CMT Certification exam with correct answers 2024

which of the following is NOT a trend specific to category management -increased industry consolidation for both retailers and manufacturers -increased use of shopper insights to create better shopper solutions -development of multidimensional shelf management technology -integration of category management with shopper marketing to influence path to purchase -increased reliance on shopper card data - correct answer increased consolidation for both retailers and manufacturers consumer definition - correct answer end user of product facing - correct answer count or linear space a single product occupies baseline sales - correct answer product sales that would occur in the absence of any promotion shopper - correct answer person who buys the product incremental sales - correct answer additional sales beyond what is normally expected, due to promotional activity shoppers today often shop in many different channels in an average month - correct answer 5 channels dollar stores have begun to appeal to high income families in the united states and canada. why is this happening? - correct answer low prices on certain items are important to some upscale families why is channel blurring occurring in the retail industry - correct answer all answers are correct: (-retailers are looking for new ways to increase consumer spending in their stores by offering new categories and services -there is an increased consumer demand for convenience -retailers are carrying new items beyond the typical assortment within a channel -there is growth of new store formats and offerings in the retail industry) what is DSD in retail stores - correct answer direct store delivery: where the manufacturer delivers products directly to retail stores DSD - correct answer is a key method of selling and distributing products directly to stores which of the following best describes a shoppers primary concerns driving purchase decisions - correct answer quality, value and convenience which of the following gives the BEST examples of outcomes from batman that can positively impact retailer performance - correct answer effective space management, improved shopper understanding, improved pricing and promotional plans what are the four components of a SWOT analysis - correct answer strengths, weaknesses, opportunities, threats focal point of category management is - correct answer the shopper SWOT - correct answer excellent tool to use when assessing a category or completing any type of analysis across different measures, markets and products most common characteristics of the destination role in grocery formats - correct answer large dollar sales, high household penetration, high purchase frequency true or false? improved technology is the major reason that category management has been successful - correct answer false= technology has helped category management but there are other equally important reasons like collaboration, improved data access, and increased shopper understanding category management should be practiced in which of the following retail channels - correct answer all of the answers are correct: (-online retailers -grocery stores -DIY (Do It Yourself) retailers -and others) which of the following is the BEST example of how category management may be applied at retail - correct answer through assortment recommendations (ex. limited assortment, broad assortment) assortment - correct answer is one way that catman can be applied, as it is one of the tactics which is the most common issue in retail point of sale data that requires you to "cleanse" the data before analyzing it - correct answer product UPC codes (item codes), descriptions and sizes may be inaccurate or incorrectly assigned to a category which of the following is the most effective way to analyze controlled store test results - correct answer analyze the test results by breaking them out by "controlled stores" and "test stores" for proper understanding each retailer has different levels of access and reports/formats for their POS data - correct answer true different retailers have different POS systems and different reporting systems, which determine the level of access and reports available to view their data which of the following product attributes is the best for matching up to the same product in syndicated data - correct answer UPC code for cross referencing (exception will be private label items which are not reported with their respective UPC codes in syndicated data when conducting an in store test, how long should the testing period typically be - correct answer at lease 13 weeks but no more than 26 which of the following evaluations is LEAST likely to be done with POS data in isolation from other available data - correct answer market gap analysis POS does not include any type of market data why might a retailer choose to use POS data instead of syndicated data to analyze business results - correct answer All correct: (-retailer wants to get a store level analysis -retailer wants to compare product margins -retailer prefers to analyze their own data ) POS data - correct answer you can get store level data, margin, and profit margin and profit information and links to inventory and shipment data through retail POS data retail point of sale data is key to understanding all of the following except: -sales volume % change vs year ago -none of these issues can be understood exclusively using POS data -stores sales rankings -% of stores carrying specific items -market and ACV share - correct answer market and ACV share which is the best approach to analyze the results of an in store test - correct answer 1. calculate the change in sales between the base and test period for both the control store and the test store groups 2. compare changes in the test store group to the control store group which of the following