Question 1

Item price removal enables supermarkets to ________.

Accepted Answer

A)  mark prices for goods on shelves or signs and not on individual items 
B)  charge the higher of two prices, if two prices are on a single package 
C)  sell goods for below cost if they are matching a nearby competitor 
D)  selectively mark prices on "key" items only 
A)  mark prices for goods on shelves or signs and not on individual items 
B)  charge the higher of two prices, if two prices are on a single package 
C)  sell goods for below cost if they are matching a nearby competitor 
D)  selectively mark prices on "key" items only A

Question 2

Economic consumers are more price elastic than personalizing consumers.

Accepted Answer

A) True 
 B)False  True

Question 3

Direct product profitability (DPP)is an example of ________.

Accepted Answer

A)  a variable markup policy 
B)  pricing at the market 
C)  administered pricing 
D)  unit pricing 
A)  a variable markup policy 
B)  pricing at the market 
C)  administered pricing 
D)  unit pricing A

Question 4

A 60 percent markup at retail equals what markup at cost?

Accepted Answer

A)  52 percent 
B)  60 percent 
C)  150 percent 
D)  200 percent 
A)  52 percent 
B)  60 percent 
C)  150 percent 
D)  200 percent

Question 5

The major difference between an initial markup and a maintained markup is that the maintained markup reflects ________.

Accepted Answer

A)  actual (not planned) retail operating expenses 
B)  planned (not actual) retail operating expenses 
C)  planned shortages and overages 
D)  actual prices received and actual shortages 
A)  actual (not planned) retail operating expenses 
B)  planned (not actual) retail operating expenses 
C)  planned shortages and overages 
D)  actual prices received and actual shortages

Question 6

Loss leaders are viewed as being particularly attractive by many retailers since they ________.

Accepted Answer

A)  generate consumer store traffic throughout the store 
B)  ultimately destroy small, marginal competitors 
C)  are legal 
D)  are not forms of deceptive advertising according to FTC guidelines 
A)  generate consumer store traffic throughout the store 
B)  ultimately destroy small, marginal competitors 
C)  are legal 
D)  are not forms of deceptive advertising according to FTC guidelines

Question 7

The intent of vertical price-fixing legislation was to protect ________.

Accepted Answer

A)  large retail chains 
B)  small manufacturers 
C)  small, full-service retailers 
D)  final consumers 
A)  large retail chains 
B)  small manufacturers 
C)  small, full-service retailers 
D)  final consumers

Question 8

Explain the advantages and disadvantages of the use of everyday low pricing,a one-price policy,leader pricing,and price lining to a retailer.

Accepted Answer

Everyday low pricing (EDLP) offers the

Question 9

When the price elasticity of demand is unitary and prices go down,total ________.

Accepted Answer

A)  revenues stay the same 
B)  revenues decline 
C)  revenues increase 
D)  profits increase 
A)  revenues stay the same 
B)  revenues decline 
C)  revenues increase 
D)  profits increase

Question 10

An argument used by manufacturers and wholesalers for the legalization of vertical price fixing is negative consumer perceptions of their products due to prestige pricing.

Accepted Answer

A) True 
 B)False

Question 11

The difference between initial markups and maintained markups is due to ________.

Accepted Answer

A)  different terms offered to larger customers 
B)  seasonal discounts 
C)  markdowns, added markups, shortages, and discounts 
D)  revisions in planned profits 
A)  different terms offered to larger customers 
B)  seasonal discounts 
C)  markdowns, added markups, shortages, and discounts 
D)  revisions in planned profits

Question 12

The price elasticity of demand for a product can be elastic,inelastic,and unitary over different price levels.

Accepted Answer

A) True 
 B)False

Question 13

The Robinson-Patman Act was developed to ________.

Accepted Answer

A)  provide lower prices to final consumers 
B)  make price conspiracies between channel members illegal 
C)  allow smaller retailers to receive similar prices to large retail chains that had high bargaining power 
D)  limit price competition among retailers 
A)  provide lower prices to final consumers 
B)  make price conspiracies between channel members illegal 
C)  allow smaller retailers to receive similar prices to large retail chains that had high bargaining power 
D)  limit price competition among retailers

Question 14

What is the role of demand-,cost-,and competition-oriented pricing in developing and implementing a price strategy?

Accepted Answer

Demand-, cost-, and competition-oriented

Question 15

Unit pricing requires that retailers list the price of each item in a conspicuous location on the item.

Accepted Answer

A) True 
 B)False

Question 16

According to traditional economic pricing theory,price elasticity tends to be a negative number.

Accepted Answer

A) True 
 B)False

Question 17

Convert each of the following markup percentages at retail to markup percentages at cost: 30,40,50,and 60.

Accepted Answer

To convert markup percentages at retail

Question 18

In predatory pricing,large retailers attempt to destroy smaller retailers by ________.

