CMKG - CPCM Assortment Analysis Questions With Complete Solutions

1. Refer to the diagram. If the retailer's market coverage objective is 80, how many SKU's should they carry in this segment to meet their objective? correct answer: Answer: 5. You sum the cumulative segment shares of the items for total market (e.g. 24.9+22.7+17.4+11.4+8) until they add up to 80.0 market coverage. 2. True or false. Item level assortment within a category should be the same across retailers within the same channel. correct answer: Answer: False. Retailers will determine their product assortment based on the shoppers they want to attract to their stores. 3. 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? correct answer: Answer: Product line extension. Because it's a new item in the same brand in a different size. 4. Pareto Curve analysis helps you to determine which of the following? correct answer: Answer: The target number of items to carry in a category. A pareto curve helps you to establish how many items you should carry in a category. 5. Which of the following is the biggest limitation to applying activity based costing? correct answer: Answer: The ability for retailers to track/measure detailed cost data. It is very 6. True or false. The opposite effect of incremental contribution is cannibalization. correct answer: Answer: True. Cannibalization measures the volume loss on other