measures is NOT available through panel data - correct answer store cluster size (this measure is driven by each unique retailer) how do light buyers differ from heavy buyers in their purchasing behavior - correct answer light buyers won't purchase as much or as frequently as heavy buyers which of the following best describes the purpose of a ?market basket analysis" - correct answer to identify the total value of all items included in the "basket" during an average shopping trip when certain items are included or not in the "basket" market basket analysis - correct answer great way to understand the size of the total basket when specific items are in the basket and creating comparisons which of the following constitutes a limitation of consumer panel data - correct answer all of these answers are correct (-missed trips (ifs consumers forget to record to scan impulse or instant consumable purchases) -embarrassment categories (if consumers don't want to be associated with certain products that they purchase) -club categories (if consumers purchase products for business, groups or associations) why is it important to retain heavy buyers as shoppers - correct answer they represent a small percentage of buyers, but usually make up a majority of the sales volume which of the following best describes the term leakage in panel data - correct answer loss of volume to other channels or retailers consumer demographics in panel data would be LEAST likely to include which of the following -internet access, number of tv sets, magazine subscriptions -credit cards used, dietary restrictions -age, marital status and income level -number, frequency, and amount of purchases - correct answer number, frequency, and amount of purchases which of the following is NOT an incremental sales driver - correct answer regular price true or false? the following is the correct formula for category development index (CDI) CDI= brand or segment share at a retailer/brand or segment share in market - correct answer TRUE why is it important for a retailer to understand the seasonality of sales for a product like school supplies - correct answer all of these are correct (-most sales and merchandising of school supplies occur primarily in the months prior to and at the beginning of the school semester -because school supplies is a seasonal category, retailers that don't consider seasonality might overestimate the impact that trade promotions have on sales -without consideration for seasonality, baseline units for school supplies would be underestimated during the peak sales months and overestimated during the winter months) which of the following syndicated geographies would be the next best alternative to use if retailer X's data was not available from a syndicated data vendor - correct answer market sales highest share per SKU - correct answer brand share/# of SKUs syndicated scanner data is comprised of two types of data including - correct answer audit data and scanner data audit= promotional in store and circular activity gathered by field staff scanner=POS data gathered from retailers syndicated scan data can be used to provide sophisticated analysis to all of the following except one -gap analysis -unit sales -gross national product indices by country -dollar sales -demographic profiles -fair share analysis - correct answer demographic profiles which of the following should you NOT do when setting up an in store test -have a pretest period that lasts the same length as the test period -systematically vary promotions, ad features, and displays between the test and control stores in the pretest period and the test period -conduct the test for 13 weeks -when stores are reset for the test, leave a one gap between the completion of the resets and the start of the test period - correct answer systematically vary promotions, ad features, and displays between the test and control stores in the pretest period and the test period highest sales per point of distribution - correct answer sales/distribution true or false? shopper loyalty card information is always included in syndicated data - correct answer FALSE shopper loyalty information is available in retailer POS data but not in syndicated scanner data select the statement that best describes a product that is incremental to a category - correct answer the product adds true variety to a product assortment within a category true or false? some people confuse activity based costing with assortment management, but it is actually an advanced pricing model - correct answer false true or false? a focus market defines what products to consider in assortment analysis and in essence rules out products that are not substitutable - correct answer true which of the following is a differentiated market coverage strategy - correct answer operate in all or several segments of the market and design separate brands for each which of the following is a concentrated market coverage strategy - correct answer operate in one or only a few segments of the larger market, following a niche strategy with one brand which of the following is not a question for assortment managers to address -how does my current variety image compare with competitors -what are the cost benefit ratios of different levels of variety -which products have the highest slotting fees for placement -what are product deletion criteria -what will meet the variety needs of targeted customer - correct answer which products have the highest slotting fees for placement which of the following analyses can be used to identify assortment opportunities within a category - correct answer all of these answers are correct: (SKU productivity consumer decision tree analysis fair share analysis market gap analysis) what is a combined performance index (CPI) - correct answer a combination of several metrics, such as dollar sales and unit sales, which provide