CMA Flashcards by Brandon Hurley

which of the following measures in panel data affect sales volume
for a category?
# of buyers and $/purchase
HH penetration and volume per buyer
HH penetration and buying rate
All of these answers are correct

all of these answers are correct

How well did you know this?

Not at all

Perfectly

True or False: a store’s image has very little to do with product
assortment decision.

FALSE

How well did you know this?

Not at all

Perfectly

True or False: consumer demographic profiles will remain consistent
within a given geography over time but will vary by region

FALSE

How well did you know this?

Not at all

Perfectly

which of the following statements best describes the term “lift”?
the height that products should be placed on the shelves
change in product assortment after an efficient assortment analysis
a measure used to indicate an increase in product sales volume
due to some type of tactical activity
frequency during which a product should be placed on promotion

a measure used to indicate an increase in product sales volume
due to some type of tactical activity

How well did you know this?

Not at all

Perfectly

what are the most common characteristics of the destination role
in grocery format?
large dollar sales, high household penetration, low purchase frequency
large dollar sales, high household penetration, high purchase
frequency
large dollar sales, low household penetration, high purchase frequency
large dollar sales, high household penetration, average purchase
frequency

large dollar sales, high household penetration, high purchase
frequency

How well did you know this?

Not at all

Perfectly

at what levels is syndicated scanner data available?
segment level
SKU level
subcategory level
brand level
category level
all of these answers are correct

all of these answers are correct (data)

How well did you know this?

Not at all

Perfectly

why do some retailers choose to use a “blended margin” strategy?

to calculate total category margin through average sub-category
margins
to balance lower margins required on more price-sensitive product
with higher margin products to achieve category margin objective
to measure department margin because syndicated data vendors
only provide category-level margin data
to obtain a balanced market level margin by integrating syndicated
margin data with internal margin data

to balance lower margins required on more price-sensitive product
with higher margin products to achieve category margin objective

How well did you know this?

Not at all

Perfectly

incremental volume is affected by which of the following?
regular pricing, temporary price reductions (TPR), baseline prices
displays, shelving, in-store merchandising
displays, temporary price reductions (TPR), promoted pricing
shelving, regular pricing, new products/assortment

displays, temporary price reductions (TPR), promoted pricing

How well did you know this?

Not at all

Perfectly

which of the following measures is not available through panel
data?
penetration rate
purchase size
sales volume
store cluster size
Buying rate
purchase frequency

store cluster size

How well did you know this?

Not at all

Perfectly

True or False: The average promoted price can be higher than the
average non-promoted price at the same retailer

True

How well did you know this?

Not at all

Perfectly

what is SKU rationalization?
the process of selecting new items to add to the product assortment
to increase market coverage to 100%
the process of identifying niche items which cater to under performing key shopper segment
the process of identifying poor performance items that should be
deleted from the product assortment to improve category sales
none of these answers are correct

the process of identifying poor performance items that should be
deleted from the product assortment to improve category sales

How well did you know this?

Not at all

Perfectly

why is channel blurring occurring in the retail industry?
retailers are looking for new ways to increase consumer spending
by offering new categories and services
there is growth of new store formats and offerings in the retail
industry
retailers are carrying new items beyond the typical assortment
within a channel
all of these answers are correct

all of these answers are correct (channel)

How well did you know this?

Not at all

Perfectly

which of the following best describe how to correctly read a pareto
chart?
the product’s ranking in cumulative sales in plotted at the top as
curved line SKU’s are listed in descending order (left to right) based on their individual contribution to sales
SKU’s are listed in ascending order (left to right) based on their
individual contribution to a retailer’s sales
divide the cumulative curve (top of chart) by the bar value (below)
to calculate the item’s incrementality potential

SKU’s are listed in descending order (left to right) based on their
individual contribution to sales

How well did you know this?

Not at all

Perfectly

what is the most common issue in retail point of sale data that
requires you to “cleanse” the data before analyzing it?
the data may not match syndicated data sources unit it’s cleansed
market level details will be inaccurate in the retail POS data
product UPC codes (item codes), descriptions and sizes may be
inaccurate or incorrectly assigned to a category
formatting of the data will be incorrect unit it is cleansed

product UPC codes (item codes), descriptions and sizes may be
inaccurate or incorrectly assigned to a category

How well did you know this?

