Business of Retail ch. 4

 _____________ is the amount of money a retailer makes before taking expenses out or the difference between revenue and COGS.

• gross margin

• gross profit

• revenue

• net profit

What does MSRP stand for?

• Manufacture Selling Retail Price

• 
  Manufacture Suggested Retail Price

• 
  Manufacture Suggested Real Price

• Manufacture Store Retail Price

A household cleaner company lowers prices to appeal to shoppers who are watching their budgets.

What type of pricing strategy is this?

• psychological pricing

• economy pricing

• discount pricing

• mark up

A discount store offers "3 T-shirts for $25" even though they're $10 each when sold separately.

What type of pricing strategy is this?

• discount pricing

• multiple pricing

• economy pricing

• mark up

The Goodwill Thrift Store was working on their pricing strategy. They decided to end all of their prices in .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

• mark down

• vendor pricing

• psychological pricing

_____________ is the amount of money that comes into a retail business minus expenses.

• margin

• forecasting

• revenue

• reconciliation

A vendor at the farmer's market must sell apples at $3 per pound because the grower sets the price.

What type of pricing strategy is this?

• multiple pricing

• bundle pricing

• discount pricing

• vendor pricing

A restaurant runs a "Buy One Meal, Get One Half Off" deal for a limited time.

What type of pricing strategy is this?

• bundle pricing

• discount pricing

• vendor pricing

• economy pricing

A brand new video game console is released at a very high price to attract early buyers who are willing to pay more.

What type of pricing strategy is this?

• vendor pricing

• discount pricing

• price skimming

• keystone pricing

A boutique buys purses for $30 each and sells them for $60 - exactly double the cost. 

What type of pricing strategy is this?

• bundle pricing

• economy pricing

• keystone pricing

• mark up