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CMA > CMA > Flashcards

CMA Flashcards

1
Q

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

A

all of these answers are correct

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2
Q

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

A

FALSE

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3
Q

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

A

FALSE

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4
Q

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

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

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5
Q

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

A

large dollar sales, high household penetration, high purchase
frequency

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6
Q

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

A

all of these answers are correct (data)

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7
Q

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

A

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

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8
Q

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

A

displays, temporary price reductions (TPR), promoted pricing

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9
Q

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

A

store cluster size

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10
Q

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

A

True

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11
Q

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

A

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

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12
Q

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

A

all of these answers are correct (channel)

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13
Q

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

A

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

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14
Q

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

A

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

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15
Q

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

A

all of these (sources)

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16
Q

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

A

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

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17
Q

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

A

all of these are correct (assortment)

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18
Q

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

A

audit data and scanner data

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19
Q

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

A

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

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20
Q

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

A

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

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21
Q

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

A

all of these are correct (POS)

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22
Q

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

A

8

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23
Q

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

A

TRUE

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24
Q

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

A

FALSE

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25
Q

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

A

at least 13 weeks, but no more than 26 weeks

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26
Q

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

A

true (GMROI

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27
Q

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

A

loss of volume to other channels or retailers

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28
Q

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

A

quality, value, and convenience

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29
Q

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

A

false (tech)

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30
Q

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

A

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

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31
Q

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

A

all of these are correct (panel)

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32
Q

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

A

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

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33
Q

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

A

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

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34
Q

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

A

strengths, weaknesses, opportunities, threats

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35
Q

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

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

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36
Q

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

A

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

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37
Q

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

A

promoted price

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38
Q

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

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

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39
Q

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

A

all of these answers are correct (limitations)

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40
Q

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

A

promoted price (reduced)

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41
Q

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

A

pricing and promotion

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42
Q

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

A

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

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43
Q

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

A

weekly point of sales data

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44
Q

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

A
  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
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45
Q

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

A

market and ACV share

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46
Q

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)

A

through assortment recommendations (limited assortment, broad
assortment)

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47
Q

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

A

product loyalty

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48
Q

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

A

product development research

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49
Q

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

a feature

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50
Q

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

A

increased industry consolidation for both retailers and manufacturers

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51
Q

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

A

the retailer

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52
Q

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

A

all of these answers are correct (promo)

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53
Q

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

A

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

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54
Q

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

A

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

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55
Q

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

A

advertising spending ratio

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56
Q

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

A

establish competitive pricing for new items added to the product
assortment

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57
Q

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

A

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

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58
Q

______________ 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

A

cross merchandising

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59
Q

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

A

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

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60
Q

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

a percentage

61
Q

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

A

incremental sales

62
Q

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

A

decreased consumer awareness

63
Q

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

A

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

64
Q

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

A

false (markets)

65
Q

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

A

absolute incremental sales

66
Q

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

A

false (there are other things you need to consider)

67
Q

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)

A

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

68
Q

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

A

all of these answers are correct (retail channels)

69
Q

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

A

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

70
Q

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

A

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

71
Q

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

A

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

72
Q

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

A

fair share analysis

73
Q

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

A

$30

74
Q

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

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

75
Q

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

A

36 weeks

76
Q

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

A

average price

77
Q

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?

A

which products have the highest slotting fees for placement?

78
Q

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

A

all of these answers are correct (vehicles)

79
Q

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

A

true (trends)

80
Q

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

A

EDLP

81
Q

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

A

northwest

82
Q

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

A

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

83
Q

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

A

retail scanned data

84
Q

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

A

traffic builder

85
Q

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

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

86
Q

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

A

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

87
Q

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

A

number, frequency and amount of purchases

88
Q

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

A

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

89
Q

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

A

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

90
Q

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

A

market sales

91
Q

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

A

price items in EDLP format

92
Q

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

A

false (incrementality)

93
Q

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

A

true (tech)

94
Q

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

A

true (clustering)

95
Q

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

A

shopper clustering is increasingly important

96
Q

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

A

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

97
Q

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

A

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

98
Q

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

A

low prices on certain items are important to some upscale families

99
Q

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

A

all of these answers often yield category growth opportunities

100
Q

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

A

true (formats)

101
Q

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

A

True (focus markets)

102
Q

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

A

all of these answers are correct (pricing strategy)

103
Q

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

A

Total Sales= Baseline Sales + incremental sales

104
Q

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

A

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

105
Q

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

A

the shopper

106
Q

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

A

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

107
Q

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

A

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

108
Q

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

A

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

109
Q

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

A

regular price

110
Q

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%

A

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

111
Q

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

A

false (loyalty)

112
Q

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

A

advertising

113
Q

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

A

Price reduction

114
Q

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

A

true (elasticity)

115
Q

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

A

% of stores carrying

116
Q

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

A

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

117
Q

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

A

market gap analysis

118
Q

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

A

all of these answers are correct (pos)

119
Q

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

A

facing

120
Q

the person who buys the product

A

shopper (or CUSTOMER)

121
Q

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

A

Incremental sales (definition)

122
Q

the end user of a product

A

consumer

123
Q

product sales that would occur in the absence of any promotion

A

baseline sales

124
Q

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

A

variety, placement, and space

125
Q

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

A

drive impulse purchases

126
Q

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

A

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

127
Q

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

A

5 channels

128
Q

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

A

trade spending analysis

129
Q

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)

A

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

130
Q

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

A

true (loyalty)

131
Q

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

A

true (purchases)

132
Q

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

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

133
Q

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

A

time, product, geography, and measures

134
Q

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

A

demographic profiles

135
Q

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

A

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

136
Q

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

A

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

137
Q

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

A

false (confuse)

138
Q

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

A

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

139
Q

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

A

$3,352.94

140
Q

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

A

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)

141
Q

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

A

Actual numbers gathered from syndicated scanner data

142
Q

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

A

True (CDI)

143
Q

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

A

False (CDI)

144
Q

*= Volume Purchased (size) x frequency

A

Buying Rate (Formula)

145
Q

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

A

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

146
Q

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

A

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

147
Q

How is buying rate calculated?

A

Multiply the volume purchase size by the purchase frequency

148
Q

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

A

NO

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