Retail Management Final Exam
Questions with Verified Solutions6
Visual communication in retailing have become especially important because: - ANSWERS -
Retailers have found it necessary to cut costs by reducing their sales staffs.
Which of the following is NOT part of a retailer's visual communications program? - ANSWERS -
background music
____ signage is placed closer to the merchandise and is intended to give details about specific
merchandise items. - ANSWERS -Point-of-sale
You have decided that one of the goals of your retail expansion is to establish a loyal customer
have before the competition is able to do so. Therefore, when you enter a new trading area
with a new product or service, you should use a ____ price strategy. - ANSWERS -penetration
The rules of action or guidelines that ensure uniformity of pricing decision with a retail
operation are known as the retailer's pricing: - ANSWERS -policies
A(n)___ pricing policy that regularly discounts merchandise from the established market price in
order to build store traffic, generate high, sales and enhance gross margin dollars per square
foot of selling space. - ANSWERS -below-market
A ____ brand can benefit the retailer because the cost is lower and allows for a higher markup
percentage, but can still be priced lower than a national brand. - ANSWERS -private label
A ____ is least apt to yse above market pricing policy. - ANSWERS -warehouse club
, What type of pricing policy increases both the efficiency and fairness in handling customer
transactions especially where the selling activity is delegated to salespersons who have varying
degrees of loyalty to the retailer? - ANSWERS -One-price
Your local bike shop offers a wide variety of bicycles at the following price levels : $99.99 ,
$199.99 , $299.99. The bike shop is using ____ pricing strategy. - ANSWERS -Price lining
A salesperson persuades a customers to purchase a higher-priced item, the salespersons has
____ the customer ? - ANSWERS -traded up
Pricing a product at $49.98 instead of $50.00 is called: - ANSWERS -odd pricing
In ____ pricing, a high-demand item is priced low and advertised heavily in an effort to attract
consumers into a store. - ANSWERS -leader
For leaser pricing to be effective, which of the following guidelines should be followed? -
ANSWERS -The leader item must be an item frequently purchased by the consumer
A ____ pricing strategy involves the use of high everyday prices and low leader "specials" on
featured item in a retailer's weekly ads. - ANSWERS -high-low
Markup is the selling price of an item less its - ANSWERS -cost
Reductions in the price of an item that are taken in order sales are termed: - ANSWERS -
markdowns
Retailers use _____, which consist of four components ( advertising, sales promotion, publicity,
and personal selling) as a means to bring traffic into their stores. - ANSWERS -promotion
Questions with Verified Solutions6
Visual communication in retailing have become especially important because: - ANSWERS -
Retailers have found it necessary to cut costs by reducing their sales staffs.
Which of the following is NOT part of a retailer's visual communications program? - ANSWERS -
background music
____ signage is placed closer to the merchandise and is intended to give details about specific
merchandise items. - ANSWERS -Point-of-sale
You have decided that one of the goals of your retail expansion is to establish a loyal customer
have before the competition is able to do so. Therefore, when you enter a new trading area
with a new product or service, you should use a ____ price strategy. - ANSWERS -penetration
The rules of action or guidelines that ensure uniformity of pricing decision with a retail
operation are known as the retailer's pricing: - ANSWERS -policies
A(n)___ pricing policy that regularly discounts merchandise from the established market price in
order to build store traffic, generate high, sales and enhance gross margin dollars per square
foot of selling space. - ANSWERS -below-market
A ____ brand can benefit the retailer because the cost is lower and allows for a higher markup
percentage, but can still be priced lower than a national brand. - ANSWERS -private label
A ____ is least apt to yse above market pricing policy. - ANSWERS -warehouse club
, What type of pricing policy increases both the efficiency and fairness in handling customer
transactions especially where the selling activity is delegated to salespersons who have varying
degrees of loyalty to the retailer? - ANSWERS -One-price
Your local bike shop offers a wide variety of bicycles at the following price levels : $99.99 ,
$199.99 , $299.99. The bike shop is using ____ pricing strategy. - ANSWERS -Price lining
A salesperson persuades a customers to purchase a higher-priced item, the salespersons has
____ the customer ? - ANSWERS -traded up
Pricing a product at $49.98 instead of $50.00 is called: - ANSWERS -odd pricing
In ____ pricing, a high-demand item is priced low and advertised heavily in an effort to attract
consumers into a store. - ANSWERS -leader
For leaser pricing to be effective, which of the following guidelines should be followed? -
ANSWERS -The leader item must be an item frequently purchased by the consumer
A ____ pricing strategy involves the use of high everyday prices and low leader "specials" on
featured item in a retailer's weekly ads. - ANSWERS -high-low
Markup is the selling price of an item less its - ANSWERS -cost
Reductions in the price of an item that are taken in order sales are termed: - ANSWERS -
markdowns
Retailers use _____, which consist of four components ( advertising, sales promotion, publicity,
and personal selling) as a means to bring traffic into their stores. - ANSWERS -promotion
