CPCA Mini Exams combined Questions With Complete Solutions 100% Solved

CPCA Mini Exams combined Questions With Complete Solutions 100% Solved • A measure that reflects the average product price in retail stores when any merchandizing condition was in effect: - answerPromoted price Average non promoted price: Average promoted price: Average price per unit: - answerhighest value lowest value median • At what product level is average unit price (both regular and feature) MOST effective, why? - answerItem 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 • Common retail go-to-market pricing strategies? - answerHigh/low pricing, hybrid strategies, EDLP • To perform a pricing analysis you might want to do all of the following except: - answerRely on average price as a more reliable measure than promoted price • Why would a retailer use a "blended margin" strategy? - answerTo balance the need where lower margins are needed on certain products and still achieving overall category margin by taking higher margins on other products • If a product sales are not affected when the price of that product is increased you can say that the product pricing has low elasticity - answerTrue • The average promoted price can be higher than the average non-promoted price within a given retailer - answerTRUE • Level of discount is calculated as - answer(Non-promoted price/ promoted price)/ Non- promoted price)* 100 • Index: - answerallow us to make direct comparisons of average sales between disparate product types Promoted price: - answeraverage product price in retail stores when any merchandizing condition was in effect Elasticity: - answerHow much the demand for a product changes when its price changes Syndicated source: - answerPoint of sale product data collected and analyzed for an overall market area • What data can be used to evaluate pricing strategy at an item level? - answerAll of the above: competitive pricing, weekly dollar sales, weekly regular and temporary price reduction • A measure that reflects the average product price in retail stores when any merchandising condition was in effect is called: - answerPromoted price • To perform a pricing analysis you might want to do all of the following except - answerFocus on average price as the primary measure since it combines everyday pricing and promoted pricing • At what product level is average unit price (both regular and feature) MOST effective and why? - answerItem level, average unit price should only be used at an item or line-priced level, because at a category, brand or segment level, it is a blended avg • Level of discount is usually measured in terms of a: - answerPercentage • A measure that is weighted by product units sold while on discount and product units sold when no discount was present is called: - answerAverage price • Which of the following data sources would be most valuable to use in setting item level pricing? - answerWeekly point of sales data • If you were managing a category with a cash generating strategy, what pricing tactics would you employ? - answerMatch competition but do not beat with lower prices, price items EDLP, maintain margins if possible • Why would a retailer use a "blended margin" strategy? - answerTo balance the need where lower margins are needed on certain products and still achieving category margin by taking higher margins on other products A reduction in the everyday product price on any SKU in retail stores is called: - answerpromoted price • Which of the following statements describes a product that is incremental? - answerA product that adds variety of choice relative to other existing products • Specialty retailers typically offer a limited selection of product lines with a broad number of items in each. This is an example of what type of assortment strategy? - answerNarrow and Deep • Market coverage analysis typically determines the cutoff point by which one of the following metrics? - answerCumulative share of sales with the comparison market • In order to identify potential product additions to a retailer's current assortment, the "market coverage" approach compares - answerItems selling well in the market, but not carried at the retailer • Which of the following best describes how to correctly read a pareto chart? - answerSKU's are listed in descending order (left to right) based on their individual contribution to sales • Assortment analysis should always include TWO Pareto charts- one for the overall market and another for the retail store or chain because it is not possible to plot both geographies on the same chart - answerFALSE • To develop a list of recommended deletes for a retail store, which of these actions should you take? Pick two - answerAnalyze the store's scan or POS data (identify low-performing items), and Analyze market data (identify items that have already been dropped by other retailers) • What is efficient assortment? - answerAll of the above: a key component of the industry's ECR initiative, a fact-based approach for identifying optimal product assortment, a disciplined process for eliminating product inefficiencies • What is SKU rationalization? - answerIt is the process of identifying poor performance items that should be deleted from the product assortment to improve category sales • Which of the following is a "concentrated" market coverage strategy? - answerOperate in one or only a few segments of the larger market, following a niche strategy with one brand • Which of the following is an "un-differentiated" marketing coverage strategy? - answerIgnore segmentation variables and go after the whole market with one brand • A "focus market" defines what products to consider in assortment analysis and in essence rules out products that are not substitutable - answerTRUE • Which of the following is not a question for assortment managers to address? - answerWhich products have the highest slotting fees for placement • Which of the following data sources is the least useful when completing product assortment analysis? - answerWarehouse shipment data