Practice Test Geeks(CRA) Certified Retail Analyst Practice Test
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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. Which pricing strategy sets prices consistently low without frequent promotional discounts, aiming to build customer trust through price stability?

    Answer: Everyday Low Price (EDLP)

    Everyday Low Price (EDLP) maintains consistently low prices to reduce consumer uncertainty and minimize promotional spending.

  2. Price elasticity of demand measures which of the following?

    Answer: The responsiveness of quantity demanded to a change in price

    Price elasticity of demand quantifies how much unit sales change in response to a percentage change in price.

  3. Keystone pricing in retail refers to which of the following methods?

    Answer: Marking up the wholesale cost by 100% to set retail price

    Keystone pricing doubles the wholesale cost (100% markup), resulting in a 50% gross margin, which is a common retail baseline.

  4. A retailer sells a popular brand of coffee at below cost to attract shoppers into the store, expecting them to buy other full-margin items. This is an example of:

    Answer: Loss leader pricing

    Loss leader pricing intentionally prices certain items below cost to drive store traffic and increase overall basket size.

  5. When a retailer sets prices based primarily on what competitors are charging for the same or similar products, this strategy is called:

    Answer: Competitive pricing

    Competitive pricing uses competitor price points as the primary reference to position prices in the market.

  6. A retail analyst is reviewing planned markdowns for an apparel category. Which primary goal does a markdown optimization model pursue?

    Answer: Clearing excess inventory while maximizing total revenue over the selling season

    Markdown optimization balances sell-through speed against realized revenue, clearing inventory without unnecessarily sacrificing margin.

  7. Price bundling is a strategy where a retailer:

    Answer: Offers two or more products together at a combined price lower than buying each separately

    Price bundling groups products together at a combined discount to increase average transaction value and move slower-selling items.