This is a commonly used measure of price sensitivity.
What is price elasticity?
100
This is when a retailer charges different prices for identical products and/or services sold to different customers.
What is price discrimination?
100
This arises when a dominant retailer sets prices below its costs to drive its competitive retailers out of business.
What is predatory pricing?
100
This involves agreements between retailers that are in direct competition with each other to set the same prices.
What is horizontal price fixing?
100
This is an unlawful, deceptive practice that lures customers into a store by advertising a product at a lower-than-normal price and then, induces them to purchase a higher price model.
What is bait-and-switch?
200
This is the difference between retail price and the cost of an item.
What is markups?
200
This is the markup as a percentage of the retail price.
What is markup percentage?
200
This is a factor that reduce the actual selling price from the initial sales price.
What is reductions?
200
This is the retail selling price initially set for the merchandise, minus the cost of the merchandise.
What is the initial markup?
200
This is the actual sales realized for the merchandise, minus the costs.
What is maintained markup?
300
This is a software program that uses a set of algorithms that analyze past and current merchandise sales.
What is merchandizing optimization software?
300
This is how you decide how much merchandise needs to be sold to achieve a break-even profit.
What is break-even analysis?
300
Occurs when there is slow selling merchandise.
What is a clearance sale?
300
These costs do not change with the quantity of product produced or sold.
What is fixed costs?
300
The retailer's expenses that vary directly with the quantity of product produced and sold.
What is variable costs?
400
Out of clothing wine, jewelry, and gasoline what is the most inelastic.
What is gasoline?
400
These are price reductions or discounts from the initial retail price.
What is markdowns?
400
This is using markdowns to promote merchandise and increase sales.
What is promotional markdowns.
400
This is charging each individual customer a different price based on their willingness to pay.
What is first-degree price discrimination?
400
This is step number one in liquidating markdown merchandise.
What is selling the merchandise to another retailer?
500
They help share the financial burden of taking markdowns
What is vendors?
500
This a 50% markup used by apparel retailers.
What is keystone method?
500
This is the ratio of what customers receive to what they have to pay for it.