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CPCM > CPCM Study Guide > Flashcards

CPCM Study Guide Flashcards

1
Q

True or False. Assortment planning technology can optimize product selection by filtering options to generate tailored plans that match retailers product classification strategies

A

TRUE

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2
Q

Which of the following is the biggest limitation to applying Activity Based Costing?

A

The ability for Retailers to track/measure detailed cost data

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3
Q

What of the following statements BEST describes Activity Based Costing (ABC)?

A

A method to more accurately identify Overhead Costs when they are not tied to Direct Labor

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4
Q

What is the correct formula for GMROII?

A

Annual Profit/Average Inventory Cost

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5
Q

Which of the following descriptions does not describe activity-based costing?

A

A model that spreads the cost of a company’s activities evenly across all the company’s products. The costs are not allocated evenly across all products, but according to the amount that is consumed.

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6
Q

Which of the following most accurately describes Incremental Contribution? (Select the best answer)

A

Identifies the additional Category Volume from adding a particular item

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7
Q

A supplier decides to introduce a new product size in Brand A, which is a 12-pack of smaller-sized products than the original lineup. What is this an example of?

A

Product line extension. Because it’s a new item in the same brand in a different size.

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8
Q

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

A

FALSE

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9
Q

True or False. Vendors can create external data references to their syndicated scanned sales data from Nielsen or IRI

A

FALSE

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10
Q

Which of the following is the LEAST important consideration as it relates to creating a monthly store-level report that needs to be refreshed monthly with updated syndicated scanner data

A

Identify a contingency plan in case the data vendor databases go off-line

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11
Q

The data cube describes market facts along what 3 dimensions for a specific data measure (example % ACV)?

A

Product, geography, time period

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12
Q

True or False. Syndicated scanner data (derived by Nielsen or IRI) is sometimes considered incomplete because not all retailers in a market share their data

A

TRUE

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13
Q

Which of the following is the best analysis that you can perform through purchase frequency and shopping basket information in retail point of sale

A

Shopper insight analysis

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14
Q

What is Brand X’s purchase frequency if it has a total of 5,255 trips and 2,160 buying households?

A

2.4.
The formula is: purchase frequency = total number of trips (5,255) / buying households (2,160) = 2.4 purchase frequency

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15
Q

The “share of requirements” or “share of wallet” measures the extent to which a product satisfies a consumer’s requirements in a category. What is another term for this measure?

A

Product loyalty

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16
Q

Which of the following is an example of buyer conversion?

A

A widget category shopper usually buys widgets at Retailer X. While doing his grocery shopping at Retailer Y, he notices a floor display and decides to buy his widgets at Retailer Y instead of Retailer X.

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17
Q

What is the foundational data element used to organize and measure product performance in household panels?

A

UPC

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18
Q

A retail category manager analyzed the % of dollars they were capturing in the widget category, and the % they were losing to competition. Which of the following best describes this type of analysis?

A

Leakage analysis

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19
Q

. What is the share of category sales for Brand X given the following information:
Brand X $ sales = $225,000
Brand X unit sales = 50,800
Category $ sales = $984,000

A

The formula is: Brand X $ sales ($225,000) / Category $ sales ($984,000) = Share of category sales (22.9)

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20
Q

What is the difference between buyer conversion and leakage?

A

Buyer conversion measures the percentage of category buyers lost to other stores and leakage measures the percentage of category dollars lost.

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21
Q

Which innovation has most significantly advanced the grocery retailer’s control of the distribution channel?

A

The development of scanners and the UPC codes

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22
Q

Which of the following analysis examples is NOT enabled by the use of retailer’s POS data?

A

Competitive pricing analytics

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23
Q

True or false. Loyalty data has little to no value when creating store clustering.

A

FALSE

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24
Q

Why would you need to “cleanse” point-of-sale data you receive from a retailer?

A

The data must be checked for discrepancies and errors

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25
Q

Which of the following is the LEAST important requirement to establish effective retail store clusters?

A

Increased reliance on multiple data sources

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26
Q

True or false. Retail “store clustering” and “geographic grouping” are terms for the same thing.

A

FALSE

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27
Q

True or false. Retailer point of sale data is available in a consistent and standardized format across different retailers

A

FALSE

28
Q

When determining product assortment and considering how it affects the shelf, what are the two most important factors that retailers need to consider

A

Variety of items and shelf capacity

29
Q

Retailer X has listed a new “Brand X” on in its category assortment. This brand is a value-priced brand, similar to the more expensive Brand Y brand the retailer already carries in the category. What would be the best place to shelve these two brands to maximize sales

A

Retailer X should not place the brands adjacent to each other on the shelf to avoid trading down from Brand Y to the less expensive Brand X

30
Q

Product A has 6 facings and holds 6 units per facing. Its weekly movement is 10 units per week (520 units per year). What are the inventory turns for Product A?