Not at all

Perfectly

which of the following data sources can be used to evaluate pricing strategy at an item level?
weekly dollar sales from POS or syndicated POS data
competitive pricing data
all of these sources
weekly regular/TPR prices from POS or syndicated POS data

all of these (sources)

How well did you know this?

Not at all

Perfectly

Audit data and scanner data are combined to create syndicated
scanner data. which of the following best describes each data
source?
audit data ensures compliance in-store; scanner data is retailer
point-of-sale data as reported by a Shopper household panel
audit data includes promotional in-store and circular activity gathered by field staff, scanner data is point-of-sale data gathered by
retailers
audit data includes promotional in-store and circular activity father
by field staff; scanner data is retailer Shopper loyalty card data
audit data ensures compliance in-store; scanner data is Retailer
Shopper loyalty card data

audit data includes promotional in-store and circular activity gathered by field staff; scanner data is point-of-sale data gathered by
retailers

How well did you know this?

Not at all

Perfectly

which of the following is NOT an example of assortment strategy?
all of these are correct
market coverage objective
first to market
private label strategy
broad assortment

all of these are correct (assortment)

How well did you know this?

Not at all

Perfectly

syndicated scanner data is comprised of 2 types of data including:
audit data and scanner data
scanner data and demographic data scanner data and processing data
audit data and processing data

audit data and scanner data

How well did you know this?

Not at all

Perfectly

when looking at channel dynamics which of these statements best
describes the grocery channel?
grocery stores typically have higher operating expenses than
other channels, resulting in lower margin and/or higher prices than
other channels
grocery stores can’t be profitable anymore, as their shoppers are
converting to other channels due to lower prices
grocery stores are not competing with other channels to enhance
their product line
grocery store’s revenues are generally higher per quarter than the
club store channel

grocery stores typically have higher operating expenses than other
channels, resulting in lower margin and/or higher prices than
other channels

How well did you know this?

Not at all

Perfectly

what is the biggest reason to cleanse retailer point-of-sale data
before analyzing it?
the data is sent from a syndicated data service and must be
converted to point-of-sale data
the data should be checked for discrepancies and errors before
starting analysis
the data must be converted to a text file before analyzing
the data may have a virus

the data should be checked for discrepancies and errors before
starting analysis

How well did you know this?

Not at all

Perfectly

why might a retailer choose to use point-of-sale data instead of
syndicated data to analyze business results?
retailer prefers to analyze their own data
retailer wants to get a store-level analysis
retailer wants to compare product margins
all of these are correct

all of these are correct (POS)

How well did you know this?

Not at all

Perfectly

how many steps are in the original category management process
published by the ECR sub-committee in the united states?
3
6
8
4
9

How well did you know this?

Not at all

Perfectly

True or False: when planning future promotions, you should look
historically into similar promotions from the past and also vs year
ago results

TRUE

How well did you know this?

Not at all

Perfectly

True or False: retail channels like grocery and mass are not
affected in difficult economic times because consumers still buy
the same products

FALSE

How well did you know this?

Not at all

Perfectly

when conducting an in-store test, how long should the testing period typically last? always 52 weeks at least 13 weeks, but no more than 26 weeks no more than 13 weeks at least 4 weeks, but not more than 12 weeks

at least 13 weeks, but no more than 26 weeks

True or False: the abbreviation "GMROI" is an important term in category management

true (GMROI

which of the following best describe the term "leakage" in panel data? loss of volume in a category to a private label none of these answers are correct loss of volume to other channels or retailers loss of share by competitive manufacturers in a category

loss of volume to other channels or retailers

which of the following best describes a shopper's primary concerns driving purchase decision? quality, value, and convenience quality, flavors and social media ads time of day, social media recommendations and magazine ads value, product ratings and time of day

quality, value, and convenience

True or False: improved technology is the major reason that category management has been successful

false (tech)

which of the following gives the best example of outcomes from catman that can positively impact retailer performance? effective space management, improved shopper understanding, improved pricing and promotional plans effective space management, lower trade spend, higher brand exclusivity lower trade spend, higher brand exclusivity and improved pricing and promotional plans improved pricing and promotional plans, limited shopper understanding, lower shopper counts

effective space management, improved shopper understanding, improved pricing and promotional plans

which of the following are appropriate uses for panel data? identify total dollars spent per shopping trip characteristics of light vs heavy users market basket value (or transaction size) when a specific item is purchased determine changes in market basket size all of these are correct

