Question 1

A 100 percent markup at cost equals what markup at retail?

Accepted Answer

A) 20 percent 
B) 40 percent 
C) 50 percent 
D) 80 percent 
A) 20 percent 
B) 40 percent 
C) 50 percent 
D) 80 percent C

Question 2

Retailers can use price as an adaptive mechanism with price adjustments.

Accepted Answer

A) True 
 B)False  True

Question 3

A retailer able to develop a distinctive niche can utilize _____.

Accepted Answer

A) pricing at the market 
B) unit pricing 
C) pricing below the market 
D) administered pricing 
A) pricing at the market 
B) unit pricing 
C) pricing below the market 
D) administered pricing D

Question 4

Item price removal is controversial since consumers _____.

Accepted Answer

A) cannot determine a product's ingredients 
B) will have less price advertising 
C) cannot choose generic brands 
D) find it difficult to verify the prices of items purchased 
A) cannot determine a product's ingredients 
B) will have less price advertising 
C) cannot choose generic brands 
D) find it difficult to verify the prices of items purchased

Question 5

Which pricing strategy is proper when customers are highly sensitive to price,low prices discourage actual and potential competition,and total retail costs do not increase as much as sales volume increases?

Accepted Answer

A) early recovery of cash 
B) market skimming 
C) selling against the brand 
D) market penetration 
A) early recovery of cash 
B) market skimming 
C) selling against the brand 
D) market penetration

Question 6

Horizontal price fixing involves an agreement _____.

Accepted Answer

A) among manufacturers,among wholesalers,or among retailers to set certain prices 
B) to charge larger retail firms lower prices 
C) by retailers to charge manufacturer suggested list prices 
D) by retailers not to sell merchandise below cost 
A) among manufacturers,among wholesalers,or among retailers to set certain prices 
B) to charge larger retail firms lower prices 
C) by retailers to charge manufacturer suggested list prices 
D) by retailers not to sell merchandise below cost

Question 7

In prestige pricing,the demand curve is negatively sloped at all price levels.

Accepted Answer

A) True 
 B)False

Question 8

It is currently illegal for manufacturers and wholesalers to control ultimate retail prices for their goods under any circumstances.

Accepted Answer

A) True 
 B)False

Question 9

Big retailers attempt to destroy competition by selling goods and services at extremely low prices in _____.

Accepted Answer

A) price discrimination 
B) predatory pricing 
C) bait-and-switch advertising 
D) selling against the brand 
A) price discrimination 
B) predatory pricing 
C) bait-and-switch advertising 
D) selling against the brand

Question 10

The major difference between bait-and-switch advertising and "trading the customer up" to a more expensive substitute is that in bait-and-switch advertising,the lower-priced item is _____.

Accepted Answer

A) not intended to be sold 
B) sold below cost 
C) sold to reduce competition from other retailers 
D) sold to reduce seasonal sales trends 
A) not intended to be sold 
B) sold below cost 
C) sold to reduce competition from other retailers 
D) sold to reduce seasonal sales trends

Question 11

A one-price policy does not allow _____.

Accepted Answer

A) markdowns and/or markups 
B) employee discounts 
C) quantity discounts 
D) bargaining 
A) markdowns and/or markups 
B) employee discounts 
C) quantity discounts 
D) bargaining

Question 12

In a market penetration strategy,goals are generally expressed in terms of sales and market share.

Accepted Answer

A) True 
 B)False

Question 13

A market skimming strategy should be used when consumer price elasticity of demand is _____.

Accepted Answer

A) negative 
B) elastic 
C) inelastic 
D) unitary 
A) negative 
B) elastic 
C) inelastic 
D) unitary

Question 14

Goods priced at $.87,$1.95,and $99,990 illustrate _____.

Accepted Answer

A) leader pricing 
B) odd pricing 
C) flexible pricing 
D) multiple-unit pricing 
A) leader pricing 
B) odd pricing 
C) flexible pricing 
D) multiple-unit pricing

Question 15

A stationery retailer generally prices portable copiers using a 30 percent markup.The retailer expects to sell 125 portable copiers at the 30 percent markup.How many units would it have to sell at a 25 percent markup to maintain the same gross profit?

Accepted Answer

A) 150 
B) 175 
C) 200 
D) The answer cannot be determined from the information provided. 
A) 150 
B) 175 
C) 200 
D) The answer cannot be determined from the information provided.

Question 16

In administered pricing,retailers seek to develop a niche and reduce the effect of price competition.

Accepted Answer

A) True 
 B)False

Question 17

Price discrimination is allowable under the Robinson-Patman Act if _____.

Accepted Answer

A) price differences can be justified by differences in costs 
B) large retailers exert bargaining power 
C) large retailers threaten to produce their own brand 
D) products have different brand designations 
A) price differences can be justified by differences in costs 
B) large retailers exert bargaining power 
C) large retailers threaten to produce their own brand 
D) products have different brand designations

Question 18

While the _____ markup is based on the original retail value,the _____ markup is based on actual prices received for the merchandise.

