Question 1

Neal was considering the use of coupons for canned vegetables at his corner grocery.He knows coupons can encourage customers to try his store,or even help them to purchase additional items as they shop,but he is concerned about:

Accepted Answer

A)   price-sensitive customers avoiding his store
B)   the promotion stealing sales of canned vegetables in the future
C)   decreasing visits from loyal customers
D)   customers forgetting to mail in the proof-of-purchase to the manufacturers
E)   variable pricingF) A) and B)
G) B) and D)

Question 2

If planned net sales equal $140,000 and estimated cost of goods sold equals $53,200,what is the maintained markup percentage?

Accepted Answer

($140,000 ...

Question 3

What are the benefits of price lining?

Accepted Answer

Benefits of price lining include (1)conf...

Question 4

What is one way some customers initialize first-degree price discrimination?

Accepted Answer

A)   Walking out
B)   Haggling
C)   Shoplifting
D)   Bargain basement shopping only
E)   Threatening to shop elsewhereF) A) and E)
G) A) and D)

Question 5

What is the difference between price bundling and multiple-unit pricing?

Accepted Answer

Price bundling is the practice of offeri...

Question 6

What is the difference between first-degree price discrimination and second-degree price discrimination?

Accepted Answer

The difference between the two is that w...

Question 7

The owner of a tobacco shop has estimated net sales of $75,100 for next year,with her gross cost of goods sold equalling 35 percent of net sales.Her maintained markup percentage should be:

Accepted Answer

A)   11.85 percent
B)   65 percent
C)   150 percent
D)   75 percent
E)   Cannot be determined from the information givenF) A) and D)
G) C) and E)

Question 8

Retailers set prices high enough so that:

Accepted Answer

A)   after markdowns, the planned maintained markup will be achieved
B)   merchandise looks attractive to shoppers
C)   a variety of vendors cater to the retailers
D)   a value is given to the merchandise because of the price
E)   all of theseF) C) and E)
G) A) and D)

Question 9

Prices are based on what the customer would expect to be paying or be willing to pay in the ______________ method.

Accepted Answer

A)   demand-oriented
B)   volume-oriented
C)   supply-oriented
D)   profit-oriented
E)   cost-orientedF) A) and B)
G) None of the above

Question 10

___________________ is a set of algorithms that monitors merchandise sales,promotions,competitors' actions,and other factors to determine the optimal (most profitable)price and timing for merchandising activities,especially markdowns.

Accepted Answer

Merchandis...

Question 11

In a(n)____________ pricing strategy,retailers offer prices that are sometimes above their competition's EDLP,but they use advertising to promote frequent sales.

Accepted Answer

The answer of In a(n)____________ pricing strategy,retailers offer prices that...

Question 12

What are the strengths of operating with a high/low pricing strategy?

Accepted Answer

(1)The high/low strategy allows retailer...

Question 13

What was the initial reason for odd pricing?

Accepted Answer

A)   It saved on distribution costs
B)   It reduced losses due to employee theft of cash
C)   It offered a limited number of predetermined price points making pricing easier
D)   It eliminated confusion when a customer shopped in different locations
E)   It was used to increase traffic flowF) All of the above
G) A) and E)

Question 14

A pricing experiment:

Accepted Answer

A)   is a method of determining the most profitable price for a product
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 described by all of theseF) B) and E)
G) C) and D)

Question 15

What type of retailer is most likely to use first-degree price discrimination?

Accepted Answer

A)   A candy store
B)   A sub shop
C)   A newspaper stand
D)   A pet store
E)   An antiques shopF) A) and E)
G) A) and B)

Question 16

When using the ______________ method,the retail price is determined by adding a fixed percentage to the cost of the merchandise.

Accepted Answer

A)   demand-oriented
B)   volume-oriented
C)   supply-oriented
D)   profit-oriented
E)   cost-orientedF) A) and C)
G) B) and C)

Question 17

Why is there a difference between initial markup and maintained markup?

Accepted Answer

There is a difference between initial ma...

Question 18

By using a(n)_______________ pricing strategy,retailers employ markdowns to promote merchandise to increase sales.