all of these are correct (panel)

which of the following is NOT a correct statement for the sales volume measure? "promoted sales" refer to sales generated during the presence of any type of promotional activity (feature, display, TPR) "volume" refers to number of units sold or total dollars generated from sales baseline and incremental sales are modeled or estimated (calculated) numbers baseline sales are the short-term spike in sales due to promotion activity

baseline sales are the short-term spike in sales due to promotion activity

what is the best definition below for "ACV"? all category volume; the total sales volume reported for a store or group of stores all commodity volume; the total category sales reported for a store or group of stores all commodity volume; the total sales volume reported for a store or group of stores

all commodity volume; the total sales volume reported for a store or group of stores

what are the 4 components of a SWOT analysis? shopper insights, warehouse withdrawals, organizational structure, timelines strengths, weaknesses, opportunities, turf protection strategy, workflow, operations, trade relations strengths, weaknesses, opportunities, threats

strengths, weaknesses, opportunities, threats

the category management process can best be described as: a co-operative effort retailers use with manufacturers to plan for category growth a collaborative effort between trading partners (retailers and manufactures to optimize the development of total category volume and profit) a manufacturer supported co-operative effort to build volume and profit none of these answers are correct the process retailers and manufacturers use to maximize profit

a collaborative effort between trading partners (retailers and manufactures to optimize the development of total category volume and profit)

what does DOS refer to in category management? days of service; a productivity measure that indicates length of time that an employee has worked for an organization days of supply; a measure that indicates the number of days that a inventory of a product will last and is usually based on previous sales days of stock; a logistic measure that indicates inventory turns

days of supply; a measure that indicates the number of days that a inventory of a product will last and is usually based on previous sales

which of the following terms is the name for the product price in retail stores when any merchandising condition (including feature display, price reduction) was in effect? promoted price non-promoted price incremental price average price

promoted price

which of the following is the best description for a retail store cluster? a grouping of stores based on retail sales ranking within a defined market area a group of stores located within a geographically defined market area a group of stores offering similar products within a defined market area a grouping of stores with similar characteristics based on the customer's demographics, lifestyles and other factors

a grouping of stores with similar characteristics based on the customer's demographics, lifestyles and other factors

which one of the following constitutes a limitation of consumer panel data? all of these answers are correct club purchases missed trips embarrassment categories

all of these answers are correct (limitations)

a price on an item that is reduced from its everyday regular price is referred to as: promoted price all of these answers are correct non-promoted price incremental price average price

promoted price (reduced)

which tactic (or combination thereof) typically driver traffic to a particular store? In-store display shelving and in-store merchandising in-store contests pricing and promotion

pricing and promotion

to develop a list of recommended deletes for a retail store, which of these actions should you take? add as many new products as possible use scan data provided by the retailer to identify low-performing items conduct a customer-satisfaction survey all of these answers are correct

use scan data provided by the retailer to identify low-performing items

which of the following data sources would be most valuable to use in setting item level pricing? weekly point of sales data warehouse shipment data consumer panel data loyalty data

weekly point of sales data

which is the best approach to analyze the results of an in-store test? 1. calculate the change in sales between the base and test period for both the control store and test store groups; 2. compare changes in the test store group to the change store group 1. calculate the change in sales between the base and test period for all stores; 2. compare changes in the test store group to those in the control store group 1. calculate total sales during the test period for both the control store and test store groups; 2. compare the differences in sales between the groups 1. extrapolate one sample from the test group one from the control group; 2. compare changes in sales between those 2 sample stores between the base period and the test period

1. calculate the change in sales between the base and test period for both the control store and test store groups; 2. compare changes in the test store group to the change store group

retail point of sale data is key to understanding all of the following except: sales volume % change vs year ago non of these issues can be understood exclusively using POS data market and ACV share store sales ranking % of stores carrying specific items

market and ACV share

which of the following is the best example of how category management may be applied at retail. through promotional lifts through retail strategy through marketing programs through assortment recommendations (limited assortment, broad assortment)

through assortment recommendations (limited assortment, broad assortment)

what is another description for the term "share of requirements", which measures how a product satisfies a consumer's category needs? leakage analysis category penetration brand identification product loyalty

