CMA EXAM QUESTIONS WITH VERIFIED ANSWERS
True or False. Category Management is only possible if you have a full suite of data and
automated tools to work with. - Answers - False - You can do category management -
just less sophisticated - with limited data & technology
Match up each component to their best description:
1. Category Assessment
2. Category Tactics
3. Category Scorecard
4. Category Strategies - Answers - 1. Uncovers the biggest areas of opportunity for the
retailer.
2. Creates action in the category and can have significant impact on sales and profits.
3. Tracks how the retailer is doing vs. category goals and targets.
4. Defines differentiated purposes for categories in the store.
What are the 4 prerequisites for category management? - Answers - Data,
Organizational Alignment, Collaborative Approach, Technical Tools/Automation
Which of the following statements regarding allocation of resources to categories is
most accurate? - Answers - Retailers should allocate resources to the category based
on the category's overall importance to the store and to their shoppers.
Consideration for which perspective will give you the winning formula in category
management? - Answers - All 3 of these perspectives are important for a winning
formula (Consumer, Retailer, Vendor)
There are several roles that retails may ask their vendors to participate in. _________
or Vendor Advisors may be responsible for providing labor assistance and helping them
grow the category for the retailer. _________ or Validators refer to vendors that a
retailer selects to provide supplemental data, resources, analytics, ideas, (and often a
second opinion). This results in a team capable of producing enough business analysis
and tactical programs to make the category management process succeed for the
retailer. - Answers - Category Captains, Category Advisors
Which of the following answers presents the original category management 8-step
process defined by the joint industry in the correct sequence? - Answers - 1. Category
Definition
2. Category Role
3. Category Assessment
4. Category Scorecard
5. Category Strategies
6. Category Tactics
7. Plan Implementation
,8. Category Review
Following are components of the category plan. Which element is where a retailer's
opportunity gaps are determined? - Answers - Market and Category Assessment
"To attract customer traffic down the aisle", "to increase impulse purchases", and "to turf
protect" are examples of what? - Answers - Category Strategies
In which retail channel is category management practiced? - Answers - All of these
answers are correct (Online, Drug, Mass + Club, Grocery)
In which of the following retailer strategy examples can only one retailer really "own" the
strategy with the consumer within a market? - Answers - Cheapest Price
True or False. Retailers may have more than one type of store format so that they can
attract different types of shoppers to each the different formats. - Answers - True
Retailer X focuses their strategies on their very important customer. Their fresh areas
like deli, meats, and products have a wide assortment of products, and they have a
carryout service and in-store childcare. They maintain consistent pricing slightly above
market price. What would their overall strategy most likely be? - Answers - Great
shopping experience and/or easiest to shop
Which of the following is a question that would LEAST likely be addressed in the retailer
strategy phase in category management? - Answers - What are category tactics?
Which of the following statements best represents an attribute of a Club (large format)
store? - Answers - They tend to have lower operating expenses and less overhead, so
prices are generally lower
A retailer's strategy will affect: - Answers - All of the answers are correct. (Category
Roles, Category Strategies, and Category Tactics)
Which type of private label branding is "a no name brand" often used to indicate the
lowest cost alternative options? - Answers - Generic Brand
Store Layout, Aisle layout, and category adjacency plans should all be included in what
piece of the retailer's strategy? - Answers - Product Placement
The retailer's operations team can have significant influence over implementation of
category plans at a store level. Which of the following is the responsibility that retail
operations would have the LEAST influence over? - Answers - They develop overall
strategies for the retailer
, Which tactic is most influenced by a retailer's Private Label/Store Brand strategy? -
Answers - All of the answers are correct. (Product Assortment, Product Placement,
Promotion, Pricing)
True or False. Maintaining item level segmentation is an ongoing process for retailers
and suppliers. - Answers - True. As new items are brought in. They need to be properly
segmented. This is usually tied into the new product launch process. Because of
remerchandising, space allocation; missing trends occurring in the marketplace.
How a retailer defines a category has implications on different areas of the retailer's
business. Match each of these areas on the left with the best description of what's more
specifically affected by the category definition on the right.
1. How data is segmented
2. How data is purchased
3. How product is purchased
4. How a company reports their business - Answers - 1. Affects the consumer decision
tree and hierarchical structure for the category.
2. Affects how items fit into syndicated, panel, and other sources (may not be aligned).
3. Affects which items a category manager "owns" in their portfolio.
4. Affects how the retailer's scorecards, goals, and objectives are established.
True or False. Without a consumer decision tree, the category cannot be segmented at
an item level. - Answers - False. There are other options available for segmenting data
if a consumer decision tree is not available.
The following are the four basic steps to create a price tier segment in your category
items for some great perspective. Put the steps in the right order to manually create a
price tier for your category. - Answers - 1. Calculate an average price per equalized
volume (e.g. price per ML, per gram, per dose) for each item in a category.
2. Create a price range for Value, Mid, and Premium based on item calculations (e.g.
Value = $1-$2, Mid = $2-$4, Premium = $4+)
3. Assign "Value", "Mid", or "Premium" to each item in the category.
4. Analyze the category with the "Value", "Mid", and "Premium" results.
Match the different ways to group products together on the left with the most
appropriate examples on the right.
1. Products that create a total store effect
2. Products that deliver solution to a similar consumer need
3. Products that are substitutable in consumer usage
4. Products that deliver a meal solution - Answers - 1. Total Juices & Drinks category
(includes chilled juices/drinks, shelf stable juices/drinks, fresh juices/drinks)
2. Salted Snacks category (includes potato snacks, pretzels, corn snacks)
3. Total Cough/Cold Products category (includes cough liquids, cough tablets, cough
powders).
4. Mexican Food category (includes condiments/salsas, dinner kits, rice and refried
beans, hot sauce).