an overview of a products true impact on a category true or false? a stores image has very little to do with product assortment - correct answer fale product assortment has a direct reflection on a stores image which of the following best describes what the pareto chart is often compared to the 80/20 rule - correct answer on average, 20% of the products generates 80% of the total sales volume what is SKU rationalization - correct answer the process of identifying poor performance items that should be deleted from the product assortment to improve category sales (and improve turns) which of the following LEAST describes the value that a pareto chart brings in an assortment analysis - correct answer it identifies the best deletion candidates starting on the left side of the chart -it does not actually identify which products (but the # of items) and its the ones on the right side of the chart that are least productive which of the following formulae captures the correct calculation to measure level of discount between the promoted and non promoted price - correct answer ((non-promoted price-promoted price)/non-promoted price)*100 to perform a robust retail pricing analysis, which of the following would be LEAST IMPORTANT in your analysis - correct answer focus on average price as the primary measure since it combines everyday pricing and promoted pricing true or false? the average promoted price can be higher than the average non-promoted price at the same retailer - correct answer TRUE a price on an item that is reduced from its everyday regular price is referred to as - correct answer promoted price which of the following is a retail pricing strategy - correct answer all of these are correct: (hybrid pricing hi/lo EDLP frequent shopper pricing) why do some retailers choose to use a blended margin strategy - correct answer to balance lower margins required on more price sensitive products with higher margin products to achieve category margin objectives blended margin approach - correct answer allows retailers to have different margin objectives for different items in the category that considers price sensitivity for shoppers if you were managing a category with a cash/volume generating strategy, what pricing tactics would you employ - correct answer price items in EDLP format when a product is promoted in a weekly newspaper or in store circular or floor, this activity is referred to as - correct answer a feature what are the most important measures to look at when analyzing "best" and "worst" promotion weeks for a product - correct answer absolute incremental sales subsidized volume is calculated as the difference between (X) and promotional sales - correct answer (X)= incremental sales which of the following statements best describes the term lift - correct answer a measure used to indicate an increase in product sales volume due to some type of tactical activity which of the following is NOT an example go a retailer promotional strategy - correct answer ????? which of the following is NOT a correct statement for the sales volume measure? - correct answer baseline sales are the short term spike in sales due to promotion activity what tactic (or combination thereof) typically drive traffic to a particular - correct answer pricing and promotion the statement "brand A should receive 45% of promotion support because it generate 45% of category sales" is an example of - correct answer fair share analysis which of the following statements is true as it related to baseline and incremental sales - correct answer baseline sales is the normal expected sales volume in the absence of any promotion which of the following is a measure you should analyze to evaluate pre and post promotion effectiveness - correct answer all of these answers are correct (-impact of promotion on profit and margin -average lift in volume -the amount of subsidized volume -incremental sales generated from the promotion) (BLANK) is the retail practice of marketing or displaying products from different categories together to generate additional revenue for the store - correct answer cross merchandising true or false? when determining the best product to promote you should always promote the one which provided the biggest lift - correct answer false. there are other things you need to consider (examples of other things profits pantry loading and meeting shopper needs) if I want to rearrange the order of my worksheets within a workbook, how do I do it - correct answer left click on the worksheet tab at the bottom, of the page which you want to move, hold the mouse button down and drag the sheet to where you want it in the order the easiest way to do basic copying and formatting functions when you are not on the home tab is to - correct answer right click any cell and these functions are available which of the following methods will correctly sort the following data so that the top selling store is at the op and the smallest store is at the bottom - correct answer sort by "sales" in descending fashion how do you share a worksheet from one workbook to another - correct answer right click on the worksheet tab at the bottom, select move or copy, indicate the book you want it to go to, where in the book you want it, and if this is a copy or move where do you go to change the formatting of the font and what aspects can you change from there - correct answer from the "font section" on the home ribbon/menu, or off the font tab on dropdown menu "format/cells"... you can change the font, the style and size, text color, underlining, and font effects if you want to see two workbooks at the same time, how is this accomplished - correct answer ???? why would you want use use conditional formatting - correct answer to apply specific formatting to data that meets certain criteria to highlight a cell or group of cells you need to do the following - correct