Practice Test Geeks(CRA) Certified Retail Analyst Practice Test
← All CRA Flashcard Decks

Retail Pricing Strategy & Optimization Flashcards

7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Retail Pricing Strategy & Optimization flashcards as text

  1. Dynamic pricing allows retailers to adjust prices in real time based on which of the following factors?

    Answer: Demand fluctuations, competitor pricing, and inventory levels

    Dynamic pricing algorithms respond to real-time signals — demand, competition, and stock levels — to maximize revenue per unit.

  2. Cross-price elasticity of demand measures how the demand for Product A changes when the price of Product B changes. A positive cross-price elasticity indicates the two products are:

    Answer: Substitute goods

    Positive cross-price elasticity means when Product B's price rises, demand for Product A increases — they can replace each other, making them substitutes.

  3. A 'high-low' pricing strategy differs from EDLP primarily in that it:

    Answer: Regularly cycles between higher regular prices and temporary promotional price reductions

    High-low pricing alternates between elevated everyday prices and frequent promotional reductions to create urgency and excitement.

  4. Zone pricing in retail refers to:

    Answer: Charging different prices for the same product in different geographic areas or store clusters

    Zone pricing allows retailers to vary prices by store group or geographic cluster to reflect local competitive conditions and demand.

  5. A retail price ending in $0.99 instead of $1.00 is an example of which psychological pricing tactic?

    Answer: Charm pricing

    Charm pricing uses prices just below a round number (e.g., $9.99 vs. $10.00) to make items appear significantly cheaper to consumers.

  6. When analyzing the impact of a vendor cost increase on retail pricing decisions, a CRA analyst should consider which of the following first?

    Answer: Assessing price elasticity and competitive positioning before adjusting the retail price

    Before passing cost increases to consumers, analysts must evaluate how elastic demand is and whether competitive context allows for a price increase.

  7. Which metric directly reflects the profitability efficiency of retail inventory and is commonly used to evaluate whether pricing and turnover are aligned?

    Answer: Gross Margin Return on Investment (GMROI)

    GMROI combines gross margin percentage with inventory turnover, showing how many dollars of gross profit are generated per dollar of inventory investment.