CRA Retail Pricing Strategy & Optimization 2

Question 1

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

Accepted Answer

Demand fluctuations, competitor pricing, and inventory levels

Answer

Only vendor invoice cost changes

Answer

Predetermined seasonal calendars set annually

Answer

Average shopper income in the trade area

Question 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:

Accepted Answer

Substitute goods

Answer

Complementary goods

Answer

Inferior goods

Answer

Inelastic goods

Question 3

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

Accepted Answer

Regularly cycles between higher regular prices and temporary promotional price reductions

Answer

Never uses coupons or digital promotions

Answer

Focuses exclusively on premium product assortments

Answer

Avoids price matching with competitors

Question 4

Zone pricing in retail refers to:

Accepted Answer

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

Answer

Setting the same price for all products within a single category

Answer

Applying bulk pricing discounts based on order quantity

Answer

Pricing items differently based on their placement in the store aisle

Question 5

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

Accepted Answer

Charm pricing

Answer

Price anchoring

Answer

Prestige pricing

Answer

Decoy pricing

Question 6

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

Accepted Answer

Assessing price elasticity and competitive positioning before adjusting the retail price

Answer

Immediately raising retail prices by the full cost increase amount

Answer

Reducing order quantities to offset the cost increase without changing price

Answer

Discontinuing the item if margins drop below 30%

Question 7

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

Accepted Answer

Gross Margin Return on Investment (GMROI)

Answer

Average Unit Retail (AUR)

Answer

Sell-Through Rate (STR)

Answer

Inventory Days of Supply (DOS)