FSU HOPKINS RETAIL MANAGEMENT
EXAM 4 QUESTIONS & VALID PASSED
ANSWERS RATED 100% CORRECT
Pricing Options for Retailers - Correct Answer ✔✔ *Discount Orientation
*At-the-Market Orientation
*Upscale Orientation
Discount Orientation - Correct Answer ✔✔ - Low prices as a competitive advantage
- Consumers looking for the best deal → driven by PRICE. low eCommerce penetration
At-the-market orientation - Correct Answer ✔✔ competitive (average) prices with main
competitors, both have nearly the same prices for products
Upscale Orientation - Correct Answer ✔✔ higher(est) prices, want brant prestige or
image, may be higher quality.
Transparency Pricing - Correct Answer ✔✔ making customers aware of the cost
breakdown of a product, builds trust, social responsibility
Factors affecting Retail Price Strategy - Correct Answer ✔✔ - consumers
- government
- manufacturers, wholesalers & other suppliers
- current & potential competitors
price elasticity of demand - Correct Answer ✔✔ the sensitivity of customers to price
changes in terms of the quantities they will buy
elastic demand - Correct Answer ✔✔ Small price changes have big impact on sales
inelastic demand - Correct Answer ✔✔ large price changes have a small impact on
number of units bought (uncommon, except for medication)
Factors affecting elasticity - Correct Answer ✔✔ availability of substitutes
cost of switching
Degree of necessity
Portion of income
peak and off-peak demand
EXAM 4 QUESTIONS & VALID PASSED
ANSWERS RATED 100% CORRECT
Pricing Options for Retailers - Correct Answer ✔✔ *Discount Orientation
*At-the-Market Orientation
*Upscale Orientation
Discount Orientation - Correct Answer ✔✔ - Low prices as a competitive advantage
- Consumers looking for the best deal → driven by PRICE. low eCommerce penetration
At-the-market orientation - Correct Answer ✔✔ competitive (average) prices with main
competitors, both have nearly the same prices for products
Upscale Orientation - Correct Answer ✔✔ higher(est) prices, want brant prestige or
image, may be higher quality.
Transparency Pricing - Correct Answer ✔✔ making customers aware of the cost
breakdown of a product, builds trust, social responsibility
Factors affecting Retail Price Strategy - Correct Answer ✔✔ - consumers
- government
- manufacturers, wholesalers & other suppliers
- current & potential competitors
price elasticity of demand - Correct Answer ✔✔ the sensitivity of customers to price
changes in terms of the quantities they will buy
elastic demand - Correct Answer ✔✔ Small price changes have big impact on sales
inelastic demand - Correct Answer ✔✔ large price changes have a small impact on
number of units bought (uncommon, except for medication)
Factors affecting elasticity - Correct Answer ✔✔ availability of substitutes
cost of switching
Degree of necessity
Portion of income
peak and off-peak demand
