Question 1

A Black Friday advertisement for a heavily discounted Android tablet has some fine print: Only 3 per store.This is an example of __________.&#10;A) bait and switch&#10;B) leader pricing&#10;C) manufacturer's rebate&#10;D) a promotional allowance&#10;E) quantity discount

Accepted Answer

Even with the limited quantity,the most likely answer is leader or bait pricing (only when customers are deliberately shown more expensive alternatives is this bait and switch).

Question 2

The price of a television sold in Black Friday sale can use more than one pricing tactic to discount the price below the competition.

Accepted Answer

It is possible for a retailer to use multiple pricing tactics to discount the price of a television in a Black Friday sale. For example, they may use a loss leader pricing strategy where they heavily discount a popular television to attract customers to the store. They may also use price matching to ensure their price is lower than the competition, and use bundling or package deals to offer additional value to customers. By using multiple pricing tactics, a retailer can offer a competitive price and stand out in a crowded market.

Question 3

Offering a free telescopic lens boxed with a compatible digital camera is bundling both for the same low price.

Accepted Answer

Bundling refers to the practice of including two or more related products or services in a single package and offering them at a discounted price. In this case, the telescopic lens and digital camera are related products, and offering them together for the same low price constitutes bundling.

Question 4

All of the following contribute to profitability during Black Friday sales except __________.&#10;A) low fixed costs&#10;B) additional or more expensive purchases&#10;C) high volume of sales&#10;D) competitors don't undersell or offer alternatives&#10;E) inelastic demand

Accepted Answer

Demand would need to be elastic for sale pricing.

Question 5

Manufacturers are stakeholders in Black Friday sales,even though they were paid earlier in the year.

Accepted Answer

Because low Black Friday prices attract additional buyers to the market,the increased sales justify production expansion and having inventory on hand to restock sellers.

Question 6

Black Friday is a short-term fix for months of slow sales.

Accepted Answer

Black Friday actually begins several weeks of managed sales that are intended for long-term profit goals.

Question 7

Why is there so much hype about Black Friday,why make it seem like the price point and the merchandise won't ever happen again?&#10;A) It makes shoppers buy now rather than later from another store.&#10;B) The merchandise is what people want for gift giving.&#10;C) Demand can outstrip supply.&#10;D) People feel smarter after shopping early.&#10;E) all of the above

Accepted Answer

Door-buster sales,limited-time offers,coupons,shopper cash all force consumers to make purchasing decisions faster and in one place,making it difficult to comparison shop.

Question 8

Micro Center Mall has published its After-Black Friday Sale flyer.It has an ad for a Vaio laptop on special and below it,a one line ad for an upgraded model.This is an example of __________.&#10;A) a unique offering&#10;B) bait pricing&#10;C) escalator pricing&#10;D) cultivating selected demand&#10;E) none of the above

Accepted Answer

Here the marketing manager has targeted customers who are both looking for a bargain and willing to pay more for additional features.

Question 9

Black Friday discounting can best be defined by which of the following?&#10;A) seasonal discount&#10;B) quantity discount&#10;C) functional discount&#10;D) promotional discount&#10;E) none of the above

Accepted Answer

Black Friday prices are typically value-based and/or loss-leader to encourage shoppers to spend on additional merchandise.

Question 10

Black Friday offers retailers the opportunity to aggressively use _________ as a pricing strategy.&#10;A) price skimming&#10;B) status quo pricing&#10;C) market plus&#10;D) penetration pricing&#10;E) bargain anchoring

Accepted Answer

Penetration pricing means charging a relatively low price for a product as a way to reach the mass market.

Deck 40: Black Friday Sales: Deal…or No Deal?