Accepted Answer

A)  vertical integration 
B)  conspiring with manufacturers to refuse to sell to smaller retailers 
C)  selling goods at very low prices (sometimes even below cost) 
D)  providing free warranties with selected goods 
A)  vertical integration 
B)  conspiring with manufacturers to refuse to sell to smaller retailers 
C)  selling goods at very low prices (sometimes even below cost) 
D)  providing free warranties with selected goods

Question 19

A computer retailer generally prices portable computers using a 25 percent markup.The firm expects to sell 100 portable computers at the 25 percent markup.How many units would it have to sell at a 15 percent discount from the original price to maintain the same gross profit?

Accepted Answer

A)  115 
B)  167 
C)  250 
D)  The answer cannot be determined from the information provided. 
A)  115 
B)  167 
C)  250 
D)  The answer cannot be determined from the information provided.

Question 20

Many manufacturers feel that vertical price fixing should be legal since it protects ________.

Accepted Answer

A)  large chain organizations 
B)  final consumers seeking lower prices 
C)  manufacturers seeking large promotional budgets for innovative products 
D)  a brand's image that may be hurt from repeated price cutting by retailers 
A)  large chain organizations 
B)  final consumers seeking lower prices 
C)  manufacturers seeking large promotional budgets for innovative products 
D)  a brand's image that may be hurt from repeated price cutting by retailers

Item price removal enables supermarkets to ________.

Economic consumers are more price elastic than personalizing consumers.

Direct product profitability (DPP)is an example of ________.

A 60 percent markup at retail equals what markup at cost?

The major difference between an initial markup and a maintained markup is that the maintained markup reflects ________.

Loss leaders are viewed as being particularly attractive by many retailers since they ________.

The intent of vertical price-fixing legislation was to protect ________.

Explain the advantages and disadvantages of the use of everyday low pricing,a one-price policy,leader pricing,and price lining to a retailer.

When the price elasticity of demand is unitary and prices go down,total ________.

An argument used by manufacturers and wholesalers for the legalization of vertical price fixing is negative consumer perceptions of their products due to prestige pricing.

The difference between initial markups and maintained markups is due to ________.

The price elasticity of demand for a product can be elastic,inelastic,and unitary over different price levels.

The Robinson-Patman Act was developed to ________.

What is the role of demand-,cost-,and competition-oriented pricing in developing and implementing a price strategy?

Unit pricing requires that retailers list the price of each item in a conspicuous location on the item.

According to traditional economic pricing theory,price elasticity tends to be a negative number.

Convert each of the following markup percentages at retail to markup percentages at cost: 30,40,50,and 60.

In predatory pricing,large retailers attempt to destroy smaller retailers by ________.

A computer retailer generally prices portable computers using a 25 percent markup.The firm expects to sell 100 portable computers at the 25 percent markup.How many units would it have to sell at a 15 percent discount from the original price to maintain the same gross profit?

Many manufacturers feel that vertical price fixing should be legal since it protects ________.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy Mix

Web, nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise Plans

Financial Merchandise Management

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

Exam 17: Pricing in Retailing

Item price removal enables supermarkets to ________.

Economic consumers are more price elastic than personalizing consumers.

Direct product profitability (DPP)is an example of ________.

A 60 percent markup at retail equals what markup at cost?

The major difference between an initial markup and a maintained markup is that the maintained markup reflects ________.

Loss leaders are viewed as being particularly attractive by many retailers since they ________.

The intent of vertical price-fixing legislation was to protect ________.

Explain the advantages and disadvantages of the use of everyday low pricing,a one-price policy,leader pricing,and price lining to a retailer.

When the price elasticity of demand is unitary and prices go down,total ________.

An argument used by manufacturers and wholesalers for the legalization of vertical price fixing is negative consumer perceptions of their products due to prestige pricing.

The difference between initial markups and maintained markups is due to ________.

The price elasticity of demand for a product can be elastic,inelastic,and unitary over different price levels.

The Robinson-Patman Act was developed to ________.

What is the role of demand-,cost-,and competition-oriented pricing in developing and implementing a price strategy?

Unit pricing requires that retailers list the price of each item in a conspicuous location on the item.

According to traditional economic pricing theory,price elasticity tends to be a negative number.

Convert each of the following markup percentages at retail to markup percentages at cost: 30,40,50,and 60.

In predatory pricing,large retailers attempt to destroy smaller retailers by ________.

A computer retailer generally prices portable computers using a 25 percent markup.The firm expects to sell 100 portable computers at the 25 percent markup.How many units would it have to sell at a 15 percent discount from the original price to maintain the same gross profit?

Many manufacturers feel that vertical price fixing should be legal since it protects ________.

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy Mix

Web, nonstore-Based, and Other Forms of Nontraditional Retailing

Identifying and Understanding Consumers

Information Gathering and Processing in Retailing

Trading-Area Analysis

Site Selection

Retail Organization and Human Resource Management

Operations Management: Financial Dimensions

Operations Management: Operational Dimensions

Developing Merchandise Plans

Implementing Merchandise Plans

Financial Merchandise Management

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters