Question 1

The relationship between a retailer's pricing decisions and the other (i.e.merchandise selection,promotion,location)decision areas can best be described as:

Accepted Answer

A)  independent. 
B)  competitive. 
C)  separate. 
D)  counter-related. 
E)  interactive. 
A)  independent. 
B)  competitive. 
C)  separate. 
D)  counter-related. 
E)  interactive. E

Question 2

A portable CD player was originally priced at $79.95 and cost $39 is ultimately sold for $64.95.What was the reduction percentage on the portable CD player?

Accepted Answer

A)  19 percent 
B)  23 percent 
C)  38 percent 
D)  49 percent 
E)  58 percent 
A)  19 percent 
B)  23 percent 
C)  38 percent 
D)  49 percent 
E)  58 percent B

Question 3

Bundling generally involves selling distinct multiple items offered together at a "special price."

Accepted Answer

A) True 
 B)False  True

Question 4

A retail store's pricing policies should reflect the expectations of its target market.

Accepted Answer

A) True 
 B)False

Question 5

Errors in buying occur on the demand side of the pricing equation.

Accepted Answer

A) True 
 B)False

Question 6

The easy access location of gift shops in hotels and airline terminals allows retailers in these locations to charge higher prices.

Accepted Answer

A) True 
 B)False

Question 7

The most common merchandise error is carrying over seasonal or fashion merchandise into the next merchandising season.

Accepted Answer

A) True 
 B)False

Question 8

A retailer wants to increase the number of customers coming into its store.Which of the following pricing strategies has the greatest potential for success?

Accepted Answer

A)  Promotional pricing 
B)  Bundle pricing 
C)  Price flexibility 
D)  Odd pricing 
E)  Leader pricing 
A)  Promotional pricing 
B)  Bundle pricing 
C)  Price flexibility 
D)  Odd pricing 
E)  Leader pricing

Question 9

An example of odd pricing would be:

Accepted Answer

A)  a low introductory price followed by a sharp price increase. 
B)  "buy one, get one free". 
C)  having the selling price end in any odd number. 
D)  subtracting a trade-in from the selling price. 
E)  selling a product for $39.98 instead of $40.00. 
A)  a low introductory price followed by a sharp price increase. 
B)  "buy one, get one free". 
C)  having the selling price end in any odd number. 
D)  subtracting a trade-in from the selling price. 
E)  selling a product for $39.98 instead of $40.00.

Question 10

If a retailer can sell an item for $6 and needs a 40 percent markup on retail to meet profit objectives,that retailer should pay no more than _____ for the item.

Accepted Answer

A)  $2.40 
B)  $3.60 
C)  $6.40 
D)  $8.40 
E)  $9.60 
A)  $2.40 
B)  $3.60 
C)  $6.40 
D)  $8.40 
E)  $9.60

Question 11

Which of the following is NOT an item that must be considered when planning an initial markup?

Accepted Answer

A)  Customer returns and allowances 
B)  Stock shortages 
C)  Planned gross margin 
D)  Cash discounts to customers 
E)  Employee discounts 
A)  Customer returns and allowances 
B)  Stock shortages 
C)  Planned gross margin 
D)  Cash discounts to customers 
E)  Employee discounts

Question 12

When a retailer heavily advertises a high-demand item that is priced low in an effort to attract consumers into a store,the retailer is using leader pricing.

Accepted Answer

A) True 
 B)False

Question 13

A percentage markup of 50 percent on selling price would be the same as a 50 percent markup on cost.

Accepted Answer

A) True 
 B)False

Question 14

Some consumers will pay higher-than-average prices for specialty items.

Accepted Answer

A) True 
 B)False

Question 15

Retailers who are happy with their current market share and level of profits will generally prefer a status quo pricing objective.

Accepted Answer

A) True 
 B)False

Question 16

'_____ occurs when distinct multiple items,generally from different merchandise lines,are offered at a special sale price.

Accepted Answer

A)  Bundling 
B)  Multi-unit pricing 
C)  Odd pricing 
D)  Leader pricing 
E)  Price lining 
A)  Bundling 
B)  Multi-unit pricing 
C)  Odd pricing 
D)  Leader pricing 
E)  Price lining

Question 17

A DVD player that was originally priced at $399.95 and cost $215 is ultimately sold for $349.95.What were the reduction percentage and the maintained markup percentage on this DVD player?

Accepted Answer

A)  14.3 percent; 38.6 percent 
B)  12.5 percent; 38.6 percent 
C)  38.6 percent; 12.5 percent 
D)  15.1 percent; 38.6 percent 
E)  46.2 percent; 12.5 percent 
A)  14.3 percent; 38.6 percent 
B)  12.5 percent; 38.6 percent 
C)  38.6 percent; 12.5 percent 
D)  15.1 percent; 38.6 percent 
E)  46.2 percent; 12.5 percent

Question 18

A(n)_____ pricing policy is likely to occur when a retailer's sales staff offers the same products and quantities to different customers at different prices.

