Assessment Tool

Written Response Tasks

General Instruction.
 All answers must be written in short size bond paper. Follow the format given below.
Submit your output on Friday, May 21, 2021.

Name: Jon Bryan N. Montejo Course code & descriptive title: MMPC 7 Retail Management
Course & Year: BSBA-MM, 3rd year Module No. & Inclusive week/s:____________________
Date Submitted: May 21, 2021 Grading Period: ______ Exer No. _____

Enrichment Exercise No. 1

1. What factors should a retailer consider when establishing pricing objectives and policies?
 First and foremost you need to be financially informed. Before you set your pricing, work
out the costs involved with running your business, next, Know what your customers
want from your products and services. Then once you understand your customer, you
need to look at your positioning. Next is give yourself permission to do a little competitor
snooping and last is profit.

2. What are the various pricing strategies available to the retailer?

 Various pricing strategies are adopted by the traditional bricks – and – mortar retailers
in an effort to achieve certain pricing objectives. The pricing strategies should be in
accord with the other components of the store’s retail mix: location, promotion, display,
service level and merchandise assortment. Customary Pricing. Customary pricing
occurs when a retailer sets prices for goods and services and seeks to maintain those
prices over an extended period of time. Variable Pricing. Variable pricing is used when
differences in demand and cost force the retailer to change prices in a fairly predictable
manner. Flexible Pricing. Flexible pricing means offering the same products and
quantities to different customers at different prices. One-Price Policy. Under one-price
policy, the retailer charges all customers the same price for an item. Price Lining. Price
lining is a pricing policy that is established to help customers make merchandise
comparisons and involves establishing a specified number of price points for each
merchandise classification

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Enrichment Exercise No. 2

Define the following term/s in your own context:

1. Yield Management- is the process of making frequent adjustments in the price of a product in
response to certain market factors, such as demand or competition.

2. Pricing- is the process whereby a business sets the price at which it will sell its products and
services.

3. Below-market pricing policy-is a strategy used by generic companies and retailers with
private brands in an effort to capture the sales of price-sensitive customers.

4. Price Zone- is the process of establishing prices for products and services depending on
where people buy them.

5. Profit maximization-is the short run or long run process by which a firm may determine the
price, input and output levels that lead to the highest profit.

Instructor’s Information

HAZEL B. PAHILANGA, MBA

0956.713.5622

pahilangahazelb@google.com