1- Category management CPCA Practice Exam Questions With 100% Correct Answers

1- Category management CPCA Practice Exam Questions With 100% Correct Answers What are 3 business measures to be attached to any data source? - answerProduct, geography, time period. All data should be cited. Where should destination categories be placed in store and why? - answerWhere the retailer wants shoppers to go. Force them to pass buy impulse categories on the way, helping to drive higher margin impulse buys. A high % of retailer resources are allocated to categories with this role. - answerDestination What four things drive varying degrees of category management? - answerData availability, category importance, experience, and resources. Name three characteristics of destination roled categories. - answerHighly price sensitive/low margins, responsive to promotion, high volume/high OOS. What has happened in the retail industry to necessitate category management? - answerIncreased retailer and consumer expectations, data sources, new technology, and competition. Decreased shopper loyalty and time, product differentiation, and channel differentiation. Name some characteristics of routine roled categories. - answerEveryday products with high household penetration, adjacent or close to destination categories, somewhat price sensitive/average margins, good promotional response, strong volume. Is a category role universal? - answerNo. It will vary based on channel, retailer, or even banner. What is category management? - answerA retailer/vendor process of managing categories as strategic business units, providing enhanced business results by focusing on consumer value. What are the 4Ps? - answerProduct assortment, product placement, pricing, and promotion. Categories in this role are purchased impulsively and are not highly price sensitive. - answerConvenience Give four characteristics of image-building category strategies. - answerPrice - EDLP, for example Service Quality Assortment - high end & premium offerings How do you determine what groups of products belong together? - answer1. They deliver the solution to a similar consumer need; 2. They are substitutable in consumer usage; 3. They have similarities that when organized together create a total effect for the consumer. What % of shoppers are perimeter shoppers? How does category management impact this trend? - answerAbout 80%. Category management focuses on getting customers down the aisles. Define the seasonal category role. - answerA role specific to a holiday or season. Define the convenience category role. - answerImpulse buys. Consumer is already in the store and they pick up these items. Define the routine category role. - answerA category that is shopped regularly as part of a routine shopping pattern. Define the destination category role. - answerThe category that gets customers into the store in the first place. It is the 'signature' or 'hero' category that differentiates a retailer. Name four category roles - answerDestination, routine, convenience, seasonal What are some weaknesses to in-store observational data? - answerExpensive, difficult to sum banner results up to HQ level, a one-time audit may not represent the realities in a store. What questions should a retailer ask to determine what role a category will play for them? - answer1. Why is the item being carried? 2. Where should it be located? 3. How should it be merchandised, and in what assortment? 4. How should it be priced? Categories in this role are a part of the regular shopping pattern. - answerRoutine 55-70% of all categories are in this role primarily. - answerRoutin