answer click on a cell at one of the corners of your selection, hold down the left mouse button, scroll over the cells you wish to select and release the left mouse button if you want to turn on the data filters for a table of data, which of the following will work - correct answer click not he data ribbon/menu and then click on the funnel icon button to add data labels to an existing chart, what steps do you take - correct answer right click on the chart, select format data labels, and select you label options and label position excel and powerpoint offer similar charting functionality. why would it be beneficial to use an excel chart - correct answer all of these answers are correct (-you are looking at a series of data and want to quickly see it represented on a chart -you are creating a chart from data you refresh on a frequent basis. having this chart in excel allows you to just update the data series and the chart will update automatically -you want to display your range and chart on one easy page) how do you add labels to your chart (PPT) - correct answer right click on the data series and select add data labels how do you create a chart within PPT - correct answer go insert ribbon/menu within PPT and select chart does PPT include a spell check feature and if so where is it located - correct answer yes, on review ribbon/menu which ribbon/menu has the majority of common formatting choices for your slide content - correct answer the home ribbon/menu which of the following will NOT work if you want to add a picture graphic to your slide - correct answer from the animations ribbon/menu, click on animation pane and select the desired graphic file (WILL WORK: -from insert menu click on picture icon and select desired graphic file -from internet window right click on a graphic image and then paste on to your slide -from your file manager or windows explorer view, drag and drop a graphic file on your slide) which tab do you go to create new or open existing presentations - correct answer file ribbon/menu if you want to rearrange the order of slides in a presentation, where do you go - correct answer to the view ribbon/menu and then select slide sorter from the ribbon true or false? a category should have the same definition across all retailers - correct answer false. each retailer has unique target consumers based on their overall retail strategies, which should drive the category definitions why is category definition important - correct answer ensures clear category definitions, avoid consumer confusion, avoids isolated solutions. It affects category tactics. retail buying, how data is purchased, how data is segmented and how a company reports their business how do you determine how to group products together - correct answer products that 1) deliver the solutions to a similar consumer need 2) are substitutable in consumer usage and/or 3) have similarities that when managed together create a total effect for the consumer what areas of business does category segmentation affect - correct answer goal and objectives, scorecards and reports, pricing and promotion, assortment and shelving what are some examples of common category segments - correct answer size=s,m,l or servings format= powder, liquid, solid subsegments=adult, kids, family age groupings=infant, toddler, child, teen,adult flavour=scented/unscented price tier= value mid, premium brand manufacturer how to create a price tier in your category data - correct answer 1. calculate an average price per equalized volume 2. create a price range for value, mid and premium based on calculations 3. assign category definition does NOT affect which of the following areas of business - correct answer ??????all of these (how product is purchased how data is segmented how a company reports their business how data is purchased)????? products that deliver solution to a similar consumer need - correct answer salted snacks category products that deliver a meal solution - correct answer mexican food category products that create a total store effect - correct answer total juices and drinks category products that are substitutable in consumer usage - correct answer total cough/cold products category true or false? defining and segmenting the category is part of the category plan development in the category management model - correct answer false. it is part of the retailer strategy true or false? without a consumer decision tree, the category cannot be segmented at an item level - correct answer ????true. a research based consumer decision tree is the only option for segmenting data ????? category definitions determine which groups of product belong together based on consumer needs. which of the following questions is LEAST likely to determine which products should be grouped together products: -are substitutable -deliver solution to similar consumer need -have similarities that when managed together create a total effect for consumer -when co merchandised together, build incremental sales - correct answer which products, when co merchandised together, build incremental sales true or false? maintaining item level segmentation is an ongoing process for retailers and suppliers - correct answer true. as new items are brought in, they need to be properly segmented. this is usually tied into the new product launches how a company reports their business affects= - correct answer category definition: how the retailers scorecards, goals and objectives are established category definition: how data is purchased affects - correct answer how items fit into syndicated, panel and other sources (may not be aligned) category definition: how data is generated affects - correct answer the consumer decision tree and hierarchical structure for the category category definition: how product is purchased affects - correct answer which items a category manager "owns" in their portfolio