CMKG CPCM Mini Exams UPDATED
Study Guide QUESTIONS AND
CORRECT ANSWERS
D. Cannibalization - CORRECT ANSWERS A Retailer
introduces a new item in Category A that causes Category B buyers to
switch their purchases from Category A to Category B. What is this an
example of?
A. Brand extension
B. Incremental contribution
C. Product Line extension
D. Cannibalization
True (space planning) - CORRECT ANSWERS True or false?
When you're completing an assortment and space planning project, it's
best to import the item level data directly into the POG software.
D. All of these are justifications for expanding category space -
CORRECT ANSWERS Which of the following is not a
justification for expanding category space within a retail
environment?
A. Changes in category profitability
B. Changing consumer preferences
C. Changing category role
D. All of these are justifications for expanding category space
,E. Category growth
B. Product line extension - CORRECT ANSWERS 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. Brand extension
B. Product line extension
C. Cannibalization
D. Incremental contribution
C. % of stores carrying - CORRECT ANSWERS If 'ACV
Distribution' data is not available, what is an alternate measure that
you can use to understand product distribution at an item level?
A. % of volume
B. % of inventory turns
C. % of stores carrying
D. % of out of stocks
D. Identifies the additional category volume from adding a particular
item. - CORRECT ANSWERS Which of the following most
accurately describes incremental contribution? (Select the best
answer)
A. Is the additional item volume realized from the addition of an item.
,B. All of these describe incremental contribution.
C. Is the volume to be expected when adding an item to a category.
D. Identifies the additional category volume from adding a particular
item.
B. False. Different target Shoppers will determine the assortment
choices for different Retailers. - CORRECT ANSWERS True
or false? Item level assortment within a category should be the same
across retailers within the same channel.
A. True. Assortment choices are driven by the overall consumer
shopping in the market.
B. False. Different target Shoppers will determine the assortment
choices for different Retailers.
True (cannibalization) - CORRECT ANSWERS True or false?
The opposite effect of incremental contribution is cannibalization.
A. All of these answers are correct. - CORRECT ANSWERS
What could be a purpose of a total store space analysis project?
A. All of these answers are correct.
B. To determine the amount of space each category deserves,
according to the criteria used by the retailer.
C. To be certain that a category is getting its fair share of space.
D. To benchmark every category's space in the store.
, True (product mix) - CORRECT ANSWERS True or false?
Product mix is an important tactic for retailers to optimize for shopper
satisfaction.
D. Incremental Contribution - CORRECT ANSWERS A
retailer introduces a new item in the widget category and offers it at a
premium. Buyers that usually buy lower-priced widgets decide to try
the new item instead of the widget items they usually buy. What is
this an example of?
A. Product Line Extension
B. Brand Extension
C. Cannibalization
D. Incremental Contribution
B. A model that spreads the cost of a company's activities evenly
across all the company's products - CORRECT ANSWERS
Which of the following descriptions does not describe activity-
based costing?
A. A model that assigns the cost of a company's activities to all the
company's products, according to the amount each product actually
consumes
B. A model that spreads the cost of a company's activities evenly
across all the company's products
C. A model that accounts for the cost of overhead in the cost of a
company's products
D. A model that translates indirect costs into direct costs
Study Guide QUESTIONS AND
CORRECT ANSWERS
D. Cannibalization - CORRECT ANSWERS A Retailer
introduces a new item in Category A that causes Category B buyers to
switch their purchases from Category A to Category B. What is this an
example of?
A. Brand extension
B. Incremental contribution
C. Product Line extension
D. Cannibalization
True (space planning) - CORRECT ANSWERS True or false?
When you're completing an assortment and space planning project, it's
best to import the item level data directly into the POG software.
D. All of these are justifications for expanding category space -
CORRECT ANSWERS Which of the following is not a
justification for expanding category space within a retail
environment?
A. Changes in category profitability
B. Changing consumer preferences
C. Changing category role
D. All of these are justifications for expanding category space
,E. Category growth
B. Product line extension - CORRECT ANSWERS 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. Brand extension
B. Product line extension
C. Cannibalization
D. Incremental contribution
C. % of stores carrying - CORRECT ANSWERS If 'ACV
Distribution' data is not available, what is an alternate measure that
you can use to understand product distribution at an item level?
A. % of volume
B. % of inventory turns
C. % of stores carrying
D. % of out of stocks
D. Identifies the additional category volume from adding a particular
item. - CORRECT ANSWERS Which of the following most
accurately describes incremental contribution? (Select the best
answer)
A. Is the additional item volume realized from the addition of an item.
,B. All of these describe incremental contribution.
C. Is the volume to be expected when adding an item to a category.
D. Identifies the additional category volume from adding a particular
item.
B. False. Different target Shoppers will determine the assortment
choices for different Retailers. - CORRECT ANSWERS True
or false? Item level assortment within a category should be the same
across retailers within the same channel.
A. True. Assortment choices are driven by the overall consumer
shopping in the market.
B. False. Different target Shoppers will determine the assortment
choices for different Retailers.
True (cannibalization) - CORRECT ANSWERS True or false?
The opposite effect of incremental contribution is cannibalization.
A. All of these answers are correct. - CORRECT ANSWERS
What could be a purpose of a total store space analysis project?
A. All of these answers are correct.
B. To determine the amount of space each category deserves,
according to the criteria used by the retailer.
C. To be certain that a category is getting its fair share of space.
D. To benchmark every category's space in the store.
, True (product mix) - CORRECT ANSWERS True or false?
Product mix is an important tactic for retailers to optimize for shopper
satisfaction.
D. Incremental Contribution - CORRECT ANSWERS A
retailer introduces a new item in the widget category and offers it at a
premium. Buyers that usually buy lower-priced widgets decide to try
the new item instead of the widget items they usually buy. What is
this an example of?
A. Product Line Extension
B. Brand Extension
C. Cannibalization
D. Incremental Contribution
B. A model that spreads the cost of a company's activities evenly
across all the company's products - CORRECT ANSWERS
Which of the following descriptions does not describe activity-
based costing?
A. A model that assigns the cost of a company's activities to all the
company's products, according to the amount each product actually
consumes
B. A model that spreads the cost of a company's activities evenly
across all the company's products
C. A model that accounts for the cost of overhead in the cost of a
company's products
D. A model that translates indirect costs into direct costs
