Flexible element of a retailer's strategy mix is. A merchandise assortment
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Chapter 17 1) The sensitivity of consumers to price changes is measured by the ________. B) sales to price coefficient C) coefficient of elasticity D) price elasticity of demand Answer: D Diff: 2 Page Ref: 466 Skill: Terminology/Concept
A) price elastic B) unitary elasticity C) price inelastic D) low Answer: A Diff: 1 Page Ref: 466 Skill: Terminology/Concept 3) When the price elasticity of demand is high and prices go up, total ________. A) revenues stay the same B) revenues decline C) revenues increase D) profits increase Answer: B Diff: 2 Page Ref: 466 Skill: Terminology/Concept 4) When the price elasticity of demand is unitary and prices go down, total ________. A) revenues stay the same B) revenues decline C) revenues increase D) profits increase Answer: A Diff: 1 Page Ref: 466 Skill: Terminology/Concept 5) Price elasticity of demand is negative since ________. A) consumers are generally price conscious B) quantities sold decline as prices increase C) there are few status-oriented consumers D) most retailers use markup pricing Answer: B Diff: 2 Page Ref: 466 Skill: Terminology/Concept 6) Horizontal price fixing involves an agreement ________. A) to charge retail firms lower prices in areas with an undesirable competitor B) by any channel member not to sell merchandise below cost C) among manufacturers, among wholesalers, or among retailers to set prices D) by retailers to charge the price level suggested by manufacturers or wholesalers Answer: C Diff: 1 Page Ref: 468 Skill: Terminology/Concept 7) In vertical price fixing, ________. A) channel members conspire to set retail prices at given levels B) channel members agree not to sell merchandise below their cost C) retailers have no intention of selling advertised goods D) manufacturers or wholesalers are able to control the retail prices of their goods and services Answer: D Diff: 1 Page Ref: 468-469 Skill: Terminology/Concept 8) The intent of vertical price-fixing legislation was to protect ________. A) large retail chains B) small manufacturers C) small, full-service retailers D) final consumers Answer: C Diff: 2 Page Ref: 469 Skill: Terminology/Concept 9) Manufacturers and wholesalers can legally control retail prices by ________. A) charging price-cutting retailers higher prices B) limiting sales to interstate commerce C) using consignment selling D) refusing to sell to price-cutting retailers Answer: C Diff: 2 Page Ref: 469 Skill: Terminology/Concept 10) Price-discrimination legislation is designed to limit the ability of ________. A) retailers to charge less than a manufacturer's or wholesaler's suggested list price B) manufacturers and wholesalers to grant large discounts or favorable terms to large retailers when the discount could not be justified by cost savings C) manufacturers, wholesalers, and retailers from conspiring to fix retail prices D) manufacturers from setting artificially-low prices with the intent of destroying competition Answer: B Diff: 2 Page Ref: 469 Skill: Terminology/Concept 11) Price discrimination is legal under the Robinson-Patman Act when ________. A) different brand names are placed on a product B) lower prices are offered in the form of favorable purchase terms (such as credit allowances) C) a large customer threatens to cancel an order unless the seller reduces its price D) price differences are equal to or less than a supplier's cost savings Answer: D Diff: 1 Page Ref: 469 Skill: Terminology/Concept 12) In predatory pricing, large retailers attempt to destroy smaller retailers by ________. 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 Answer: C Diff: 1 Page Ref: 470 Skill: Terminology/Concept 13) Retailers typically use loss leaders to ________. A) increase store traffic B) switch customers to other goods with higher profit margins C) increase their bargaining power with select suppliers D) practice opportunistic buying Answer: A Diff: 1 Page Ref: 420 Skill: Terminology/Concept 14) Unit pricing laws are necessary because of ________. A) deceptive price advertising by retailers B) scanning and the Universal Product Code C) item-price removal by supermarket chains D) the presence of many different-sized packages Answer: D Diff: 2 Page Ref: 470 Skill: Terminology/Concept 15) Item price removal enables supermarkets to ________. 