2024 – 1 The sensitivity of consumers to price changes is measured by the 2 A

1) The sensitivity of consumers to price changes is measured by the ________.

2) A relatively small percentage change in the price of a computer results in large percentage changes in the number of units purchased for a retailer. The price elasticity of demand for computers can be described as ________.

3) When the price elasticity of demand is high and prices go up, total ________.

4) When the price elasticity of demand is unitary and prices go down, total ________.

5) Price elasticity of demand is negative since ________.

6) Horizontal price fixing involves an agreement ________.

7) In vertical price fixing, ________.

8) The intent of vertical price-fixing legislation was to protect ________.

9) Manufacturers and wholesalers can legally control retail prices by ________.

10) Price-discrimination legislation is designed to limit the ability of ________.

11) Price discrimination is legal under the Robinson-Patman Act when ________.

12) In predatory pricing, large retailers attempt to destroy smaller retailers by ________.

13) Retailers typically use loss leaders to ________.

14) Unit pricing laws are necessary because of ________.

15) Item price removal enables supermarkets to ________.

16) A retailer typically has no intention of selling a promoted good or service in ________.

17) Which strategy does not enable a retailer to control retail prices?

18) In selling against the brand, ________.

19) In price guarantees, a manufacturer protects a retailer by ________.

20) Individual retailers have no control over the setting of retail prices in ________.

21) A retailer able to develop a strongly differentiated retail mix can utilize ________.

22) An aggressive low-price strategy designed to sell a high volume of goods is ________.

23) Market penetration is an appropriate strategy when ________.

24) The price floor represents the ________.

25) Which of the following suggests that too low a price may hinder demand?

26) The most widely practiced retail pricing technique is ________.

27) Markups in retailing are typically computed on the basis of ________.

28) The difference between initial markups and maintained markups is due to ________.

29) Direct product profitability (DPP) is an example of ________.

30) Which pricing strategy seeks to stabilize demand throughout the year?

31) A retailer that seeks to alter prices to reflect fluctuations in costs or consumer demand should practice ________.

32) The opposite of setting prices by negotiation or bargaining is ________.

33) In which pricing technique does a retailer advertise and sell key items in the product assortment at less than the usual profit margin?

34) A retailer sells men’s suits for $179, $229, $309, and $359. This illustrates ________.

35) A major advantage of an early markdown policy is that ________.

36) Price elasticity is ________ when the urgency for a purchase is low and the number of acceptable substitutes is high.

37) Total demand for a movie drops from 400 to 350 units when a theater operator increases the ticket price for a popular movie from $7 to $9. Price elasticity of demand (expressed as a positive number) equals ________.

38) When a stationery store increases its price for a popular computer notebook from $1,000 to $1,250, its quantity demanded decreases from 400 to 250 per month. Its price elasticity of demand (expressed as a positive number) equals ________.

39) A negatively-sloped demand curve means that ________.

40) The difference between horizontal price fixing and vertical price fixing is based on ________.

41) Many manufacturers feel that vertical price fixing should be legal since it protects ________.

42) The Robinson-Patman Act was developed to ________.

43) Loss leaders are viewed as being particularly attractive by many retailers since they ________.

44) A key difference between a loss leader and leader pricing is based upon whether ________.

45) A key difference between loss leaders and bait-and-switch advertising is based upon whether ________.

46) The key difference between bait-and-switch advertising and “trading the customer up” to a more expensive substitute is that in “trading the customer up,” the advertised low-price good ________.

47) Selling against the brand and private labels are two strategies retailers use to ________.

48) A retailer has the least control over retail price setting in ________.

49) Administered pricing utilizes ________.

50) Administered pricing can be used in association with ________.

 

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