Exam 10: Merchandise Pricing

A retailer has a cost per unit of $22 on a pair of pants and a selling price of $38.The markup equals $22.

A price zone is a range of prices for a particular merchandise line that appeals to customers in a certain market segment.

An advantage of the early markdown policy is that it allows the retailer to replenish lower-priced lines from the higher-priced ones that have been marked down.

In _____ pricing,a high-demand item is priced low and advertised heavily in an effort to attract consumers into a store.

An example of a _____ pricing policy is when movie theaters give discounts to special groups,such as seniors.

Markup is the difference between the cost of the merchandise and the selling price.

A retailer's maintained markup is usually lower than the retailer's initial markup.

The retailer's controllable element of price can be either the cost of goods sold or the gross margin that is added to the cost.

Which of the following is NOT a characteristic of a retailer that prices below the market?

A markup of 100 percent based on cost is the same as a 50 percent markup based on selling price.