Accepted Answer

A)  flexible 
B)  customary 
C)  one-price 
D)  leader 
E)  variable 
A)  flexible 
B)  customary 
C)  one-price 
D)  leader 
E)  variable

Question 19

As a rule,a retailer's pricing and promotion decisions should be made independently of each other.

Accepted Answer

A) True 
 B)False

Question 20

_____ pricing is a policy in which the retailer sets prices for goods and services,with the intent to maintain those prices over an extended period of time.

Accepted Answer

A)  Leader 
B)  Variable 
C)  Flexible 
D)  Customary 
E)  Status quo 
A)  Leader 
B)  Variable 
C)  Flexible 
D)  Customary 
E)  Status quo

The relationship between a retailer's pricing decisions and the other (i.e.merchandise selection,promotion,location)decision areas can best be described as:

A portable CD player was originally priced at $79.95 and cost $39 is ultimately sold for $64.95.What was the reduction percentage on the portable CD player?

Bundling generally involves selling distinct multiple items offered together at a "special price."

A retail store's pricing policies should reflect the expectations of its target market.

Errors in buying occur on the demand side of the pricing equation.

The easy access location of gift shops in hotels and airline terminals allows retailers in these locations to charge higher prices.

The most common merchandise error is carrying over seasonal or fashion merchandise into the next merchandising season.

A retailer wants to increase the number of customers coming into its store.Which of the following pricing strategies has the greatest potential for success?

An example of odd pricing would be:

If a retailer can sell an item for $6 and needs a 40 percent markup on retail to meet profit objectives,that retailer should pay no more than _____ for the item.

Which of the following is NOT an item that must be considered when planning an initial markup?

When a retailer heavily advertises a high-demand item that is priced low in an effort to attract consumers into a store,the retailer is using leader pricing.

A percentage markup of 50 percent on selling price would be the same as a 50 percent markup on cost.

Some consumers will pay higher-than-average prices for specialty items.

Retailers who are happy with their current market share and level of profits will generally prefer a status quo pricing objective.

'_____ occurs when distinct multiple items,generally from different merchandise lines,are offered at a special sale price.

A DVD player that was originally priced at $399.95 and cost $215 is ultimately sold for $349.95.What were the reduction percentage and the maintained markup percentage on this DVD player?

A(n)_____ pricing policy is likely to occur when a retailer's sales staff offers the same products and quantities to different customers at different prices.

As a rule,a retailer's pricing and promotion decisions should be made independently of each other.

_____ pricing is a policy in which the retailer sets prices for goods and services,with the intent to maintain those prices over an extended period of time.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 10: Merchandise Pricing

The relationship between a retailer's pricing decisions and the other (i.e.merchandise selection,promotion,location)decision areas can best be described as:

A portable CD player was originally priced at $79.95 and cost $39 is ultimately sold for $64.95.What was the reduction percentage on the portable CD player?

Bundling generally involves selling distinct multiple items offered together at a "special price."

A retail store's pricing policies should reflect the expectations of its target market.

Errors in buying occur on the demand side of the pricing equation.

The easy access location of gift shops in hotels and airline terminals allows retailers in these locations to charge higher prices.

The most common merchandise error is carrying over seasonal or fashion merchandise into the next merchandising season.

A retailer wants to increase the number of customers coming into its store.Which of the following pricing strategies has the greatest potential for success?

An example of odd pricing would be:

If a retailer can sell an item for $6 and needs a 40 percent markup on retail to meet profit objectives,that retailer should pay no more than _____ for the item.

Which of the following is NOT an item that must be considered when planning an initial markup?

When a retailer heavily advertises a high-demand item that is priced low in an effort to attract consumers into a store,the retailer is using leader pricing.

A percentage markup of 50 percent on selling price would be the same as a 50 percent markup on cost.

Some consumers will pay higher-than-average prices for specialty items.

Retailers who are happy with their current market share and level of profits will generally prefer a status quo pricing objective.

'_____ occurs when distinct multiple items,generally from different merchandise lines,are offered at a special sale price.

A DVD player that was originally priced at $399.95 and cost $215 is ultimately sold for $349.95.What were the reduction percentage and the maintained markup percentage on this DVD player?

A(n)_____ pricing policy is likely to occur when a retailer's sales staff offers the same products and quantities to different customers at different prices.

As a rule,a retailer's pricing and promotion decisions should be made independently of each other.

_____ pricing is a policy in which the retailer sets prices for goods and services,with the intent to maintain those prices over an extended period of time.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters