Interactive Exercise

Chapter Eight

Interactive Exercise –

Business Product Classes

Overview:

The purpose of this exercise is to help students learn how to differentiate between the different business product classifications based on the intended use of a product within an organization. Five business product purchase / usage situations are described; students are challenged to identify the correct business product classification for each example using a simple drag and drop exercise.

Concept Review:

It may be beneficial to begin the exercise by reviewing the difference between business and consumer products. Students frequently try to “type” or classify products on the basis of the attributes or benefits provided. Confusion is inevitable when using this system as identical products can often be classified as either a consumer or a business good. For example, microwave ovens are common household appliances, yet they are frequently purchased by many organizations for use in the company break room. The benefits provided to both groups are the same. It should be emphasized that consumer products are those that are used by the ultimate or final consumer in the running / management of a household, while business products are goods and services purchased by organizations and used in the manufacturing process (installations, raw materials, components) or in the running of the business (accessories, supplies, professional services).

Business products may be classified as installations, accessories, raw materials, components, supplies, or professional services. Differentiating between installations and accessories is often difficult for students. Generally speaking, installations represent major capital outlays (as perceived by the organization) and thus are more expensive than accessories, more likely to be customized, more likely to be depreciated over time vs. expensed in the year of purchase and are often leased. Supplies should be differentiated from components by explaining that components ultimately become part of a manufactured product, while supplies are used in the maintenance, repair, or operation of equipment that is used in the general running of the business or in the manufacturing process. It should also be stressed that components have been processed to at least some extent, while raw materials include unprocessed ores, fruits, vegetables, fish, etc.

Using the Exercise:

Initial Screen:

1.This screen introduces the six classifications of business products in a 3 x 2 table grid.

Each table cell will transition briefly by changing color or pulsing in some fashion.

To begin the exercise the professor clicks anywhere on the screen. Clicking within a particular cell is not necessary.

The exercise will automatically transition to the next drop and drag screen.

Next Screen:

2.Drop and drag screen #1 appears. A purchase scenario statement is shown above the 3 x 2 table grid.

The professor reads the purchase scenario statement to the class.

The professor then challenges students to determine the correct business product classification exemplified by the purchase scenario under consideration.

The professor clicks on the purchase scenario statement to activate it, and holding down the left-hand mouse button, drags the statement on top of the table cell pertaining to the student’s response. When the statement is positioned over the selected cell, the professor releases the mouse button.

If the wrong response is given, a buzzer will sound and the statement will move back to its position above the table. For details related to right and wrong answers, refer to the ANSWERS AND EXPLANATION section below.

The drop and drag selection process is repeated until the correct answer is chosen. When this happens, the statement will appear to “stick” to the correct table cell and a cash register “Ch-ching!” sound will be heard. The slide automatically transitions to the next drop and drag screen as described below in step 3.

Next Screen:

3.The second Drop and Drag Screen appears.

A new purchase scenario appears above the 3 x 2 business product classification table.

The purchase scenario previously explored is now integrated into the correct table cell.

The background color of the completed table cell is displayed in a different color to indicate to students that it should no longer be considered as an alternative for future classifications.

The professor repeats the drop and drag selection process described in step #2.

Next Several Screens

The selection processes described in steps 2 and 3 are repeated until each of the five purchase scenarios has been investigated.

Final Screen

5.The final screen matches each purchase scenario to the correct business product classification. Since the answer for a final item would be apparent (given only one empty cell), the final cell, “accessories,” lists a few traits that distinguish this type of good from installations.

6.The professor clicks the “X” icon in the upper left hand corner of the screen to end the exercise.