Pricing Strategy Quiz

Nora's Boutique was working on their pricing strategy. They decided to end all of their prices in $0.97, a few cents less than the round number. So instead of selling a pair of pants at $15.00, they would sell them at $14.97. This is an example of

• Competitive Pricing.

• Vendor Pricing.

• Psychological Pricing.

• Mark Down.

Charlotte runs a retail business. __________ is the amount of money that comes into her business minus expenses.

• Forecasting

• Revenue

• Margin

• Reconciliation

Courtney, the buyer for a small produce store, sells 25 bags of oranges at $12 per bag. Her cost of goods sold per bag is $7. What is Courtney's gross profit?

• $293

• $300

• $175

• $125

Abigail and David are operating a taco truck. Which of the following would you categorize as the COGs?

• Cost of the meat, shells, and cheese.

• Cost of the permit to operate the food truck.

• Gas and maintenance costs.

• Your salary.

Ava and Noah are shopping for a new phone. They notice that the store has priced the phone at $999.99 instead of $1000. This is an example of which pricing strategy?

• Promotional Pricing

• Psychological Pricing

• Bundle Pricing

• Discount Pricing

During a business class, Michael asked, "The 'S' in MSRP stands for"

• Store

• Standard

• Suggested

• Solution

Jackson is opening and operating a small online retail shop. What should he take into consideration when setting a retail price?

• Customer's price preferences

• The amount of money you want to make on each item

• The price set by the competitors on the same or similar products

• The cost of products, website service fees, competitor's prices, and the money you want to make on each item

Macey owns a clothing shop in which her current assortment includes summer apparel. It's nearing end of summer so in order for her to make room for fall items, she decides to mark the items down in order to move them out of the store. What will happen to her gross profit if she does this?

• Gross profit goes up

• Gross profit goes down

• Gross profit remains the same

• Gross profit goes unchanged

Priya runs a small store. If her store’s revenue is $3,050 and its cost of goods sold (COGS) is $1110, what is Priya’s gross profit?

• $400

• $2500

• $4160

• $1940

A store pays for a school bag $12 and sells it for $18. Since school has already begun and sales have slowed down, they need to markdown its price. What is the lowest they can mark down the backpack if they want to still make $3 in profit?

• 66%

• 1.66%

• 16.7%

• 16%