product loyalty

which of the following is LEAST likely to be a part of a typical retailer's responsibilities in the category management process? establish a unique and specific category management process that works for their organization gather data from multiple places (POS, supplier, 3rd party data providers) set overall retail strategy ensure compliance at store level product development research

product development research

when a product is promoted in a weekly newspaper or in store circular or flyer, this activity is referred to as: an in-store display a program a feature a temporary price reduction

a feature

which of the following is not a trend specific to category management? development of multidimensional shelf management technology increased use of shopper insight to create better shopper solutions increased reliance on shopper card data integration of category management with shopper marketing to influence path to purchase increased industry consolidation for both retailers and manufacturers

increased industry consolidation for both retailers and manufacturers

the most influential trading partner in category management is: the retailer the manufacturer the consulting companies the solution and data providers

the retailer

which of the following is a measure you should analyze to evaluate pre- and post-promotion effectiveness? incremental sales generated from the promotion average lift in volume amount of subsidized volume impact of promotion on profit and margin all of these answers are correct

all of these answers are correct (promo)

which of the following is an "un-differentiated" market coverage strategy? ignore segmentation variables and go after the whole market with one brand operate in all or several segment of the market and design separate brands for each operate in one or only a few segments of the larger market, following a niche strategy with one brand none of these answers are correct

ignore segmentation variables and go after the whole market with one brand

which of the following is an "differentiated" market coverage strategy? ignore segmentation variables and go after the whole market with one brand operate in all or several segment of the market and design separate brands for each operate in one or only a few segments of the larger market, following a niche strategy with one brand none of these answers are correct

operate in all or several segment of the market and design separate brands for each

which of the following is LEAST likely to be a key data source or analytic technique used in category management? basket analysis consumer panel data fair share index (FSI) advertising spending ratio point of sale (POS) data

advertising spending ratio

which of the following are NOT assortment decisions? retain a given product currently carried delete certain product from the mix add items that sell well in the marketing but are not carried establish competitive pricing for new items added to the product assortment

establish competitive pricing for new items added to the product assortment

to perform a robust retail pricing analysis, which of the following would be LEAST IMPORTANT in your analysis? quantify the impact of price change on category sales performance compare the retailer's price to the overall marketplace focus on average price as the primary measure since it combines everyday pricing and promoted pricing quantify the impact of price change on segment sales performance measure the level of disocunt between promoted and non-promoted pricing

focus on average price as the primary measure since it combines everyday pricing and promoted pricing

______________ is the retail practice of marketing or displaying products from different categories together to generate additional revenue for the store multi-category promotion incrementality cross merchandising retail merchandising

cross merchandising

what is DSD in retail stores? Direct Stream Details; where retail stores get orders from the headquarters Decision Support Database; where Shopper information is gathered through loyalty cards Direct Store Delivery; where the manufacturer delivers products directly to retail stores

Direct Store Delivery; where the manufacturer delivers products directly to retail stores

the level of discount in price between regular price and TPR (temporary price reduction price) is most effectively measured using: a percentage a maximum efficiency quotient a dollar differential a correlation

a percentage

subsidized volume is calculated as the difference between ________________ and promoted sales baseline sales incremental sales volume sales cash sales

incremental sales

which of the following is NOT a benefit of efficient assortment planning? decreased inventory costs decreased consumer awareness increased sales reduced out of stocks

decreased consumer awareness

which of the following acronyms applies LEAST to category management? ERP (efficient replenishment of products): a term used in product assortment analysis ACV (all commodity volume): the total sales for a store or group of stores POG (planogram): a shelving schematic GMORI (Gross margin return on investment): an inventory profitability measure POS (point of sale): the retailers front-end cash register that scans products purchased and stores the information in a database

ERP (efficient replenishment of products): a term used in product assortment analysis

True or False: Markets vary by channel to reflect the inherent trading differences between channels

false (markets)

what are the most important measures to look at when analyzing "best" and "worst" promotion weeks for a product? points of distribution all of the answers are correct promotional effectiveness absolute incremental sales

absolute incremental sales

True or False: when determine the best product to promote, you should always promote the one which provided the biggest lift.

false (there are other things you need to consider)

which of the following product attributes is the best for matching up to the same product in syndicated data? combine manufacturer and brand descriptions to create unique product labels for cross referencing UPC code for cross-referencing (including private label items which are reported with their respective UPC codes in syndicated data) combine manufacturer and size descriptions to create unique product labels for cross referencing UPC code for cross-referencing (exception will be private label items which are not reported with their respective UPC codes in syndicated data)