category strategy - correct answer assortment, shelving, pricing, promotion category plan-->category role-->category strategy--> - correct answer assortment, shelving, pricing, promotion category strategies - correct answer traffic building transaction building turf defending excitement creating image enhancing cash generating profit generating shopper based category strategies - correct answer traffic building transaction building turf defending excitement creating image enhancing financial based category strategies - correct answer cash generating profit generating multiple strategy leverage example: organic baby food - correct answer image enhancing and profit generating multiple strategy leverage example: laundry detergent - correct answer transaction building and cash generating (loss leaders) which of these examples is NOT a category strategy - correct answer occasional traffic building helps to - correct answer increase the size of the shopping basket true or false? category strategies can be customized to increase creativity and uniqueness to categories for retailers - correct answer true. customizing category strategies can add in uniqueness, but can also result in more complexity for retailers what strategy is typically assigned to few, highly visible, frequently purchased, high ring items with competitive pricing well known to shoppers - correct answer turf protecting what is the purpose of the traffic building category strategy - correct answer all answers correct (draw more people down the aisle increase traffic in store draw more people into the store) traffic building - correct answer retailers use these categories to bring shoppers into specific departments or aisles turf protection - correct answer retailers communicate their aggressive pricing strategies to consumers image enhancing - correct answer retailers use these categories to have a positive impact os shoppers through price, service, quality and/or assortment transaction building - correct answer retailers use these categories to trigger the purchase of other products/related items if retailers assign "cash flow" and "profit r=generating" strategies to categories, what else should they include in the strategy - correct answer a secondary strategy that relates to the consumer true or false? category strategies need to be aligned to the category role, and set the foundations for the corresponding category tactics - correct answer TRUE true or false? categories strategies can be customized to increase creativity and uniqueness to categories for retailers - correct answer true, customizing category strategies can add in uniqueness, but can also result in more complexity for retailers what do you need to know before you can effectively assign a category strategy - correct answer retailers overall strategies and the role assigned to the category large christmas displays and easter displays are good examples of which category strategy - correct answer excitement creating display, pricing and promotion usually create an increase in sales versus if the product was not given one of these conditions. what is this increase in sales called? - correct answer lift true or false? categories that are assigned different roles should be allocated a different percentage of resources by the retailer - correct answer true. the most important categories should have more resources allocated to them which of the following is not a category role -convenience -seasonal -destination -routine -traffic builder - correct answer traffic builder ture or false? assignment of category roles requires that retailer take a broad look across their category mix to determine the categories relative importance - correct answer TRUE matching category roles with corresponding assortment strategy: SEASONAL - correct answer broad variety for categories in their peak times matching category roles with corresponding assortment strategy: ROUTINE - correct answer broad variety across subcategories, with major brands and items being carries matching category roles with corresponding assortment strategy: DESTINATION - correct answer largest variety from a subcategory, segment and brand level, down to an item level matching category roles with corresponding assortment strategy: CONVENIENCE - correct answer limited variety with only major brands and key items being carried categories playing what role(s) should be shelved besides destination categories to prompt impulse purchases? - correct answer routine and convenience matching category role with pricing strategy: DESTINATION - correct answer price leader matching category role with pricing strategy: OCCASIONAL/FILL IN - correct answer frequently competitive matching category role with pricing strategy: ROUTINE/PREFERRED - correct answer consistently competitive matching category role with pricing strategy: CONVENIENCE - correct answer non competitive what is the LEAST important reason for retailers to assign category roles as a part of the catman process - correct answer to determine their best choice for suppliers/category captains/vendor advisors categories playing what role are usually allocated the lowest percentage of resources by the retailer - correct answer convenience business measure - correct answer product, geography, time period 8 steps to analytical success - correct answer 1. define the business opportunity/issue 2. develop the plan 3. organize and assemble the data 4. analyze the data 5. summarize key findings 6. develop conclusions and suggested next steps 7. review the analysis and action steps with the decision maker 8 conclusion/summarize the project big data - correct answer is a combination of data sources that when used effectively reveal the cause and effect relationship between data points in order to create meaningful and actionable business insights Big Data 3 V's - correct answer velocity= speed