1) Answer the questions.

1. What is the logistics/SC product?

2. How can you define a product? What is any product composed of?

3. Explain the difference between consumer products and industrial products.

4. Are consumer products divided into any types? What are they?

5. In what way have industrial goods and services been traditionally classified?

2) Mark the statements as true or false according to the text.

1. A product is the outcome, or result, of any activity or process.

2. Industrial products are divided into convenience products, shopping products, and specialty products.

3. Convenience products are those for which consumers are willing to seek and compare.

4. Specialty products are those for which buyers are willing to expend a substantial effort and often to wait some time.

5. The product is the centre of focus in logistics system.

3) Decide what type of product each passage illustrates.

1. For PepsiCo and Coca-Cola one channel of distribution is through vending machines located just about anywhere people may congregate.

As a result, public telephones are located widely and conveniently throughout the land as are cellular telephone towers, which are now replacing many of the pub­lic telephone sites.

2. High-level, specialized medical care is concentrated in relatively few university hospitals, clinics, and privately owned hospitals, due to the high costs of facili­ties, equipment, and highly trained personnel. Because patients often want the very best care possible, they are willing to seek out and travel to such places, often bypassing intervening health care providers that may be located closer to them.

3. Many professional musicians will go to almost any length to find the right equip­ment to perform their very best. For example, a clarinetist requires a reed, which is a small piece of cane that is the tone generator for the clarinet. This capricious piece of dried grass can make or break a professional musician, or so he or she thinks. One brand of reed is particularly sought. It is grown in the south of France and distrib­uted through only one retail outlet in the United States. According to the store owner, one professional clarinetist regularly drives over 600 miles to his store to acquire a supply of this good.

4) Fill in the suitable words from the list (buy, consumer, difference, goods, people, industrial, services, threefold).

A traditional classification is to divide goods and services into __________ products and _____________ products. Marketing ______________ have long recognized the basic _______________ in the way consumers go about selecting _______________ and _________________, and where they __________ them. A ___________________ consumer products classification has been suggested.

5) Make word combinations.

1. store	a) care
2. public	b) availability
3. convenience	c) shopping
4. manufacturing	d) service
5. substantial	e) owner
6. high-fashion	f) telephones
7. customer	g) products
8. comparative	h) process
9. product	i) effort
10. medical	j) clothes