UPC code for cross-referencing (exception will be private label items which are not reported with their respective UPC codes in syndicated data)

category management should be practiced in which of the following retail channels? DIY retailers online grocery stores none of these answers all of these answers are correct

all of these answers are correct (retail channels)

what is meant by household penetration? its the number of times a buyer purchases a product over a specific time period it's a loyalty measure by category for consumer households it's a measure to help retailers evaluate costs of goods sold it's the percentage of households purchasing a brand or category

it's the percentage of households purchasing a brand or category

what was the BIGGEST reason behind creating a category management process? to help retailers and suppliers make better decisions on pricing strategies to organize categories so that shoppers can see more categories in the store to help retailers and manufacturers reach consumers by enabling them to better understand what categories and tactics drive desirable behavior in the store to plan out shelf management effectively so consumers can easily make their decisions

to help retailers and manufacturers reach consumers by enabling hem to better understand what categories and tactics drive desirable behavior in the store

which of the following answers present the original category management process defined by the joint industry in the correct sequence? category definition, category role, category scorecard, category assessment, category strategies, categories tactics, plan implementation, category review category role, category definition, category assessment, category scorecard, category strategies, categories tactics, plan implementation, category review category definition, category role, category assessment, category scorecard, category strategies, categories tactics, plan implementation, category review none of these answers are correct

category definition, category role, category assessment, category scorecard, category strategies, categories tactics, plan implementation, category review

the statement "brand A should receive 45% of promotion support because it generates 45% of category sales" is an example of: correlation analysis regression analysis syndicated data analysis fair share analysis

fair share analysis

in the last 52 weeks a retailer had 100,000 category buyers and 10,000 bought brand A. on average, buyers purchased brand A five times over the year, and on each occasion they purchased two 8 oz. units at an average price $3.00 per unit. what is brand A's buying rate? $300 $6 $30 $3

$30

what is a combined performance index (CPI)? the total sales of all products in the category a demographic profile of a sales region's customers a combination of several metrics, such as dollar sales and unit sales, which provide an overview of a product's true impact on a category a chart that compares the total sales of product across several sales regions

a combination of several metrics, such as dollar sales and unit sales, which provide an overview of a product's true impact on a category

which of the following are not ideal time periods breaks, especially when integrating POS data syndicated data? 26 weeks 15 weeks 36 weeks 52 weeks 4 weeks

36 weeks

a measure that is weighted by product units sold while on discount and product units sold when no discount was present is called: discount average price average price promoted average price base price standardized price

average price

which of the following is NOT a question for assortment managers to address?.... which products have the highest slotting fees for placement? what are product deletion criteria? how does my current variety image compare with competitors? what will meet the variety needs of targeted customers? what are the cost benefits ratios of different levels of variety?

which products have the highest slotting fees for placement?

which of the following is an example of a promotional vehicle that retailers can use to drive incremental sales in their stores? in-store sampling displays bundled packs buy one get on free (BOGO) all of these answers are correct

all of these answers are correct (vehicles)

True or False: trended weekly or monthly scanner data is effective for evaluating seasonality

true (trends)

which of the following pricing strategies is Walmart's primary go to market approach? promotional EDLP hybrid pricing high-low

EDLP

what region of the united states of america has the lowest syndicated coverage vs other regions, and thus makes having the retailers POS data much more important? northwest northeast southwest southeast

northwest

what is the best way to measure retailer x's sales effect of a feature ad run during the third week in November? review syndicated data to identify baseline sales for the week, and compare the baseline to incremental sales (during the promotion) for the same week review the sales figures for the first and last weeks in November, then calculate the difference in sales for the incremental portion review sales from the second week in November as the baseline, and calculate the difference in incremental sales during the third week in november review syndicated scanner data to identify the total sales for November, and divide by 4 weeks to get the average monthly sales results

review syndicated data to identify baseline sales for the week, and compare the baseline to incremental sales (during the promotion) for the same week

what is the most important source of data used in category management? retailer measured data retail scanned data consumer panel data

retail scanned data

which of the following is NOT a category role? seasonal impluse/convenience routine traffic builder destination