Accepted Answer

The answer of By using a(n)_______________ pricing strategy,retailers employ markdowns...

Question 19

The strength of the cost-oriented method of setting retail prices is:

Accepted Answer

A)   it considers the needs of the consumer
B)   it is consistent with the marketing concept
C)   it determines profit-maximization prices
D)   it is designed to achieve target levels of profit
E)   it is described by all of theseF) A) and E)
G) A) and B)

Question 20

What can a retailer do to ensure consistency between their market strategy and their price position?

Accepted Answer

A)   They can collect and analyze price data from their competitors to determine if the store is maintaining their desired market position compared to their competition
B)   They can consistently offer lower prices and allow the consumer to determine market share
C)   They can purchase more of the merchandise to relay the lower prices onto the consumer
D)   They can price for margins and create a better shopping experience
E)   None of theseF) C) and E)
G) B) and E)

Exam 12: Retail Pricing

The owner of a tobacco shop has estimated net sales of $75,100 for next year,with her gross cost of goods sold equalling 35 percent of net sales.Her maintained markup percentage should be:

Correct AnswerverifiedShow Answer

If planned net sales equal $140,000 and estimated cost of goods sold equals $53,200,what is the maintained markup percentage?

Correct Answerverified($140,000 ...View AnswerShow Answer

Why is there a difference between initial markup and maintained markup?

Correct AnswerverifiedThere is a difference between initial ma...View AnswerShow Answer

By using a(n)_______________ pricing strategy,retailers employ markdowns to promote merchandise to increase sales.

Correct AnswerverifiedShow Answer

What are the benefits of price lining?

Correct AnswerverifiedBenefits of price lining include (1)conf...View AnswerShow Answer

A pricing experiment:

Correct AnswerverifiedShow Answer

What is the difference between price bundling and multiple-unit pricing?

Correct AnswerverifiedPrice bundling is the practice of offeri...View AnswerShow Answer

What type of retailer is most likely to use first-degree price discrimination?

Correct AnswerverifiedShow Answer

Prices are based on what the customer would expect to be paying or be willing to pay in the ______________ method.

Correct AnswerverifiedShow Answer

What is one way some customers initialize first-degree price discrimination?

Correct AnswerverifiedShow Answer

Retailers set prices high enough so that:

Correct AnswerverifiedShow Answer

What is the difference between first-degree price discrimination and second-degree price discrimination?

Correct AnswerverifiedThe difference between the two is that w...View AnswerShow Answer

What can a retailer do to ensure consistency between their market strategy and their price position?

Correct AnswerverifiedShow Answer

___________________ is a set of algorithms that monitors merchandise sales,promotions,competitors' actions,and other factors to determine the optimal (most profitable)price and timing for merchandising activities,especially markdowns.

Correct AnswerverifiedMerchandis...View AnswerShow Answer

The strength of the cost-oriented method of setting retail prices is:

Correct AnswerverifiedShow Answer

When using the ______________ method,the retail price is determined by adding a fixed percentage to the cost of the merchandise.

Correct AnswerverifiedShow Answer

In a(n)____________ pricing strategy,retailers offer prices that are sometimes above their competition's EDLP,but they use advertising to promote frequent sales.

Correct AnswerverifiedShow Answer

What was the initial reason for odd pricing?

Correct AnswerverifiedShow Answer

Neal was considering the use of coupons for canned vegetables at his corner grocery.He knows coupons can encourage customers to try his store,or even help them to purchase additional items as they shop,but he is concerned about:

Correct AnswerverifiedShow Answer

What are the strengths of operating with a high/low pricing strategy?

Correct Answerverified(1)The high/low strategy allows retailer...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
($140,000 ...
View Answer

Correct Answer
verified
There is a difference between initial ma...
View Answer

Correct Answer
verified

Correct Answer
verified
Benefits of price lining include (1)conf...
View Answer

Correct Answer
verified

Correct Answer
verified
Price bundling is the practice of offeri...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The difference between the two is that w...
View Answer

Correct Answer
verified

Correct Answer
verified
Merchandis...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(1)The high/low strategy allows retailer...
View Answer