Question 1

If we know the markup on selling price,we can easily find markup on cost,even if we do not know the dollar amount involved.

Accepted Answer

A) True 
 B)False

Question 2

To be effective,a retail buyer should never take a markdown.

Accepted Answer

A) True 
 B)False

Question 3

You have decided that one of the goals of your retail expansion is to establish a loyal customer base before the competition is able to do so.Therefore,when you enter a new trading area with a new product or service,you should use a _____ price strategy.

Accepted Answer

A)  late markdown 
B)  penetration 
C)  status quo 
D)  skimming 
E)  cost-plus 
A)  late markdown 
B)  penetration 
C)  status quo 
D)  skimming 
E)  cost-plus

Question 4

After being introduced to a higher-priced washing machine,the customer expresses a desire to purchase a lower-priced item.When this happens,the customer is said to have:

Accepted Answer

A)  bailed. 
B)  traded up. 
C)  yielded. 
D)  traded down. 
E)  extended. 
A)  bailed. 
B)  traded up. 
C)  yielded. 
D)  traded down. 
E)  extended.

Question 5

If an item costs a retailer $75 and the retailer's markup percentage is 30 percent based on cost,what is the retailer's selling price?

Accepted Answer

A)  $22.50 
B)  $97.50 
C)  $208.33 
D)  $283.33 
E)  Cannot be determined with the information provided. 
A)  $22.50 
B)  $97.50 
C)  $208.33 
D)  $283.33 
E)  Cannot be determined with the information provided.

Question 6

Most types of retail establishments are able to attract all segments of a target market.

Accepted Answer

A) True 
 B)False

Question 7

_____ is a practice where a low-priced model of a shopping good is used to lure shoppers into a store where the salesperson will attempt to persuade them to purchase a higher-priced model.

Accepted Answer

A)  Leader pricing 
B)  High-low pricing 
C)  Multiple-unit pricing 
D)  Price lining 
E)  Bait-and-switch pricing 
A)  Leader pricing 
B)  High-low pricing 
C)  Multiple-unit pricing 
D)  Price lining 
E)  Bait-and-switch pricing

Question 8

Percentage markup on selling price equals:

Accepted Answer

A)  markup/cost. 
B)  initial markup - maintained markup. 
C)  percentage markup on selling price/(100 percent - percentage markup on selling price). 
D)  (percentage markup on cost)/(100 percent + percentage markup on cost). 
E)  100 percent - percentage markup on cost. 
A)  markup/cost. 
B)  initial markup - maintained markup. 
C)  percentage markup on selling price/(100 percent - percentage markup on selling price). 
D)  (percentage markup on cost)/(100 percent + percentage markup on cost). 
E)  100 percent - percentage markup on cost.

Question 9

A skimming strategy will work best for a retailer when:

Accepted Answer

A)  competition is high because it "skims" right above the retailer's costs. 
B)  revenues are equal to expenses. 
C)  the retailer has a temporary monopoly with its product line. 
D)  the retailer has excess capacity in its building. 
E)  demand is less than supply. 
A)  competition is high because it "skims" right above the retailer's costs. 
B)  revenues are equal to expenses. 
C)  the retailer has a temporary monopoly with its product line. 
D)  the retailer has excess capacity in its building. 
E)  demand is less than supply.

Question 10

What type of pricing policy increases both the efficiency and fairness in handling customer transactions especially where the selling activity is delegated to salespersons who have varying degrees of loyalty to the retailer?

Accepted Answer

A)  Variable 
B)  Flexible 
C)  Price lining 
D)  One-price 
E)  Multiple-unit 
A)  Variable 
B)  Flexible 
C)  Price lining 
D)  One-price 
E)  Multiple-unit

Question 11

Sales-oriented objectives are based on achieving a certain level of sales,market share,or profit.

Accepted Answer

A) True 
 B)False

Question 12

The retailer who never makes a buying error is probably:

Accepted Answer

A)  missing profit opportunities by being too conservative. 
B)  overestimating demand. 
C)  overpromoting. 
D)  maximizing profits. 
E)  controlling expenses. 
A)  missing profit opportunities by being too conservative. 
B)  overestimating demand. 
C)  overpromoting. 
D)  maximizing profits. 
E)  controlling expenses.

Question 13

Movies and vending machine products are common examples of items that use customary pricing.

Accepted Answer

A) True 
 B)False

Question 14

If a retailer buys a product for $30 and sells it for $50,what is the markup percentage,if the markup is based on cost?