True or False. Category Management is only possible if you have a full suite of data and
automated tools to work with. - Answers - False - You can do category management -
just less sophisticated - with limited data & technology
Match up each component to their best description:
1. Category Assessment
2. Category Tactics
3. Category Scorecard
4. Category Strategies - Answers - 1. Uncovers the biggest areas of opportunity for the
retailer.
2. Creates action in the category and can have significant impact on sales and profits.
3. Tracks how the retailer is doing vs. category goals and targets.
4. Defines differentiated purposes for categories in the store.
What are the 4 prerequisites for category management? - Answers - Data,
Organizational Alignment, Collaborative Approach, Technical Tools/Automation
Which of the following statements regarding allocation of resources to categories is
most accurate? - Answers - Retailers should allocate resources to the category based
on the category's overall importance to the store and to their shoppers.
Consideration for which perspective will give you the winning formula in category
management? - Answers - All 3 of these perspectives are important for a winning
formula (Consumer, Retailer, Vendor)
There are several roles that retails may ask their vendors to participate in. _________
or Vendor Advisors may be responsible for providing labor assistance and helping them
grow the category for the retailer. _________ or Validators refer to vendors that a
retailer selects to provide supplemental data, resources, analytics, ideas, (and often a
second opinion). This results in a team capable of producing enough business analysis
and tactical programs to make the category management process succeed for the
retailer. - Answers - Category Captains, Category Advisors
Which of the following answers presents the original category management 8-step
process defined by the joint industry in the correct sequence? - Answers - 1. Category
Definition
2. Category Role
3. Category Assessment
4. Category Scorecard
5. Category Strategies
6. Category Tactics
7. Plan Implementation
,8. Category Review
Following are components of the category plan. Which element is where a retailer's
opportunity gaps are determined? - Answers - Market and Category Assessment
"To attract customer traffic down the aisle", "to increase impulse purchases", and "to turf
protect" are examples of what? - Answers - Category Strategies
In which retail channel is category management practiced? - Answers - All of these
answers are correct (Online, Drug, Mass + Club, Grocery)
In which of the following retailer strategy examples can only one retailer really "own" the
strategy with the consumer within a market? - Answers - Cheapest Price
True or False. Retailers may have more than one type of store format so that they can
attract different types of shoppers to each the different formats. - Answers - True
Retailer X focuses their strategies on their very important customer. Their fresh areas
like deli, meats, and products have a wide assortment of products, and they have a
carryout service and in-store childcare. They maintain consistent pricing slightly above
market price. What would their overall strategy most likely be? - Answers - Great
shopping experience and/or easiest to shop
Which of the following is a question that would LEAST likely be addressed in the retailer
strategy phase in category management? - Answers - What are category tactics?
Which of the following statements best represents an attribute of a Club (large format)
store? - Answers - They tend to have lower operating expenses and less overhead, so
prices are generally lower
A retailer's strategy will affect: - Answers - All of the answers are correct. (Category
Roles, Category Strategies, and Category Tactics)
Which type of private label branding is "a no name brand" often used to indicate the
lowest cost alternative options? - Answers - Generic Brand
Store Layout, Aisle layout, and category adjacency plans should all be included in what
piece of the retailer's strategy? - Answers - Product Placement
The retailer's operations team can have significant influence over implementation of
category plans at a store level. Which of the following is the responsibility that retail
operations would have the LEAST influence over? - Answers - They develop overall
strategies for the retailer
, Which tactic is most influenced by a retailer's Private Label/Store Brand strategy? -
Answers - All of the answers are correct. (Product Assortment, Product Placement,
Promotion, Pricing)
True or False. Maintaining item level segmentation is an ongoing process for retailers
and suppliers. - Answers - True. As new items are brought in. They need to be properly
segmented. This is usually tied into the new product launch process. Because of
remerchandising, space allocation; missing trends occurring in the marketplace.
How a retailer defines a category has implications on different areas of the retailer's
business. Match each of these areas on the left with the best description of what's more
specifically affected by the category definition on the right.
1. How data is segmented
2. How data is purchased
3. How product is purchased
4. How a company reports their business - Answers - 1. Affects the consumer decision
tree and hierarchical structure for the category.
2. Affects how items fit into syndicated, panel, and other sources (may not be aligned).
3. Affects which items a category manager "owns" in their portfolio.
4. Affects how the retailer's scorecards, goals, and objectives are established.
True or False. Without a consumer decision tree, the category cannot be segmented at
an item level. - Answers - False. There are other options available for segmenting data
if a consumer decision tree is not available.
The following are the four basic steps to create a price tier segment in your category
items for some great perspective. Put the steps in the right order to manually create a
price tier for your category. - Answers - 1. Calculate an average price per equalized
volume (e.g. price per ML, per gram, per dose) for each item in a category.
2. Create a price range for Value, Mid, and Premium based on item calculations (e.g.
Value = $1-$2, Mid = $2-$4, Premium = $4+)
3. Assign "Value", "Mid", or "Premium" to each item in the category.
4. Analyze the category with the "Value", "Mid", and "Premium" results.
Match the different ways to group products together on the left with the most
appropriate examples on the right.
1. Products that create a total store effect
2. Products that deliver solution to a similar consumer need
3. Products that are substitutable in consumer usage
4. Products that deliver a meal solution - Answers - 1. Total Juices & Drinks category
(includes chilled juices/drinks, shelf stable juices/drinks, fresh juices/drinks)
2. Salted Snacks category (includes potato snacks, pretzels, corn snacks)
3. Total Cough/Cold Products category (includes cough liquids, cough tablets, cough
powders).
4. Mexican Food category (includes condiments/salsas, dinner kits, rice and refried
beans, hot sauce).