A

14.4
520 units per year / (6 facings x 6 units per facing) = 14.4

31
Q

Of the following benefits to planogram development for retailers and manufacturers, which one LEAST benefits the all-important shoppers?

A

Maximizes ROI on the space utilized

32
Q

The bottom shelf in a gondola is usually deeper than the other shelves, and has more:

A

Shelf capacity

33
Q

Which of the following statements is LEAST accurate as it relates to shelf management?

A

Store level sales data should not be used in the development of planograms

34
Q

Retail scanned sales data usually includes which of the following types of information?

A

Dollar and unit sales, profit, transactional, basket and time aggregates.

35
Q

Which of the following attributes is not customarily used to create store clusters?

A

Shelf inventory

36
Q

Review the table that shows results of an in-store test. Which is the correct conclusion you can draw from this data?

A

The test stores performed better than the control stores by 12%

37
Q

Which of the following analytics is NOT available in retailer scanned sales data?

A

Market shares. Through a compilation of banners in the data

38
Q

Which of the following retail scanned sales data components allows retailers to track organic growth in their business (or all stores ex new store openings)?

A

Comp stores

39
Q

Refer to the diagram. Which brand is most reliant on TPR sales?

A

Brand B

40
Q

Which of the following measurements can be MOST influenced by ghost inventory, visual out of stocks, and location of inventory in the store?

A

In stock/Out of stock

41
Q

Following is some information about the “mid/upscale suburbs Age 18-34 with kids” demographic segment for the market and for store #55. Calculate the demand index based on this information and select the best answer (including demand index and interpretation from the answers below.
% households in market: .28
% households for store #55: 3.33

A

1189 demand index, indicating the store has a high % of households in the mid/upscale suburbs with kids relative to the market.

42
Q

Which of the following BEST describes what a product demand index measures?

A

The potential to have high demand for the product

43
Q

True or false. A demand index measures whether the target product group has been sold in a store.

A

FALSE

44
Q

You know that a specific consumer demographic is a target consumer for a manufacturer. What would be the best approach (using geodemographics) to identify the best stores to carry this product?

A

Use data management software to identify stores with heavy concentrations of the target consumer demographic

45
Q

Calculate the “Sales Index” based on the following information. (Hint: Calculate store sales per $MM ACV first)
Store sales= 10,000
Store ACV= $25,000

A

66

46
Q

Too much data can overwhelm anyone who is analyzing data. What is the best way to approach large data sets

A

Focus on key business issues

47
Q

Which of the following dimensions would NOT add value in a category health assessment?

A

All would add value to the assessment

48
Q

True or False. You should not segment item level data unless you have a properly researched consumer decision tree

A

FALSE

49
Q

What are the four key areas (or perspectives) that should be considered in a category review (also known as the “4 C’s”)?

A

Consumer, Category, Company, Competition

50
Q

How do you determine fair share of features for a brand?

A

Share of features for that brand divided by the brand’s dollar share within the category

51
Q

What is a causal factor tree?

A

It is a process used to determine how to perform a root cause analysis

52
Q

Why would a category manager need to use a cause and effect diagram?

A

To help identify, explore, and display possible causes related to a problem or condition

53
Q

Refer to the table. in which two segments is the retailer losing the most market share

A

Ground and Large

54
Q

Index vs ACV” calculations are an effective way for retailers to benchmark themselves against the market. What is ACV and how is it calculated?

A

All commodity volume, calculated by summing up all category sales within an area to get a total ACV number

55
Q

Name the four best drivers that a category manager should understand when assessing display performance

A

Reach, Response, quality, frequency

56
Q

information collected from shoppers who scan their purchases with hand held reader that automatically uploads the information to a syndicated data provider

A

Household panel data

57
Q

In-depth surveys, focus groups, observational, video monitoring, and ethnographic research

A

Qualitative & quantitative research

58
Q

Information collected by observing shoppers while they shop, then asking them a defined set of questions

A

In-store shopper research

59
Q

What is the difference between scanner data and panel data?

A

Scanner data helps you understand what has happened to a brand’s sales and share, while panel data helps you understand why a brand’s sales and share have declined or increased

60
Q

Data gathered from the individually recorded transactions of thousands of retailers, compiled into a database

A

Syndicated Scanned data

61
Q

A retailer’s income statement captures cash discounts from manufacturers in what section?

A

Other income

62
Q

Which line on the balance sheet captures merchandise inventory?

A

Current Assets

63
Q

if an item has average inventory levels of %75,000 and annual cost of goods sold of $450,000, what is its inventory turns

A

6
Cost of goods sold/average inventory

64
Q

If an item has a cost of $4.00 and a retail price of $7.50, what is its markup % (round to 1 decimal place)?

A

87.5 (Work= (Retail Price — Cost) / Cost = ($7.50-$4.00/4.00))

65
Q

True or False. Category managers can influence gross profit through retail price and unit cost

A

TRUE

66
Q

The lost sales from theft are accounted for in the income statement by:

A

Deducting it from sales as Shrink

CPCM (1 decks)

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