For this group exercise we used a softbox from above and white reflectors on the sides to reduce the shadows underneath the chair and to bounce more light on the chair. To get the gradient background we used a baffle. One of the things to remember is being careful with specular highlights because it leads to the loss of the texture.
To cut out the chair from the background I used a pen tool in the Photoshop. I tried to cut out the shadow as a separate layer and to lower its opacity, but I got a hard shadow with sharp edges, so I softened it with a soft brush using white colour.
Product photography tips: http://www.diyphotography.net/7-functional-tips-better-product-photography/