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 Answer: A Diff: 1 Page Ref: 470 Skill: Terminology/Concept 16) A retailer typically has no intention of selling a promoted good or service in ________. A) unit pricing B) item price removal C) price discrimination D) bait-and-switch advertising Answer: D Diff: 1 Page Ref: 471 Skill: Terminology/Concept 17) Which strategy does not enable a retailer to control retail prices? A) stocking private brands B) selling gray market goods C) selling pre-sold manufacturer brands D) centralizing purchases with few manufacturers Answer: C Diff: 2 Page Ref: 471 Skill: Terminology/Concept 18) In selling against the brand, ________. A) manufacturer brands are given secondary shelf-space locations B) retailers require slotting allowances from manufacturers for shelf space C) retailers disparage manufacturer brands D) retailers charge artificially high prices on manufacturer brands in order to sell their own private labels Answer: D Diff: 1 Page Ref: 471 Skill: Terminology/Concept 19) In price guarantees, a manufacturer protects a retailer by ________. A) indemnifying it for any antitrust action against the firm caused by the manufacturer's illegal action B) refunding the difference if a retailer must lower its retail price C) offering to sell its private-label merchandise if required D) refusing to sell to price-cutting retailers Answer: B Diff: 1 Page Ref: 471 Skill: Terminology/Concept 20) Individual retailers have no control over the setting of retail prices in ________. A) deregulated market pricing B) market pricing C) administered pricing D) government-controlled pricing Answer: B Diff: 1 Page Ref: 471-472 Skill: Terminology/Concept 21) A retailer able to develop a strongly differentiated retail mix can utilize ________. B) pricing below the market C) deregulated market pricing D) administered pricing Answer: D Diff: 1 Page Ref: 472 Skill: Terminology/Concept 22) An aggressive low-price strategy designed to sell a high volume of goods is ________. A) market skimming pricing B) market penetration pricing C) the price-quality association D) markup pricing Answer: B Diff: 1 Page Ref: 473 Skill: Terminology/Concept 23) Market penetration is an appropriate strategy when ________. A) a retailer seeks to attract consumers less concerned with price and more concerned with service, assortment, and status B) new competitors are unlikely to enter the market C) low prices discourage actual and potential competition D) early recovery of cash is a goal of the retailer Answer: C Diff: 2 Page Ref: 473 Skill: Terminology/Concept 24) The price floor represents the ________. A) highest price a consumer will pay B) lowest acceptable price to a retailer C) lowest competitor's price D) lowest minimum price that is legal according to sales-below-cost laws Answer: B Diff: 1 Page Ref: 476 Skill: Terminology/Concept 25) Which of the following suggests that too low a price may hinder demand? A) bait advertising B) sales-below-cost laws C) prestige pricing D) predatory pricing laws Answer: C Diff: 1 Page Ref: 476 Skill: Terminology/Concept 26) The most widely practiced retail pricing technique is ________. A) cost-oriented pricing B) prestige pricing C) competition-oriented pricing D) demand-oriented pricing Answer: A Diff: 1 Page Ref: 476 Skill: Terminology/Concept 27) Markups in retailing are typically computed on the basis of ________. A) merchandise cost B) merchandise cost plus freight C) retail selling price D) retail selling price plus freight Answer: C Diff: 1 Page Ref: 476 Skill: Terminology/Concept 28) The difference between initial markups and maintained markups is due to ________. A) different terms offered to larger customers C) markdowns, added markups, shortages, and discounts D) revisions in planned profits Answer: C Diff: 2 Page Ref: 478 Skill: Terminology/Concept 29) Direct product profitability (DPP) is an example of ________. A) a variable markup policy B) pricing at the market C) administered pricing D) unit pricing Answer: A Diff: 2 Page Ref: 479 Skill: Terminology/Concept 30) Which pricing strategy seeks to stabilize demand throughout the year? A) variable pricing B) everyday low pricing (EDLP) C) one-price policy D) flexible pricing Answer: B Diff: 2 Page Ref: 481 Skill: Terminology/Concept 31) A retailer that seeks to alter prices to reflect fluctuations in costs or consumer demand should practice ________. A) variable pricing B) customary pricing C) a one-price policy D) price lining Answer: A Diff: 1 Page Ref: 482 Skill: Terminology/Concept 32) The opposite of setting prices by negotiation or bargaining is ________. A) leader pricing B) odd pricing C) customary pricing D) a one-price policy Answer: D Diff: 2 Page Ref: 483 Skill: Terminology/Concept 33) In which pricing technique does a retailer advertise and sell key items in the product assortment at less than the usual profit margin? A) price lining B) leader pricing C) odd pricing D) bait-and-switch advertising Answer: B Diff: 1 Page Ref: 484 Skill: Terminology/Concept 34) A retailer sells men's suits for $179, $229, $309, and $359. This illustrates ________. A) price lining B) leader pricing C) odd pricing D) bait advertising Answer: A Diff: 2 Page Ref: 485 Skill: Terminology/Concept 35) A major advantage of an early markdown policy is that ________. A) consumer interest is heightened during storewide clearances B) merchandise offered for sale is fresh C) goods can be resold during next season without any need for a price reduction D) the retailer has greater opportunity to sell the good Answer: B Diff: 2 Page Ref: 487 Skill: Terminology/Concept 36) Price elasticity is ________ when the urgency for a purchase is low and the number of acceptable substitutes is high. A) inelastic B) elastic C) unitary D) positive Answer: B Diff: 1 Page Ref: 466 Skill: Applied/Comprehensive/Integrative 37) Total demand for a movie drops from 400 to 350 units when a theater operator increases the ticket price for a popular movie from $7 to $9. Price elasticity of demand (expressed as a positive number) equals ________. A) 0.125 B) 0.53 C) 0.67