Accepted Answer

A) initial;actual 
B) initial;maintained 
C) planned;actual 
D) planned;maintained 
A) initial;actual 
B) initial;maintained 
C) planned;actual 
D) planned;maintained

Question 19

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

Accepted Answer

A) 75 percent 
B) 150 percent 
C) 300 percent 
D) 400 percent 
A) 75 percent 
B) 150 percent 
C) 300 percent 
D) 400 percent

Question 20

A jewelry store has been offered a special price on a line of pearls.These pearls cost $160 per strand and can retail at $360 per strand.What markup will the jeweler obtain?

Accepted Answer

A) 41 percent 
B) 56 percent 
C) 140 percent 
D) 227 percent 
A) 41 percent 
B) 56 percent 
C) 140 percent 
D) 227 percent

A 100 percent markup at cost equals what markup at retail?

Retailers can use price as an adaptive mechanism with price adjustments.

A retailer able to develop a distinctive niche can utilize _____.

Item price removal is controversial since consumers _____.

Which pricing strategy is proper when customers are highly sensitive to price,low prices discourage actual and potential competition,and total retail costs do not increase as much as sales volume increases?

Horizontal price fixing involves an agreement _____.

In prestige pricing,the demand curve is negatively sloped at all price levels.

It is currently illegal for manufacturers and wholesalers to control ultimate retail prices for their goods under any circumstances.

Big retailers attempt to destroy competition by selling goods and services at extremely low prices in _____.

The major difference between bait-and-switch advertising and "trading the customer up" to a more expensive substitute is that in bait-and-switch advertising,the lower-priced item is _____.

A one-price policy does not allow _____.

In a market penetration strategy,goals are generally expressed in terms of sales and market share.

A market skimming strategy should be used when consumer price elasticity of demand is _____.

Goods priced at $.87,$1.95,and $99,990 illustrate _____.

A stationery retailer generally prices portable copiers using a 30 percent markup.The retailer expects to sell 125 portable copiers at the 30 percent markup.How many units would it have to sell at a 25 percent markup to maintain the same gross profit?

In administered pricing,retailers seek to develop a niche and reduce the effect of price competition.

Price discrimination is allowable under the Robinson-Patman Act if _____.

While the _ markup is based on the original retail value,the _ markup is based on actual prices received for the merchandise.

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

A jewelry store has been offered a special price on a line of pearls.These pearls cost $160 per strand and can retail at $360 per strand.What markup will the jeweler obtain?

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

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

Financial Merchandise Management

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

Exam 17: Pricing in Retailing

A 100 percent markup at cost equals what markup at retail?

Retailers can use price as an adaptive mechanism with price adjustments.

A retailer able to develop a distinctive niche can utilize _____.

Item price removal is controversial since consumers _____.

Which pricing strategy is proper when customers are highly sensitive to price,low prices discourage actual and potential competition,and total retail costs do not increase as much as sales volume increases?

Horizontal price fixing involves an agreement _____.

In prestige pricing,the demand curve is negatively sloped at all price levels.

It is currently illegal for manufacturers and wholesalers to control ultimate retail prices for their goods under any circumstances.

Big retailers attempt to destroy competition by selling goods and services at extremely low prices in _____.

The major difference between bait-and-switch advertising and "trading the customer up" to a more expensive substitute is that in bait-and-switch advertising,the lower-priced item is _____.

A one-price policy does not allow _____.

In a market penetration strategy,goals are generally expressed in terms of sales and market share.

A market skimming strategy should be used when consumer price elasticity of demand is _____.

Goods priced at $.87,$1.95,and $99,990 illustrate _____.

A stationery retailer generally prices portable copiers using a 30 percent markup.The retailer expects to sell 125 portable copiers at the 30 percent markup.How many units would it have to sell at a 25 percent markup to maintain the same gross profit?

In administered pricing,retailers seek to develop a niche and reduce the effect of price competition.

Price discrimination is allowable under the Robinson-Patman Act if _____.

While the _____ markup is based on the original retail value,the _____ markup is based on actual prices received for the merchandise.

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

A jewelry store has been offered a special price on a line of pearls.These pearls cost $160 per strand and can retail at $360 per strand.What markup will the jeweler obtain?

An Introduction to Retailing

Building and Sustaining Relationships in Retailing

Strategic Planning in Retailing

Retail Institutions by Ownership

Retail Institutions by Store-Based Strategy

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

Financial Merchandise Management

Establishing and Maintaining a Retail Image

Promotional Strategy

Integrating and Controlling the Retail Strategy

Filters

While the _ markup is based on the original retail value,the _ markup is based on actual prices received for the merchandise.