CPCA Practice Exam questions with complete
solutions
Why is "channel blurring" occurring in the retail industry? - correct answer ✔✔All of these are correct.
Channel blurring is occurring because of many changes in the retail industry - all of the traditional
channel rules are being broken!
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.
Which of the following best describes three in-store retail factors affected by SKU proliferation? - correct
answer ✔✔Variety, placement, and space.
True or False? Retail channels like Grocery and Mass are not affected in difficult economic times because
consumers still buy the same products. - correct answer ✔✔False. Consumers will buy less in difficult
economic times which affects retail sales.
What does DOS refer to in category management? - correct answer ✔✔Days of Supply. A measure that
indicates the number of days that an inventory of a product will last and is usually based on previous
sales.
Which of the following pricing strategies is Walmart's primary go to market approach? - correct answer
✔✔EDLP
Match these common category management terms to the correct definition:
1. Shopper
2. Incremental Sales
3. Facing
4. Baseline Sales
5. Consumer - correct answer ✔✔1. The person who buys the product.
2. Additional sales beyond what is normally expected, due to promotional activity.
, 3. The count of front facings a single product occupies.
4. Product sales that would occur in the absence of any promotion.
5. The end user of a product.
Which one of these statements best represents an attribute of a club store? - correct answer ✔✔Club
stores tend to have lower operating expenses and less overhead so prices are generally lower.
When looking at channel dynamics which one of these statements best describes the grocery channel? -
correct answer ✔✔Grocery stores typically have higher operating expenses than other channels,
resulting in lower margins and/or higher prices than other channels.
Category Management should be practiced in which of the following retail channels? - correct answer
✔✔All of these are correct.
Which is LEAST likely a characteristic of a category white a convenience role? - correct answer
✔✔Significant private label presence. There's usually less private label presence in categories assigned a
convenience role, driven by limited assortment in these categories.
What is a category? - correct answer ✔✔A distinctly measurable and manageable grouping of products
that are interrelated and substitutable.
Which of the following gives the BEST examples of outcomes from catman that can positively impact
retailer performance? - correct answer ✔✔Effective space management, improved shopper
understanding, improved pricing & promotional plans.
Which of the following is LEAST likely to be a key data source or analytic technique used in category
management? - correct answer ✔✔Advertising spending ratio.
How many steps are in the original Category Management Process published by the ECR sub-committee
in the United States? - correct answer ✔✔8
Which of the following is LEAST likely to be a part of a typical retailer's responsibilities in the category
management process? - correct answer ✔✔Product development research
solutions
Why is "channel blurring" occurring in the retail industry? - correct answer ✔✔All of these are correct.
Channel blurring is occurring because of many changes in the retail industry - all of the traditional
channel rules are being broken!
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.
Which of the following best describes three in-store retail factors affected by SKU proliferation? - correct
answer ✔✔Variety, placement, and space.
True or False? Retail channels like Grocery and Mass are not affected in difficult economic times because
consumers still buy the same products. - correct answer ✔✔False. Consumers will buy less in difficult
economic times which affects retail sales.
What does DOS refer to in category management? - correct answer ✔✔Days of Supply. A measure that
indicates the number of days that an inventory of a product will last and is usually based on previous
sales.
Which of the following pricing strategies is Walmart's primary go to market approach? - correct answer
✔✔EDLP
Match these common category management terms to the correct definition:
1. Shopper
2. Incremental Sales
3. Facing
4. Baseline Sales
5. Consumer - correct answer ✔✔1. The person who buys the product.
2. Additional sales beyond what is normally expected, due to promotional activity.
, 3. The count of front facings a single product occupies.
4. Product sales that would occur in the absence of any promotion.
5. The end user of a product.
Which one of these statements best represents an attribute of a club store? - correct answer ✔✔Club
stores tend to have lower operating expenses and less overhead so prices are generally lower.
When looking at channel dynamics which one of these statements best describes the grocery channel? -
correct answer ✔✔Grocery stores typically have higher operating expenses than other channels,
resulting in lower margins and/or higher prices than other channels.
Category Management should be practiced in which of the following retail channels? - correct answer
✔✔All of these are correct.
Which is LEAST likely a characteristic of a category white a convenience role? - correct answer
✔✔Significant private label presence. There's usually less private label presence in categories assigned a
convenience role, driven by limited assortment in these categories.
What is a category? - correct answer ✔✔A distinctly measurable and manageable grouping of products
that are interrelated and substitutable.
Which of the following gives the BEST examples of outcomes from catman that can positively impact
retailer performance? - correct answer ✔✔Effective space management, improved shopper
understanding, improved pricing & promotional plans.
Which of the following is LEAST likely to be a key data source or analytic technique used in category
management? - correct answer ✔✔Advertising spending ratio.
How many steps are in the original Category Management Process published by the ECR sub-committee
in the United States? - correct answer ✔✔8
Which of the following is LEAST likely to be a part of a typical retailer's responsibilities in the category
management process? - correct answer ✔✔Product development research