traffic builder

what is a category? any array of products with common characteristics a segment of retail geography that has boundaries and specific merchandising plans a distinctly measurable and manageable grouping of products that are interrelated and substitutable a discrete collection of products that are interrelated none of these answers are correct

a distinctly measurable and manageable grouping of products that are interrelated and substitutable

when does retail measurement data (Scanned sales data) become syndicated data? when it is segmented into product groupings including brand, subcategory and category level data when it is "rolled up" to include and reflect channel and market data when it includes retail scanned sales data for total stores, across banners and geographies none of these answers are correct when it combines retail scanned sales, supplier shipment and market data

when it is "rolled up" to include and reflect channel and market data

consumer demographic in panel data would be LEAST likely to include which of the following? number, frequency and amount of purchases age, marital status, and income level credit cards used, dietary restrictions internet access, number of TV sets, magazine subscriptions

number, frequency and amount of purchases

which of these retailers is using store clustering analysis to merchandise their shelves? frank's hypermarket chain uses the same planogram in all 35 retail stores mary's grocery chain is running an in-store shelving test for 13 weeks in 10 of its 15 stores thiftway's grocery chain has a different product lineup and shelfset for stores located in more affluent urban areas speedy trip's convenience store chain changes its planogram by store according to regional sales data

thiftway's grocery chain has a different product lineup and shelfset for stores located in more affluent urban areas

which of the following should you NOT do when setting up an in-store test? systemically vary promotions, ad features and displays between the test and control stores in the pre-test period and the test period conduct the test for 13 weeks have a pre-test period that lasts the same length as the test period when stores are reset, leave for one-week gap between the completion of the resets and the start of the test period

systemically vary promotions, ad features and displays between the test and control stores in the pre-test period and the test period

which of the following syndicated geographies would be the next best alternative to use if retailer x's data was not available from a syndicated data vendor? market sales total channels retail sales competitive market sales regional markets

market sales

if you were managing a category with a cash/volume generating strategy, what pricing tactics would you employ? reduce margins to increase volume sold off deal price items in EDLP format avoid using items as EDLP

price items in EDLP format

True or False: a product's incrementality is driven primarily by strong advertising support

false (incrementality)

True or False: assortment planning technology can optimize product selection by efficiently sifting through scores of options to generate tailored plans that match retailers; product classification strategies

true (tech)

True or False: clustering is a core analytic approach in the development of category management plans and space management today

true (clustering)

Which of the following is an effect that changing consumer demographics are having on retailers? shopper clustering is increasingly important none of these answers are correct shelf plans are expanding shopper marketing is increasing in popularity category captains are more important

shopper clustering is increasingly important

how do light buyers differ from heavy buyers in their purchasing behavior? light buyers tend to buy healthy products and heavy buyers buy full-fat versions, but both will mix it up from time to time light buyers won't purchase as much or as frequently as heavy buyers light buyers buy roughly the same as heavy buyers, but they make a lot more trips because they only purchase a few products per trip light buyers primarily buy healthy products while heavy buyers don't discriminate purchases by health options

light buyers won't purchase as much or as frequently as heavy buyers

which of the following descriptions best describes syndicated scanner data? sales data complied across multiple retailers across a variety of distribution channels sales data complied across multiple manufacturers within a category sales data gathered from a retailer's point of sale system sales data gathered from manufacturers across multiple categories

sales data complied across multiple retailers across a variety of distribution channels

Dollar stores have begun to appeal to high income families in the united states and Canada. why is this happening? upscale families will pay higher prices for their favorite items in this channel low prices on certain items are important to some upscale families upscale families enjoy the large variety and selection offered by dollar stores

low prices on certain items are important to some upscale families

which of the following often yield category growth opportunities? performance assessment of the 4 P's all of these answers often yield category growth opportunities retail store audits sales trend analysis trading partner discussion of priorities shopper research

all of these answers often yield category growth opportunities

True or False: each retailer has different levels of access and reports/formats for their POS data

true (formats)

True or False: a "focus market" defines what products to consider in assortment analysis and in essence rules out products that are not substitutable

True (focus markets)

which of the following is a retail pricing strategy? EDLP hybrid pricing high/low all of these answers are correct frequent shopper pricing

all of these answers are correct (pricing strategy)

which of the following equations is correct? Total Sales= Baseline Sales / incremental sales Total Sales= Baseline Sales - incremental sales Total Sales= Baseline Sales x incremental sales Total Sales= Baseline Sales + incremental sales