of data volume= size of large amounts of data available variety= types of data (online) POS data can - correct answer -track financial performance -show performance of categories, segments and brands -analyze e-comm development -understand and respond to what shoppers are buying (online) web analytics data - correct answer -understand sources of traffic and how to drive more -quantify the online shopping experience -optimize site experience -drive conversion a supplier wants to highlight a listing opportunity to a retailer, but there is not market data available to benchmark them to. how can the supplier provide market or competitive insights to the retailer - correct answer provide market and channel benchmarks based on supplier shipment data, and compare them to retailer opportunities who ultimately drives all sales results for retailers an suppliers - correct answer consumers, through their purchases what is an effective way to approach a business issue - correct answer all answers correct (develop a hypotheses to dis/prove have a clear idea of what you are looking for in the data have a business issue to address before going into the data) which of these statements regarding in store observations data is MOST accurate - correct answer in store observations data gives an understanding of what is actually going on in the stores when is retail measurement data referred to as "syndicated" data - correct answer when it is rolled up to include and reflect channel and market data which data source allows for price regression and lift analysis and in depth profit, promotion and pricing analysis - correct answer retailer weekly sales data (POS) true or false? retailer POS data does not provide an external benchmark to gauge how retailers are doing vs. their key competitors, channel or total market - correct answer true what is typically the LEAST accurate/valid measure in consumer panel data - correct answer volumetric measures ($ volume, % chg) which of the following is not a proprietary data source and a manufacturer can share observations and insights across retailer - correct answer consumer panel data which data source can be misleading as it can be reflective of a one time store check of a products price, promotional activity, placement,, and availability - correct answer in store audit less developed category - correct answer index vs ACV= under 100 (closest to 100 is best) $ volume opportunity based on target share - correct answer (target share-market share)*total market $ volume growth rate ($ %chg) equation - correct answer ($volume/$volume yr ago)-1 category $ share pt chg equation - correct answer $share-$share yr ago retailer share of market equation - correct answer (retailer $ volume/market $ volume) x 100 absolute $ change equation - correct answer $ volume-$ volume yr ago category $ share equation - correct answer (brand or segment $ volume/ category $ volume) x 100 true or false? the best data measure for comparing to year ago results for a product group is growth rate (%chg vs yr ago) - correct answer FALSE. "% chg vs yr ago" does not reflect the size importance of the product group. should be supplemented with "absolute volume change: results retailer share of market for total category equation - correct answer retailer category volume/market category volume what is the most important reason for retailers to benchmark themselves against more than the channel which they compete within - correct answer it gives an external perspective of the total market that consumers are shopping in share of listings equation - correct answer (your listing/total listings in category)*100 tonnage volume/equalized volume is a measure expressed in a common unit relevant to a category that goes beyond unit sales. examples include - correct answer pounds, grams, gallons, cases which tactics typically drive traffic to a particular store - correct answer pricing and promotion consumer purchase decisions are influenced by manufacturer marketing programs, such as - correct answer print advertising share of listings by product group= - correct answer # of listings by group / total category $ volume cross merchandising - correct answer when a retailer displays high profit items with low profit destination items to drive incremental sales and profit Hi-Lo pricing - correct answer practice of setting the price go most products higher than the market rate, while offering a small number of products at below market prices through temporary price reductions, used to advertise products and draw traffic to the store on promotions EDLP - correct answer retail prices remain consistently low over a long period of time dynamic pricing - correct answer retailers are changing prices frequently using algorithms that take into account consumer demand, competitive pricing, and other external factors total potential sales= - correct answer ((dist. target-current dist.)*(current sales/current dist.))+ current sales total gross margin= - correct answer units sold x (retail price-cost) incremental sales definition - correct answer incremental volume for the product based on any in store pricing reductions, advertising, or display activity true or false? in omnichannel retailing, retailers need to track consumers as they use different channels simultaneously - correct answer true to perform a robust retail pricing analysis which of the following would be LEAST IMPORTANT in your analysis - correct answer focus on average price as the primary pricing measure since it combines everyday pricing and promoted pricing true or false? development in online sales has a direct impact on a retailers tactics - correct answer true. each of these tactics are affected as online sales grow a measure that is weighted by product units sold while on discount and product units sold when no discount was present is called - correct answer average price