Question 1

At the new toy store that opened near his home, Ryan noticed all the products were priced at $.49, $.79, or $.99 endings. What type of pricing is the store following?

Accepted Answer

A)  Odd pricing 
B)  Unit pricing 
C)  Horizontal pricing 
D)  Mixed pricing 
E)  Promotional pricing 
A)  Odd pricing 
B)  Unit pricing 
C)  Horizontal pricing 
D)  Mixed pricing 
E)  Promotional pricing A

Question 2

How does an improved inventory management through the use of an everyday low-pricing (EDLP) strategy benefit retailers?

Accepted Answer

A)  It increases the total sales. 
B)  It increases the number of rain checks. 
C)  It leads to more frequent sales and markdowns. 
D)  It results in a need for more backup stock. 
E)  It increases the sales of slow-moving merchandise. 
A)  It increases the total sales. 
B)  It increases the number of rain checks. 
C)  It leads to more frequent sales and markdowns. 
D)  It results in a need for more backup stock. 
E)  It increases the sales of slow-moving merchandise. A

Question 3

An agreement between retailers that are in direct competition with each other to set the same prices is called

Accepted Answer

A)  horizontal price fixing. 
B)  vertical price fixing. 
C)  MSRP pricing. 
D)  predatory pricing. 
E)  price elasticity. 
A)  horizontal price fixing. 
B)  vertical price fixing. 
C)  MSRP pricing. 
D)  predatory pricing. 
E)  price elasticity. A

Question 4

Which of the following statements does not describe a benefit of markdowns for a retailer?

Accepted Answer

A)  Markdowns generate cash flow to pay for new merchandise. 
B)  It is a way to make room for new merchandise. 
C)  It rids the store of obsolete merchandise. 
D)  It increases customer traffic. 
E)  It is a way to gain a higher gross margin. 
A)  Markdowns generate cash flow to pay for new merchandise. 
B)  It is a way to make room for new merchandise. 
C)  It rids the store of obsolete merchandise. 
D)  It increases customer traffic. 
E)  It is a way to gain a higher gross margin.

Question 5

A commonly used measure of price sensitivity is

Accepted Answer

A)  price variation. 
B)  price elasticity. 
C)  price velocity. 
D)  price adaptability. 
E)  price adjustment. 
A)  price variation. 
B)  price elasticity. 
C)  price velocity. 
D)  price adaptability. 
E)  price adjustment.

Question 6

Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she has become popular because she gives her day-old produce to the local charity. Which of the following benefits does Jenny gain by donating produce to the local charity?

Accepted Answer

A)  It requires extra record keeping and transportation costs. 
B)  It offers her strong public relations benefits. 
C)  She needs to allocate separate space for her clearance merchandise. 
D)  She can recover a small percentage of the merchandise's cost. 
E)  The keystone price can be deducted from her income. 
A)  It requires extra record keeping and transportation costs. 
B)  It offers her strong public relations benefits. 
C)  She needs to allocate separate space for her clearance merchandise. 
D)  She can recover a small percentage of the merchandise's cost. 
E)  The keystone price can be deducted from her income.

Question 7

Which of the following pricing practices employs tactics such as inadequate inventory for advertised products?

Accepted Answer

A)  Bait and switch 
B)  Deceptive reference pricing 
C)  MSRP pricing 
D)  Predatory pricing 
E)  Horizontal price fixing 
A)  Bait and switch 
B)  Deceptive reference pricing 
C)  MSRP pricing 
D)  Predatory pricing 
E)  Horizontal price fixing

Question 8

A price experiment

Accepted Answer

A)  can be used to measure the price sensitivity of customers. 
B)  cannot be performed if the retailer uses POS terminals. 
C)  is a less accurate method of determining buyer response to price changes than a consumer panel. 
D)  is useful for obtaining data for a cost-oriented pricing strategy. 
E)  is a risky procedure when competition is a factor. 
A)  can be used to measure the price sensitivity of customers. 
B)  cannot be performed if the retailer uses POS terminals. 
C)  is a less accurate method of determining buyer response to price changes than a consumer panel. 
D)  is useful for obtaining data for a cost-oriented pricing strategy. 
E)  is a risky procedure when competition is a factor.

