Business of Retail - Post Test Review - Practice B

Which of the following would be considered a cost of goods?

• Electricity bill
• Employee wages
• Wholesale purchase price
• Insurance premium

Answer explanation

Explanation for the answer (optional)

What pricing strategy uses a price like $9.99 instead of $10.00 to make it more appealing?

• Vendor pricing
• Psychological pricing
• Bundle pricing
• Skimming

Which pricing method involves doubling the wholesale price of a product?

• Keystone pricing
• Competitive pricing
• Discount pricing
• Economy pricing

James runs a boutique and buys scarves at $12 each. If he uses a 50% markup strategy, what will the selling price be?

• $16
• $18
• $20
• $24

Jalen owns a store that buys backpacks at $20 each. He decides to use keystone pricing. What price will he likely list them at?

• $25
• $30
• $35
• $40

Nolan is helping his manager mark down snow boots in March. Which reason best explains this markdown?

• New competitors opened
• They are out of season
• The boots are too expensive
• The supplier raised prices

If a retailer wants to attract budget-conscious customers and keep all expenses low, which strategy should they use?

• Price skimming
• Bundle pricing
• Psychological pricing
• Economy pricing

Why might a retailer accept a lower profit on one item in their store?

• To pay less in taxes
• To meet legal price limits
• To sell more of another item
• To reduce vendor costs

Kevin notices his video game store has too many copies of an old game. He suggests bundling it with a new controller. What strategy is he using?

• Multiple pricing
• Bundle pricing
• Psychological pricing
• Vendor pricing

Savannah is starting a skincare brand and wants to target early adopters. What pricing method should she choose?

• Competitive pricing
• Price skimming
• Keystone pricing
• Economy pricing