Total Sales= Baseline Sales + incremental sales

which of the following formulae captures the correct calculation to measure level of discount between the promoted and non-promoted price? (promoted price - base price) * 100 ((non-promoted price - promoted price) / non-promoted price) * 100 (non-promoted price + promoted price) * 100 (non-promoted price - promoted price) * 100

((non-promoted price - promoted price) / non-promoted price) * 100

the focal point of category management is: the retailer the shopper the process the manufacturer

the shopper

which one of these statements best represents an attribute of a club store? club stores offer a better value for consumers and as a result of that the channel is growing a club store is less attractive to consumers because they can get similar items without paying a membership fee club store prices are rising because mass merchandisers are becoming more competitive club stores tend to have lower operating expenses and less overhead so prices are generally lower

club stores tend to have lower operating expenses and less overhead so prices are generally lower

why is it important to retain heavy buyers as shoppers? they make up a small percentage of buyers, but usually more willing to try new products they make up the largest percentage of buyers and a majority of the sales volume they represent a small percentage of buyers, but usually make up more of the sales volume they usually make up the largest percentage of buyers

they represent a small percentage of buyers, but usually make up more of the sales volume

which of the following is a "concentrated" market coverage strategy? operate in all or several segments of the market and design separate brands for each operate in one or only a few segments of the larger market, following a niche strategy with one brand none of these answers are correct ignore segmentation variables and go after the whole market with one brand

operate in one or only a few segments of the larger market, following a niche strategy with one brand

which of the following is NOT an incremental sales driver? TPR price regular price flyer/ad activity in-store display

regular price

which of the following statements is true as it relates to baseline and incremental sales? baseline sales is the total sales of all products in distribution for at least 52 weeks incremental sales is the net difference of total sales less all costs associated with running the promotion baseline sales is the normal expected sales volume in the absence of any promotion incremental sales is the portion of sales during any promotion that exceeds baseline volume by at least 10%

baseline sales is the normal expected sales volume in the absence of any promotion

True or False: shopper loyalty card information is always included in syndicated scanner data.

false (loyalty)

which of the following would NOT be a driver of baseline sales? distribution shelf space allocation non-promoted price advertising

advertising

Which of the following is not a driver of base sales? Distribution Non-promoted price Advertising Price reduction

Price reduction

True or False: if a product's sales are not affected with an increase in price, the product's price has low-elasticity

true (elasticity)

if 'ACV distribution' data is not available, what is an alternate measure that you can use to understand product distribution at an item level? % of stores carrying % of inventory turns % of volume % of out of stocks

% of stores carrying

which of the following best describes baseline sales? scanned sales within a given time period due to a trade promotion causal data collected by a syndicated data provider's field staff, who gathers information on displays, features and price reductions in store and the media the projected sales in a given time period that would have sold without any type of promotion total scanned sales at a product group level in a specific geography in a given time period

the projected sales in a given time period that would have sold without any type of promotion

which of the following evaluations is least likely to be done with POS data in isolation from other available data? store level productivity analysis internal promotional effectiveness analysis item level productivity analysis market gap analysis

market gap analysis

why might a retailer use point-of-sale data instead of syndicated data to analyze business results? the retailer prefers to analyze their won data the retailer wants to compare product margins the retailer wants to get a store level analysis all of these answers are correct

all of these answers are correct (pos)

the count or linear space (width) a single product occupies on the shelf

facing

the person who buys the product

shopper (or CUSTOMER)

additional sales beyond what is normally expected, due to promotional activity

Incremental sales (definition)

the end user of a product

consumer

product sales that would occur in the absence of any promotion

baseline sales

which of the following best describes in-store retail factors affected by SKU proliferation? variety, rotation, and ordering frequency variety, placement, and space customer service, reset schedules, and product education everyday prices, promoted price, and ordering frequency

variety, placement, and space

which of the following is NOT an example of a retailer promotional strategy? build price image induce trial drive impulse purchases build profit/loyalty make a competitive statement

drive impulse purchases

a retail chain has a strategy of carrying a "limited assortment". which of the following tactics would best match this strategy? limited assortment, high/low pricing, online service, smaller staff great selection, low prices, 24-hour service, small parking lot limited SKU counts, high/low pricing, product sampling, small store footprint limited SKU count, low prices, limited service, small store footprint

limited SKU count, low prices, limited service, small store footprint

shippers today often shop in how many different channels in an average month (examples of channels include c-store, grocery, hypermarket, super market, drug, mass, club, etc.)? 5 channels 1 supercenter channel 10 channels 2-3 channels