D) 2.50 Answer: B Diff: 2 Page Ref: 466-467 Skill: Applied/Comprehensive/Integrative 38) When a stationery store increases its price for a popular computer notebook from $1,000 to $1,250, its quantity demanded decreases from 400 to 250 per month. Its price elasticity of demand (expressed as a positive number) equals ________. A) 1.11
B) 2.07 C) 2.30
D) 2.50 Answer: B Diff: 2 Page Ref: 466-467 Skill: Applied/Comprehensive/Integrative 39) A negatively-sloped demand curve means that ________. A) the price elasticity of demand is negative B) demand is elastic C) demand is inelastic D) demand is unitary Answer: A Diff: 2 Page Ref: 466 Skill: Applied/Comprehensive/Integrative 40) The difference between horizontal price fixing and vertical price fixing is based on ________. A) whether the channel members are at the same level B) the legality of the resulting prices C) the effect on final selling prices D) whether collusion is involved Answer: A Diff: 2 Page Ref: 468, 469 Skill: Applied/Comprehensive/Integrative 41) Many manufacturers feel that vertical price fixing should be legal since it protects ________. 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 Answer: D Diff: 2 Page Ref: 469-470 Skill: Applied/Comprehensive/Integrative 42) The Robinson-Patman Act was developed to ________. 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 Answer: C Diff: 2 Page Ref: 469 Skill: Applied/Comprehensive/Integrative 43) Loss leaders are viewed as being particularly attractive by many retailers since they ________. 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 Answer: A Diff: 2 Page Ref: 470 Skill: Applied/Comprehensive/Integrative 44) A key difference between a loss leader and leader pricing is based upon whether ________. A) the goods are sold above cost B) bait advertising is used as part of the retailer's strategy C) sufficient customer traffic is generated D) competing retailers are hurt by the action Answer: A Diff: 2 Page Ref: 470, 484 Skill: Applied/Comprehensive/Integrative 45) A key difference between loss leaders and bait-and-switch advertising is based upon whether ________. A) the strategy is legal B) competitors are hurt by the offer C) the retailer intends to sell the advertised good or service D) ample store traffic is created by the strategy Answer: C Diff: 2 Page Ref: 470, 479 Skill: Applied/Comprehensive/Integrative 46) The key difference between bait-and-switch advertising and "trading the customer up" to a more expensive substitute is that in "trading the customer up," the advertised low-price good ________. A) is sold below cost B) is available for sale at the advertised price C) is disparaged D) must be specially ordered Answer: B Diff: 2 Page Ref: 471 Skill: Applied/Comprehensive/Integrative 47) Selling against the brand and private labels are two strategies retailers use to ________. A) increase consumer price elasticity B) create nonprice competition C) generate price competition D) assert channel power Answer: D Diff: 2 Page Ref: 471 Skill: Applied/Comprehensive/Integrative 48) A retailer has the least control over retail price setting in ________. A) a price war B) a regulated pricing situation C) an administered pricing situation D) market pricing Answer: D Diff: 1 Page Ref: 471 Skill: Applied/Comprehensive/Integrative 49) Administered pricing utilizes ________. A) nonprice competition B) price guarantees C) quantity and seasonal discounts D) bargaining power Answer: A Diff: 2 Page Ref: 472 Skill: Applied/Comprehensive/Integrative 50) Administered pricing can be used in association with ________. A) market penetration B) price wars C) market skimming D) elastic demand Answer: C Diff: 2 Page Ref: 472, 473 Skill: Applied/Comprehensive/Integrative 51) A market penetration strategy should be used when a retailer ________. A) believes in the price-quality association B) seeks to maximize profits D) seeks to differentiate its offerings through superior customer service Answer: C Diff: 1 Page Ref: 473 Skill: Applied/Comprehensive/Integrative 52) A market penetration strategy should be used when consumer price elasticity of demand is ________. A) negative B) inelastic C) elastic D) unitary Answer: C Diff: 2 Page Ref: 473 Skill: Applied/Comprehensive/Integrative 53) A retailer has exclusive distribution for a new product in its market area, views the market as price inelastic, and desires an early-recovery-of-cash objective. What pricing strategy should it pursue? A) market pricing B) price competition C) market penetration D) market skimming Answer: D Diff: 2 Page Ref: 473 Skill: Applied/Comprehensive/Integrative 54) At which price does the retailer maximize total sales revenue?