Question 9

What are the ways markdown merchandise can be consolidated?

Accepted Answer

Markdown merchandise can be consolidated

Question 10

Retailers frequently offer a limited number of predetermined price points within a merchandise category, a practice known as zone pricing.

Accepted Answer

A) True 
 B)False

Question 11

The approach of using a 50 percent markup is known as ________ and would result in the retail price being double the cost.

Accepted Answer

A)  activity costing 
B)  keystoning 
C)  budget costing 
D)  cost plus costing 
E)  regular costing 
A)  activity costing 
B)  keystoning 
C)  budget costing 
D)  cost plus costing 
E)  regular costing

Question 12

Left Lanta is a small retailer in Underground Atlanta, a historical retail district in that city. Here, the Lanta family sells items for left-handed people. Since the store is located in a kiosk near one of the entrances to the underground, it is often the target of shoplifters. Therefore, the store is forced to reduce the actual selling price of its products. The factors such as theft that cause the reduction in the selling price are called

Accepted Answer

A)  loss margins. 
B)  amortized losses. 
C)  reductions. 
D)  markdowns. 
E)  net losses. 
A)  loss margins. 
B)  amortized losses. 
C)  reductions. 
D)  markdowns. 
E)  net losses.

Question 13

The Bow Shop caters to archery enthusiasts. It sells bows starting at $300. The maintained markup used by the store is 60 percent. Reductions are estimated to be 12 percent. Calculate the store's planned initial markup percentage.

Accepted Answer

A)  55.55 percent 
B)  48 percent 
C)  60 percent 
D)  64.29 percent 
E)  72 percent 
A)  55.55 percent 
B)  48 percent 
C)  60 percent 
D)  64.29 percent 
E)  72 percent

Question 14

Eunice buys a worm farm. She plans to sell a small carton of worms to people who want to fish for $3. Her fixed costs are $1,201, and her variable cost for each carton sold is $.75. How many cartons of worms does Eunice need to sell to reach her break-even quantity?

Accepted Answer

A)  2712 
B)  321 
C)  400 
D)  534 
E)  888 
A)  2712 
B)  321 
C)  400 
D)  534 
E)  888

Question 15

________ is the practice of offering two or more different products or services for sale at one price.

Accepted Answer

A)  Price bundling 
B)  Psychological pricing 
C)  Price grouping 
D)  Conjoint bundling 
E)  Price lining 
A)  Price bundling 
B)  Psychological pricing 
C)  Price grouping 
D)  Conjoint bundling 
E)  Price lining

Question 16

Some retailers liquidate end-of-season merchandise to retailers like TJ Maxx, who in return sell it at a deep discount. What is the benefit to the retailer who liquidates merchandise using this strategy?

Accepted Answer

A)  The retailer is able to replace the merchandise with other markdowns. 
B)  It helps retailers recoup a percentage of the merchandise cost. 
C)  It is a profitable way for retailers to get rid of undesirable merchandise. 
D)  The retailer can consolidate the merchandise. 
E)  It lowers the reputation of the company who purchases the liquidated merchandise. 
A)  The retailer is able to replace the merchandise with other markdowns. 
B)  It helps retailers recoup a percentage of the merchandise cost. 
C)  It is a profitable way for retailers to get rid of undesirable merchandise. 
D)  The retailer can consolidate the merchandise. 
E)  It lowers the reputation of the company who purchases the liquidated merchandise.

Question 17

________ is the actual sales realized for the merchandise minus its costs of the merchandise sold.

Accepted Answer

A)  Total profit 
B)  Net profit margin 
C)  Fixed price 
D)  Maintained markup 
E)  Initial markup 
A)  Total profit 
B)  Net profit margin 
C)  Fixed price 
D)  Maintained markup 
E)  Initial markup

Question 18

What legal and ethical pricing issues need to be considered when retailers set their prices?

Accepted Answer

Retailers consider certain legal and eth

Question 19

A ________ is the price against which buyers compare the actual selling price of the product, and thus it facilitates their evaluation process.

