The Decision by David Jones to Use Even Prices, Such

question 7

Multiple Choice

The decision by David Jones to use even prices, such as $60 for a Ralph Lauren Polo shirt, is an application of odd-even pricing, in which even prices often are used to:

• A)give a product an upscale or exclusive image.
• B)show customers that products are priced based on tradition.
• C)coordinate efforts with a promotional campaign.
• D)indicate that prices have been cut to the last penny.
• E)facilitate comparison to competitors' prices.

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Definitions:

Supply and Demand

A fundamental economic model that describes the relationship between the availability of a product or service and the desire for it among consumers.

Markup Percentage

The ratio of profit added to the cost price of goods to determine the selling price, expressed as a percentage of the cost.

Markup Percentage

Markup Percentage is the difference between the cost of a product or service and its selling price, expressed as a percentage of the cost, used to determine the selling price.

Wholesale Price

The cost of goods sold in bulk to retailers or distributors, typically lower than retail prices.