7 11,000 8 9,500 9 9,000
10 8,000 A) $7.00 B) $8.00 C) $9.00 D) $10.00 Answer: C Diff: 2 Page Ref: 474 Skill: Applied/Comprehensive/Integrative 55) A 25 percent markup at cost equals what markup at retail? A) 10 percent B) 15 percent C) 20 percent D) 40 percent Answer: C Diff: 2 Page Ref: 476 Skill: Applied/Comprehensive/Integrative 56) A 60 percent markup at retail equals what markup at cost? A) 52 percent B) 60 percent C) 150 percent D) 200 percent Answer: C Diff: 2 Page Ref: 476 Skill: Applied/Comprehensive/Integrative 57) A close-out retailer can purchase a discontinued digital camera for $79 and wants to obtain a 40 percent markup at retail. What retail price should be charged? A) $82.60 B) $98.33 C) $119.00 D) $131.67 Answer: D Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 58) A golf specialty store desires a minimum 40 percent markup for all of its golf sets and accessories. The retailer feels that a popular golf set should retail at $895. What is the maximum price the retailer can pay for the set? A) $358.00 B) $398.00 C) $537.00 D) $577.00 Answer: C Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 59) A jewelry store has been offered a special price on estate jewelry. A typical 14-karat pin costs the jeweler $350 and can retail at $595. What markup at retail will the jeweler obtain? A) 20.0 percent B) 36.4 percent C) 41.2 percent D) 57.1 percent Answer: C Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 60) A retailer has planned operating expenses of 44 percent of planned sales and a planned profit of 6 percent of sales. What markup percentage at retail does the retailer require? A) 38 percent B) 44 percent C) 50 percent D) The answer cannot be determined based on the information provided. Answer: C Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 61) The major difference between an initial markup and a maintained markup is that the maintained markup reflects ________. 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 Answer: D Diff: 2 Page Ref: 478 Skill: Applied/Comprehensive/Integrative 62) The most intensive cost analysis on a product basis occurs with ________. A) price lining B) variable pricing C) direct product profitability D) a variable markup policy Answer: C Diff: 2 Page Ref: 479 Skill: Applied/Comprehensive/Integrative 63) Manufacturers seek to reduce extreme shifts in demand due to stocking up by wholesalers, retailers, and final consumers through ________. A) a one-price policy B) leader pricing C) everyday low pricing (EDLP) D) customary pricing Answer: C Diff: 2 Page Ref: 481 Skill: Applied/Comprehensive/Integrative 64) Some of the legal difficulties associated with the Robinson-Patman Act can be avoided through use of ________. A) a one-price policy B) variable markup pricing C) the price-quality association D) customary pricing Answer: A Diff: 2 Page Ref: 483 Skill: Applied/Comprehensive/Integrative 65) The demand curve may not be negatively sloped throughout its range in ________. A) variable pricing B) odd pricing C) flexible pricing D) a one-price policy Answer: B Diff: 2 Page Ref: 484 Skill: Applied/Comprehensive/Integrative 66) An item originally priced at $50.00 is reduced to $29.95. The off-retail markdown percentage is approximately ________. A) 20 percent B) 40 percent C) 60 percent D) 66 percent Answer: B Diff: 2 Page Ref: 486 Skill: Applied/Comprehensive/Integrative 67) An item originally priced at $75.00 is raised to $90.00 based upon unanticipated demand. The addition to retail percentage is ________. A) 16.7 percent B) 20 percent C) 23 percent D) 25 percent Answer: B Diff: 2 Page Ref: 486 Skill: Applied/Comprehensive/Integrative 68) 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? A) 115
B) 167 C) 250
D) The answer cannot be determined from the information provided. Answer: C Diff: 2 Page Ref: 486-487 Skill: Applied/Comprehensive/Integrative 69) A stationery retailer generally prices portable computers using a 30 percent markup. The retailer expects to sell 100 portable computers at the 30 percent markup. How many units would it have to sell at a 10 percent increase in price from the original price to maintain the same gross profit? A) 75
B) 80 C) 82