5 channels

which of the following is not part of the rend to consumer centric category management? fair share analysis demand gapping segmenting and targeting consumers trade spending analysis clustering stores

trade spending analysis

which of the following is the most effective way to analyze controlled store test results? complete analysis on a by-store basis to ensure a deep understanding of the test analyze the test results by breaking them out by "controlled stores" and "test stores" for proper understanding all of these are correct evaluate the data results within the timing of the test (not outside the controlled store testing time)

analyze the test results by breaking them out by "controlled stores" and "test stores" for proper understanding

True or False: panel data can be used to understand brand loyalty for different retailers and markets

true (loyalty)

True or False: syndicated panel data (or household panel data) is gathered from statistically reliable panels of consuming households that scan or record their purchases and for which they are compensated

true (purchases)

while analyzing sales figures, Chain A noticed a "week-after" effect. what does this mean? a portion of the incremental sales resulting from an in-store promotion occurred in the week following Chains A's sale reporting week no change was seen in Chain A's sales in the week following an in-store promotion there was a decline in Chain A's incremental sales in the week an in-store promotion there was a decline in Chain A's base sales in the week following an in-store promotion

a portion of the incremental sales resulting from an in-store promotion occurred in the week following Chains A's sale reporting week

when analyzing syndicated scanner data you can choose four parameters to narrow down your data query. what are they? season, placement, promotion type, and geography time, placement, geography, and store number season, product, promotion type, and measures time, product, geography, and measures

time, product, geography, and measures

which of the following analyses can not be performed using syndicated scanner data? unit sales demographic profiles gap analysis dollar sales fair share analysis

demographic profiles

which of the following LEAST describes the value that a pareto chart brings in an assortment analysis? it compares leading poorly performing SKUs it gives a visual representation of SKU rationalization none of these answers are correct it identifies the best deletion candidates starting on the left side of the chart

it identifies the best deletion candidates starting on the left side of the chart

which of the following best describes why pareto chart is often compared to the 80/20 rule? 80% of the category items not carried will always be carried by retailers who generate 20% of the market sales on average, 20% of the products generates 80% of the total sales volume 20% of the online retailers generate 80% of the product's assortment on a typical weekend (friday-sunday) on average, 80% of the inefficiencies in a given product assortment are generated by 20% of the products carried

on average, 20% of the products generates 80% of the total sales volume

True or False: some people confuse activity based costing with assortment management, but it is actually an advanced pricing model

false (confuse)

select the statement below that best describes a product that is incremental to a category: the product adds true variety to a product assortment within a category the products is gradually increasing in sales volume all of these answers are correct the product does not sell well, however it produces very high return on investment

the product adds true variety to a product assortment within a category

Retailer x wants to understand what will happen to his potential sales for item A if he increases distribution on the item from 85% to 95%. If the current sales for item A are $2000.00 , what is item's A sales potential? *current sales: $3,000 *current distribution: 85% *distribution target: 95% $3352.94 $2820.00 $2684.21 $2422.50

$3,352.94

At what product level is average unit price (both regular and feature) MOST effective, why?

ITEM level (average unit price should only be used at an item or line-priced level, because at category, brand or segment level, it is blended average)

Which of the following statements best completes the statement, "Promoted and non-promoted sales are:

Actual numbers gathered from syndicated scanner data

True or False: Category Development Index (CDI) = % of category $ sales in market X/ % of total population in market X

True (CDI)

True or False: Category Development Index (CDI) = Retailer Market Share / Total Category Market Share

False (CDI)

*= Volume Purchased (size) x frequency

Buying Rate (Formula)

When you analyze your syndicated scanner data, what is the logical flow you should follow to look at it?

Start at a high level (the category) and drill down to lower levels (segments, manufacturers, brands)

What is the best way to measure retailer X's sales effect of a feature ad run during the second week of april?

use syndicated scanner data to identify baseline sales, and compare the baseline to incremental sales due to the ad

How is buying rate calculated?

Multiply the volume purchase size by the purchase frequency

Base volume is additional sales beyond what is expected due to promotional activity