Accepted Answer

A)  MSRP price 
B)  break-even price 
C)  markup price 
D)  reference price 
E)  maintained markup 
A)  MSRP price 
B)  break-even price 
C)  markup price 
D)  reference price 
E)  maintained markup

Question 20

Reductions in the initial retail prices are known as

Accepted Answer

A)  rain checks. 
B)  fixed costs. 
C)  markdowns. 
D)  variable costs. 
E)  keystoning prices. 
A)  rain checks. 
B)  fixed costs. 
C)  markdowns. 
D)  variable costs. 
E)  keystoning prices.

At the new toy store that opened near his home, Ryan noticed all the products were priced at $.49, $.79, or $.99 endings. What type of pricing is the store following?

How does an improved inventory management through the use of an everyday low-pricing (EDLP) strategy benefit retailers?

An agreement between retailers that are in direct competition with each other to set the same prices is called

Which of the following statements does not describe a benefit of markdowns for a retailer?

A commonly used measure of price sensitivity is

Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she has become popular because she gives her day-old produce to the local charity. Which of the following benefits does Jenny gain by donating produce to the local charity?

Which of the following pricing practices employs tactics such as inadequate inventory for advertised products?

A price experiment

What are the ways markdown merchandise can be consolidated?

Retailers frequently offer a limited number of predetermined price points within a merchandise category, a practice known as zone pricing.

The approach of using a 50 percent markup is known as ________ and would result in the retail price being double the cost.

The Bow Shop caters to archery enthusiasts. It sells bows starting at $300. The maintained markup used by the store is 60 percent. Reductions are estimated to be 12 percent. Calculate the store's planned initial markup percentage.

Eunice buys a worm farm. She plans to sell a small carton of worms to people who want to fish for $3. Her fixed costs are $1,201, and her variable cost for each carton sold is $.75. How many cartons of worms does Eunice need to sell to reach her break-even quantity?

________ is the practice of offering two or more different products or services for sale at one price.

Some retailers liquidate end-of-season merchandise to retailers like TJ Maxx, who in return sell it at a deep discount. What is the benefit to the retailer who liquidates merchandise using this strategy?

________ is the actual sales realized for the merchandise minus its costs of the merchandise sold.

What legal and ethical pricing issues need to be considered when retailers set their prices?

A ________ is the price against which buyers compare the actual selling price of the product, and thus it facilitates their evaluation process.

Reductions in the initial retail prices are known as

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 13: Retail Pricing

At the new toy store that opened near his home, Ryan noticed all the products were priced at $.49, $.79, or $.99 endings. What type of pricing is the store following?

How does an improved inventory management through the use of an everyday low-pricing (EDLP) strategy benefit retailers?

An agreement between retailers that are in direct competition with each other to set the same prices is called

Which of the following statements does not describe a benefit of markdowns for a retailer?

A commonly used measure of price sensitivity is

Jenny runs a produce stand in an inner-city neighborhood. With the recent layoffs, she has become popular because she gives her day-old produce to the local charity. Which of the following benefits does Jenny gain by donating produce to the local charity?

Which of the following pricing practices employs tactics such as inadequate inventory for advertised products?

A price experiment

What are the ways markdown merchandise can be consolidated?

Retailers frequently offer a limited number of predetermined price points within a merchandise category, a practice known as zone pricing.

The approach of using a 50 percent markup is known as ________ and would result in the retail price being double the cost.

The Bow Shop caters to archery enthusiasts. It sells bows starting at $300. The maintained markup used by the store is 60 percent. Reductions are estimated to be 12 percent. Calculate the store's planned initial markup percentage.

Eunice buys a worm farm. She plans to sell a small carton of worms to people who want to fish for $3. Her fixed costs are $1,201, and her variable cost for each carton sold is $.75. How many cartons of worms does Eunice need to sell to reach her break-even quantity?

________ is the practice of offering two or more different products or services for sale at one price.

Some retailers liquidate end-of-season merchandise to retailers like TJ Maxx, who in return sell it at a deep discount. What is the benefit to the retailer who liquidates merchandise using this strategy?

________ is the actual sales realized for the merchandise minus its costs of the merchandise sold.

What legal and ethical pricing issues need to be considered when retailers set their prices?

A ________ is the price against which buyers compare the actual selling price of the product, and thus it facilitates their evaluation process.

Reductions in the initial retail prices are known as

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Customer Relationship Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters