public. that provides a link
and selling them in between two other
smaller amounts, for people or organizations.
example to shops.
They are the largest drugs The biggest problem for The intermediary offers
wholesaler in Europe. retailers is expected to be services like shipping,
coping with demand. warehousing and freight
forwarding.
Price (v) Pricing strategy (n) Price tag (n)
If something is priced at a Pricing strategy is the If something has a price
particular amount, the tactic that company use tag of a particular
price is set at that to increase sales and amount, that is the
amount. maximize profits by amount that you must
selling their goods and pay in order to buy it.
 services for appropriate
prices.
The property has to be Bargaining is an The price tag on the
priced at less than alternative pricing garment said $50 but the
600,000. strategy to fixed prices. price on the system was
$47.

B Complete the following sentences using words or phrases in part A.

1 In a public company, the value is the ___market price_________ of the
stock.
2 This uncertainty has been reflected in the share prices of the UK's biggest
_________ _retailer____.
3 The product is then sold to the end-user via an
____intermediary__________.
4 Women are becoming less ____price-sensitive__________ and more
sophisticated about the brands and products that they finally buy.
5 Solar-wind Company orders a machine from YY Company at a ___list
price_ of $ 10.
6 The key objective of a _________pricing strategy_____ is anticipating the
value created for customers and then setting specific prices to capture
that value.
7 It's unlikely that the new generation of phones can ever be _ price_ below
the $200 level that has spurred sales of earlier versions.
8 In a shop, the ______price tag______ on an article for sale is a small piece
of card or paper which is attached to the article and which has the price
written on it.
9 It is usually cheaper to buy the goods direct from the
____wholesaler__________.

B Read the text in Unit 10 “Make it cheaper and cheaper”

According to the reading text, choose the best answers A, B, C or D.
1 What is the reason for a decrease in prices in the food business?
 A. Modern technology B. lower demand on food
C. higher supply of food D. All of above
2 The sizes of supermarkets help them to buy goods:
A. In big sizes B. at low prices
C. in large quantities D. conveniently
3 What type of business do supermarkets provide?
A. Wholesales business B. retail business
C. manufacturing business D. consultancy providing business
4 How many staffs were there in the Unilever before it cut its workforce?
A. 33,000 B. 245,000 C.55,000 D.278,000
5 What do food companies do to attract customers?
A. To produce healthy food
B. To increase the sizes of portions of food without increasing prices
C. To sell only cheap food to customers
D. To produce plenty of food.

VOCABULARY

A Match the terms from 1 – 9 with their definitions from a – i.

1 price break b a) the label on an article for sale showing its price and
other details
2 price check d
b) a reduction in price, especially for bulk purchase
3 price comparison c) the price charged to individual customers
d) an investigation of the prices charged by different
g
retailers for the same goods to find the best value.
4 price tag a e) a situation in which competitors selling a certain
commodity successively lower prices, as to force
5 price war e one or more out of business
6 price-fixing i f) a notional range of prices which consumers are
prepared to pay for a good
7 price bracket f g) comparing the price of the same product in

8 retail price c different outlets.

h) the price for one item or measurement, such as a
9 unit price h pound, a kilogram, or a pint, which can be used to
 compare the same type of goods sold in varying
weights and amounts.
i) the setting of prices by agreement among
producers and distributors

B Fill in the gaps with ONE word for each gap.

Talking about prices

If you make prices higher, you increase or raise them, and if
you make them lower, you cut, (1) ______________ or
reduce them. If you say that (2) ______________ are slashed,
you mean they have been cut a lot.
If prices are getting (3) ______________ , you can say they
are rising or soaring, and if they are getting lower, you can say
they are (4) ____________. If you quote a price, you say you
will do something or sell something (5) ____________ that
price, and if you charge a price, that is how much someone
must pay you.
If you decide how much things should cost, you (6)
______________ prices. If something is sold for a particular
amount, it fetches that price. To talk about how much things
cost, you can say that prices start at a particular amount, or
that prices range from one (7) ____________to another. The
(8) ___________ price for something is the amount it costs in