Accepted Answer

A)  33 percent 
B)  40 percent 
C)  67 percent 
D)  80 percent 
E)  100 percent 
A)  33 percent 
B)  40 percent 
C)  67 percent 
D)  80 percent 
E)  100 percent

Question 15

Customer service standards vary throughout the world.

Accepted Answer

A) True 
 B)False

Question 16

A retailer must consider the impact of a customer's travel costs when determining what price a customer will pay for merchandise.

Accepted Answer

A) True 
 B)False

Question 17

Most jewelry stores and automobile dealerships use the flexible pricing policy.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are typical pricing objectives EXCEPT:

Accepted Answer

A)  target-return. 
B)  sales maximization 
C)  status quo. 
D)  profit maximization 
E)  sales-oriented. 
A)  target-return. 
B)  sales maximization 
C)  status quo. 
D)  profit maximization 
E)  sales-oriented.

Question 19

When making a pricing decision,what other factors should a retailer consider?

Accepted Answer

Pricing is an interactive decision made

Question 20

Pricing is an interactive decision made in conjunction with the firm's mission statement,its goals and objectives,its strategy,its operational management,and administrational management.

Accepted Answer

A) True 
 B)False

If we know the markup on selling price,we can easily find markup on cost,even if we do not know the dollar amount involved.

To be effective,a retail buyer should never take a markdown.

You have decided that one of the goals of your retail expansion is to establish a loyal customer base before the competition is able to do so.Therefore,when you enter a new trading area with a new product or service,you should use a _____ price strategy.

After being introduced to a higher-priced washing machine,the customer expresses a desire to purchase a lower-priced item.When this happens,the customer is said to have:

If an item costs a retailer $75 and the retailer's markup percentage is 30 percent based on cost,what is the retailer's selling price?

Most types of retail establishments are able to attract all segments of a target market.

_____ is a practice where a low-priced model of a shopping good is used to lure shoppers into a store where the salesperson will attempt to persuade them to purchase a higher-priced model.

Percentage markup on selling price equals:

A skimming strategy will work best for a retailer when:

What type of pricing policy increases both the efficiency and fairness in handling customer transactions especially where the selling activity is delegated to salespersons who have varying degrees of loyalty to the retailer?

Sales-oriented objectives are based on achieving a certain level of sales,market share,or profit.

The retailer who never makes a buying error is probably:

Movies and vending machine products are common examples of items that use customary pricing.

If a retailer buys a product for $30 and sells it for $50,what is the markup percentage,if the markup is based on cost?

Customer service standards vary throughout the world.

A retailer must consider the impact of a customer's travel costs when determining what price a customer will pay for merchandise.

Most jewelry stores and automobile dealerships use the flexible pricing policy.

All of the following are typical pricing objectives EXCEPT:

When making a pricing decision,what other factors should a retailer consider?

Pricing is an interactive decision made in conjunction with the firm's mission statement,its goals and objectives,its strategy,its operational management,and administrational management.

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

If we know the markup on selling price,we can easily find markup on cost,even if we do not know the dollar amount involved.

To be effective,a retail buyer should never take a markdown.

You have decided that one of the goals of your retail expansion is to establish a loyal customer base before the competition is able to do so.Therefore,when you enter a new trading area with a new product or service,you should use a _____ price strategy.

After being introduced to a higher-priced washing machine,the customer expresses a desire to purchase a lower-priced item.When this happens,the customer is said to have:

If an item costs a retailer $75 and the retailer's markup percentage is 30 percent based on cost,what is the retailer's selling price?

Most types of retail establishments are able to attract all segments of a target market.

_____ is a practice where a low-priced model of a shopping good is used to lure shoppers into a store where the salesperson will attempt to persuade them to purchase a higher-priced model.

Percentage markup on selling price equals:

A skimming strategy will work best for a retailer when:

What type of pricing policy increases both the efficiency and fairness in handling customer transactions especially where the selling activity is delegated to salespersons who have varying degrees of loyalty to the retailer?

Sales-oriented objectives are based on achieving a certain level of sales,market share,or profit.

The retailer who never makes a buying error is probably:

Movies and vending machine products are common examples of items that use customary pricing.

If a retailer buys a product for $30 and sells it for $50,what is the markup percentage,if the markup is based on cost?

Customer service standards vary throughout the world.

A retailer must consider the impact of a customer's travel costs when determining what price a customer will pay for merchandise.

Most jewelry stores and automobile dealerships use the flexible pricing policy.

All of the following are typical pricing objectives EXCEPT:

When making a pricing decision,what other factors should a retailer consider?

Pricing is an interactive decision made in conjunction with the firm's mission statement,its goals and objectives,its strategy,its operational management,and administrational management.

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