DECA Retail Merchandising Practice Exam

Which of the following is a factor that contributes to charging higher prices?

1. Minimal variety of products offered

2. Greater customer service and additional offerings

3. Limited store hours

4. Lower product quality

The correct answer is: Greater customer service and additional offerings

Charging higher prices can often be attributed to greater customer service and additional offerings because these factors enhance the overall shopping experience and add perceived value for the customer. When a retailer provides exceptional customer service, such as personalized assistance or knowledgeable staff, it creates a sense of trust and satisfaction. Additionally, offering extra services or features—like extended warranties, loyalty programs, or exclusive product selections—makes the shopping experience more appealing. Customers are generally willing to pay more when they feel they are receiving a higher level of service and value in return. Factors such as minimal variety of products or limited store hours can typically lead to lesser customer engagement and satisfaction, which might not justify higher prices. Lower product quality often correlates with lower prices, as customers expect to pay less for inferior goods. These considerations clarify why greater customer service and additional offerings can give retailers the justification to charge higher prices.