funeral service merchandising final pt 4

the ftc funeral rule was Incorporated in:

1984

the most expensive casket should be priced at a figure easily divisible by

2

depending on the firm, the multiple for the fixed multiple markup could be anywhere from _ to _, or higher/lower in some situations

2, 4

the final digit in an items price will almost always be a:

5, 7, 9, or 0

as the ___ increases, the customer recieves more value for his money

CVI

wholesale ÷ retail price =

CVI

wholesale cost ÷ total of merch+service =

MVR

the price of the most expensive casket divided in half should be slightly ______ the firm's:

above, target sales objective

with the modified graduated recovery method, entry level units remain ________, but the CVI:

affordable, rises as one climbs the price ladder

the sum of a group of numbers, divided by the number of units

average (mean)

statistical terms key to interpreting sales data include:

average (mean), median, mode, range

the fixed multiple method can result in:

awkward retail prices

a standard point of reference to which all other offerings may be compared

benchmark

the most and least expensive caskets serve as a:

benchmark

with the fixed dollar amount method, purchasers of high end caskets recieve:

better value for their dollar

method of price quotation showing separately the price of service and casket

bi-unit pricing

with the increasing graduated recovery method, the final retail price:

can be awkward

one drawback of the fixed dollar amount method is that the final price:

can seem awkward

an increase in MVR indicates added:

consumer value

CVI stands for:

consumer value index

measures the value of each consumer dollar spent to purchase a specific product

consumer value index (CVI)

the percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise

consumer value index (CVI)

another way of describing a method of pricing so that actual price figures are familiar to the consumer

consumerized pricing

the decreasing graduated recovery method is sometimes called the:

declining price structure model

with the increasing graduated recovery method, each step up in price makes the CVI:

decrease

pricing method that applies a a markup that is inversely proportional to the wholesale cost of the casket

decreasing graduated recovery method

because the CVI stays the same for all products in the fixed multiple method, there is nothing to:

encourage the customer to purchase anything above the minimum offering

quartiles that are price based may not necessarily contain:

evenly distributed casket populations

when using the fixed dollar amount method, the firm must carefully examine its:

financial needs (overhead) and profit objectives to determine the amount of profit it wishes to generate

pricing strategy where firm examines financial needs to determine the amount of profit it wants, then adds that amount to the wholesale cost of the casket

fixed dollar amount method

a pricing method whereby the casket cost is multiplied by a constant factor

fixed multiple method

a method of price quotation in which the charges are broken down into several major component parts

functional pricing

itemization is a much more detailed form of:

functional pricing

slightly more detailed than the bi-unit pricing method is the:

functional pricing method

a pricing method where the markup varies

graduated recovery method

markup is also known as:

gross casket margin or margin

with the modified graduated recovery method, consumers are encouraged to purchase:

high-end caskets, but entry level remains affordable

in the increasing graduated recovery method, customers are discouraged from buying:

high-end merch and rewarded for spending the least

examination of a firm's sales ______ and sales ________ will enable recognition of which products have and have not sold well

history, frequency

concerned with the actual number of choices available at each price rung on the vertical merchandising ladder

horizontal merchandising

in the decreasing graduated recovery method, every step up in price causes the CVI to:

increase

with the fixed dollar amount markup, the CVI (value progression) ________ moving from entry level to high end

increases

method where entry level merch recieves low markup and high-end recieves higher markup

increasing graduated recovery method

the 3 varieties of the graduated recovery method are:

increasing, decreasing, and modified graduated recovery

the method of price quotation by which each unit of service and/or merchandise is priced separately

itemization

in the decreasing graduated recovery method, upper range caskets recieve markups that are comparatively ____ than entry level caskets

less

with the fixed dollar amount method, purchasers of low end caskets recieve:

little value for their dollar

in the decreasing graduated recovery method, customers are discouraged from buying:

low end caskets and rewarded for spending the most

the difference between merchandise cost and selling price

markup

a value that represents the midpoint in an ordered set of numbers

median

MVR stands for:

merchandise value ratio

examines the relationship between the wholesale cost of the merchandise and the total cost (service+merchandise) to the consumer

merchandise value ratio (MVR)

most consumers feel most comfortable spending their money in the:

middle range of prices

the value that occurs most frequently in a group of numbers

mode

the modified graduated recovery method is also known as the:

modified declining price model

method essentially the same as decreasing method, but the first entry level offering recieves a less aggressive markup (+possibly 2nd & 3rd)

modified graduated recovery method

a pricing method which groups together selected services and/or merchandise

package pricing

approach where no scientific multiples or target figures are used to determine a casket's retail price, firm considers operating costs and consumer

perceived value approach

the most expensive casket implicitly sets the buyer's________ _____ ___ ___, for this reason:

percieved middle price range, it should be priced at a figure easily divisible by 2

markup is occasionally referred to as ____, but it may or may not reflect a measure of ____ ______

profit, true profit

a division of the total into 4 segments, each one representing 1/4 of the total

quartile

categorize merchandise into manageable segments and are helpful in tracking sales history + establishing future goals

quartiles

found by subtracting the least value from the greatest value

range (spread)

the upper and lower limits of a series of numbers

range (spread)

the least expensive casket must possess _________ ______ and _____ in order to serve the customer who:

reasonable aesthetics, quality, cant afford any better

philosophy that dictates "you get what you pay for"

relative value

value progression is closely mirrored by the philosophy of:

relative value

the frequent examination of ____ is important to the financial well being of any funeral home

sales

facilities the optimization of a firm's product offerings, the value it offers to clients, and its profit generating abilities

sales analysis

the number of times sales in a given price bracket occur over a fixed period of time

sales frequency

casket margin is often used to cover deficiencies in the funeral home's:

service charge

with the fixed multiple method, as the consumer moves up the price ladder, the CVI (value progression):

stays the same

the fixed multiple method is also known as the:

straight line or times factor pricing method

the use of the fixed dollar amount markup ensures the firm will receive its:

target profit amount, regardless of the unit sold

the ftc funeral rule does not prohibit package pricing as long as:

the consumer is given a general price list and appropriate merchandise price lists

a variety of choices at a given price level encourage the customer to buy at that price level, therefore:

the greatest# of model choices exist at or slightly above the target sales objective

types of quartiles include:

unit and price quartiles

method of price quotation in which one price includes both service and casket

unit pricing

pricing method used by nearly every funeral home for much of the 20th century

unit pricing

methods of price quotation include:

unit pricing, bi-unit pricing, functional pricing, itemization, and package pricing

the inclusion of cents in the final price figure is_________, it _______ the customer and makes the price seem:

unnecessary, confuses, higher than it actually is

all product lines offered by a funeral home should clearly display:

value progression

concept that dictates "the more a customer spends, the more value he should receive"

value progression

concerned with providing consumers with a selection of prices, with steady and obvious value progression at each rung on the price ladder

vertical merchandising

pricing method where, regardless of caskets wholesale cost, a zero is added to the wholesale cost to determine retail price

zero pricing method