1- Category management CPCA Practice
Exam fully solved
What are 3 business measures to be attached to any data source? - correct answer ✔✔Product,
geography, time period. All data should be cited.
Where should destination categories be placed in store and why? - correct answer ✔✔Where 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. - correct answer ✔✔Destination
What four things drive varying degrees of category management? - correct answer ✔✔Data availability,
category importance, experience, and resources.
Name three characteristics of destination roled categories. - correct answer ✔✔Highly price
sensitive/low margins, responsive to promotion, high volume/high OOS.
What has happened in the retail industry to necessitate category management? - correct answer
✔✔Increased 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. - correct answer ✔✔Everyday 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? - correct answer ✔✔No. It will vary based on channel, retailer, or even
banner.
What is category management? - correct answer ✔✔A retailer/vendor process of managing categories
as strategic business units, providing enhanced business results by focusing on consumer value.
, What are the 4Ps? - correct answer ✔✔Product assortment, product placement, pricing, and promotion.
Categories in this role are purchased impulsively and are not highly price sensitive. - correct answer
✔✔Convenience
Give four characteristics of image-building category strategies. - correct answer ✔✔Price - EDLP, for
example
Service
Quality
Assortment - high end & premium offerings
How do you determine what groups of products belong together? - correct answer ✔✔1. 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? -
correct answer ✔✔About 80%. Category management focuses on getting customers down the aisles.
Define the seasonal category role. - correct answer ✔✔A role specific to a holiday or season.
Define the convenience category role. - correct answer ✔✔Impulse buys. Consumer is already in the
store and they pick up these items.
Define the routine category role. - correct answer ✔✔A category that is shopped regularly as part of a
routine shopping pattern.
Define the destination category role. - correct answer ✔✔The category that gets customers into the
store in the first place. It is the 'signature' or 'hero' category that differentiates a retailer.
Exam fully solved
What are 3 business measures to be attached to any data source? - correct answer ✔✔Product,
geography, time period. All data should be cited.
Where should destination categories be placed in store and why? - correct answer ✔✔Where 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. - correct answer ✔✔Destination
What four things drive varying degrees of category management? - correct answer ✔✔Data availability,
category importance, experience, and resources.
Name three characteristics of destination roled categories. - correct answer ✔✔Highly price
sensitive/low margins, responsive to promotion, high volume/high OOS.
What has happened in the retail industry to necessitate category management? - correct answer
✔✔Increased 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. - correct answer ✔✔Everyday 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? - correct answer ✔✔No. It will vary based on channel, retailer, or even
banner.
What is category management? - correct answer ✔✔A retailer/vendor process of managing categories
as strategic business units, providing enhanced business results by focusing on consumer value.
, What are the 4Ps? - correct answer ✔✔Product assortment, product placement, pricing, and promotion.
Categories in this role are purchased impulsively and are not highly price sensitive. - correct answer
✔✔Convenience
Give four characteristics of image-building category strategies. - correct answer ✔✔Price - EDLP, for
example
Service
Quality
Assortment - high end & premium offerings
How do you determine what groups of products belong together? - correct answer ✔✔1. 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? -
correct answer ✔✔About 80%. Category management focuses on getting customers down the aisles.
Define the seasonal category role. - correct answer ✔✔A role specific to a holiday or season.
Define the convenience category role. - correct answer ✔✔Impulse buys. Consumer is already in the
store and they pick up these items.
Define the routine category role. - correct answer ✔✔A category that is shopped regularly as part of a
routine shopping pattern.
Define the destination category role. - correct answer ✔✔The category that gets customers into the
store in the first place. It is the 'signature' or 'hero' category that differentiates a retailer.