D) 125 Answer: A Diff: 2 Page Ref: 486-487 Skill: Applied/Comprehensive/Integrative 70) An early markdown policy can be assured through the use of a(n) ________. A) off-retail markdown percentage plan B) price-adjustment plan C) stock-shortage control plan D) automatic markdown plan Answer: D Diff: 1 Page Ref: 487 Skill: Applied/Comprehensive/Integrative 71) If total revenue increases when prices increase, the price elasticity of demand is inelastic. Answer: FALSE Diff: 2 Page Ref: 466 Skill: Terminology/Concept 72) Economic consumers are more price elastic than personalizing consumers. Answer: TRUE Diff: 1 Page Ref: 468 Skill: Terminology/Concept 73) Horizontal price fixing refers to the ability of manufacturers and wholesalers to set final retail selling prices. Answer: FALSE Diff: 1 Page Ref: 468 Skill: Terminology/Concept 74) The Robinson Patman Act strove to curb the bargaining power of large retail chains. Answer: TRUE Diff: 1 Page Ref: 469 Skill: Terminology/Concept 75) The Robinson-Patman Act allows price discrimination when the products sold to competing retailers are physically different. Answer: TRUE Diff: 2 Page Ref: 469 Skill: Terminology/Concept 76) With loss leaders, the retailer has no intention of selling the advertised item at the advertised price. Answer: FALSE Diff: 1 Page Ref: 470 Skill: Terminology/Concept 77) Unit pricing requires that retailers list the price of each item in a conspicuous location on the item. Answer: FALSE Diff: 1 Page Ref: 470 Skill: Terminology/Concept 78) High brand loyalty, an excellent location, and strong customer service allow a retailer to utilize market pricing. Answer: FALSE Diff: 2 Page Ref: 471-472 Skill: Terminology/Concept 79) A market skimming strategy is most appropriate when customers are highly insensitive to price and when the retailer seeks high profit per unit. Answer: TRUE Diff: 2 Page Ref: 473 Skill: Terminology/Concept 80) Psychological pricing is concerned with consumer perceptions of retail price. Answer: TRUE Diff: 2 Page Ref: 476 Skill: Terminology/Concept 81) The most widely used retail-pricing technique is markup pricing. Answer: TRUE Diff: 1 Page Ref: 476 Skill: Terminology/Concept 82) Maintained markup is based on the original retail value assigned to the merchandise. Answer: FALSE Diff: 1 Page Ref: 478 Skill: Terminology/Concept 83) In flexible pricing, a retailer allows buyers to negotiate. Answer: TRUE Diff: 1 Page Ref: 483 Skill: Terminology/Concept 84) Leader pricing seeks to increase store traffic through heavily promoted specials. Answer: TRUE Diff: 2 Page Ref: 484 Skill: Terminology/Concept 85) An early markdown policy enables a retailer to have every opportunity in the selling season to sell the good at the originally designated price. Answer: FALSE Diff: 1 Page Ref: 487 Skill: Terminology/Concept 86) According to traditional economic pricing theory, price elasticity tends to be a negative number. Answer: TRUE Diff: 2 Page Ref: 466 Skill: Applied/Comprehensive/Integrative 87) A retailer reduced the price of a disposable camera from $7 to $5; it expected annual demand to increase from 500 units to 900 units. The retailer assumed that the price elasticity of demand would be 2.71. Answer: FALSE Diff: 2 Page Ref: 466-467 Skill: Applied/Comprehensive/Integrative 88) The price elasticity of demand for a product can be elastic, inelastic, and unitary over different price levels. Answer: TRUE Diff: 2 Page Ref: 466-467 Skill: Applied/Comprehensive/Integrative 89) 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. Answer: TRUE Diff: 2 Page Ref: 468-469 Skill: Applied/Comprehensive/Integrative 90) Leader pricing accomplishes a similar objective as loss leaders, yet is legal. Answer: TRUE Diff: 2 Page Ref: 470, 484 Skill: Applied/Comprehensive/Integrative 91) The difference between loss leaders and bait-and-switch advertising is that with loss leaders, the retailer stocks the good in sufficient quantities to meet anticipated demand. Answer: TRUE Diff: 2 Page Ref: 470, 471 Skill: Applied/Comprehensive/Integrative 92) Pricing above the market as a retail strategy is most appropriate in administered pricing. Answer: TRUE Diff: 2 Page Ref: 472, 480 Skill: Applied/Comprehensive/Integrative 93) The range of acceptable prices to both retailers and final consumers is between the demand ceiling and the price floor. Answer: FALSE Diff: 2 Page Ref: 476 Skill: Applied/Comprehensive/Integrative 94) According to prestige pricing, the demand curve can be positively sloped at price levels that are considered too low by consumers. Answer: TRUE Diff: 2 Page Ref: 476 Skill: Applied/Comprehensive/Integrative 95) A retailer can buy a leather portfolio case for $50.00 and wants to obtain a 50 percent markup at retail. The retailer should charge a retail price of $125.00. Answer: FALSE Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 96) A 100 percent markup at retail is equivalent to a 45 percent markup at cost. Answer: FALSE Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 97) A retailer's planned operating expenses are 29 percent of its planned net sales. Its planned profit is 5 percent of sales and its planned retail reductions are 8 percent of sales. Its planned markup percent at retail is 42 percent of sales. Answer: FALSE Diff: 2 Page Ref: 477 Skill: Applied/Comprehensive/Integrative 98) Direct product profitability allows retailers to take into account differences in the costs of installation, delivery, customer service, and merchandise handling in setting markups for categories of merchandise. Answer: TRUE Diff: 2 Page Ref: 479 Skill: Applied/Comprehensive/Integrative 99) Profitability is determined on an item basis in direct product profitability (DPP). Answer: TRUE Diff: 2 Page Ref: 479 Skill: Applied/Comprehensive/Integrative 100) To stimulate additional sales, a men's clothing retailer is anticipating reducing its retail prices by 10 percent from its current markup of 50 percent as a means of blunting competition from a new category killer men's clothing chain that has opened in its trading area. It needs a 20 percent sales increase to maintain its former gross profit. Answer: FALSE Diff: 2 Page Ref: 486-487 Skill: Applied/Comprehensive/Integrative 101) How do the price-quality association, prestige pricing, customary pricing, and odd pricing impact the price elasticity of demand? Diff: 2 Page Ref: 466-467, 476, 481, 484 102) Outline the major manufacturer and wholesaler arguments for legalizing minimum pricing across the board. Diff: 2 Page Ref: 468-469 103) a. Define loss leaders, bait-and-switch advertising, trading up, and leader pricing. b. Explain the differences among each. Use an example. Diff: 1 Page Ref: 470, 471, 484
Diff: 2 Page Ref: 471 105) a. Differentiate between administered and market pricing. b. How can a retailer turn a market pricing environment into an administered pricing environment? Diff: 1 Page Ref: 472
Diff: 2 Page Ref: 476-481 107) What factors account for the popularity of markup pricing in retailing? Explain your answer. Diff: 1 Page Ref: 476 108) Explain how markup pricing can include a demand and a cost component. Diff: 2 Page Ref: 476-478 109) Convert each of the following markup percentages at retail to markup percentages at cost: 30, 40, 50, and 60. Diff: 1 Page Ref: 477 110) a. Differentiate between the initial markup and maintained markup concepts on a conceptual level. b. Show how the formula for computing initial and maintained markups differ. Diff: 1 Page Ref: 478
Diff: 1 Page Ref: 481, 483, 484, 485 112) Develop a checklist for use by a computer retailer for effective markdown control. Diff: 2 Page Ref: 487 Directory: wp-content -> uploads -> woocommerce uploads -> 2014 uploads -> Police Militarization uploads -> Stop Militarizing Law Enforcement Act of 2014 uploads -> 2017 afoCo Landmark Scholarship Program uploads -> Instructions for the Preparation of Camera-Ready Contributions to the Conference Proceedings uploads -> Medical Radiography Program uploads -> Ihbb asian Championships 2014 middle school bowl Round 4 First Quarter uploads -> Ihbb european Championships 2014 Bowl Round 4 First Quarter woocommerce uploads -> Ashford University Managerial Economics 2014 -> Week 2 Case Study: I’m a pc case Study Discussion Questions Download 1.4 Mb. Share with your friends:
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