Fundamentals & Core Concepts Flashcards
7 cards from real CRA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamentals & Core Concepts flashcards as text
What is 'cross-merchandising' in a retail context?
Answer: Placing complementary products from different categories together to stimulate add-on purchases
Cross-merchandising groups complementary products (e.g., chips near beer) to encourage customers to purchase related items they might not have planned to buy.
Which metric represents the proportion of a category's total available market that a specific retailer captures?
Answer: Category market share
Category market share measures what percentage of total consumer spending in a product category flows to a specific retailer.
A 'loss leader' pricing strategy is designed primarily to:
Answer: Attract customers to the store with a deeply discounted item, expecting them to purchase other full-price items
Loss leaders are priced at or below cost to drive store traffic, with the expectation that customers will also buy profitable items during the same trip.
In retail financial planning, 'comp store sales' (same-store sales) growth is used to:
Answer: Evaluate organic sales performance by comparing stores open for at least one year
Comp store sales isolate the performance of existing stores to show organic growth, excluding the distorting effect of new store openings.
Which term describes the practice of a retailer charging vendors a fee for access to premium shelf or display locations?
Answer: Slotting fees
Slotting fees are charges paid by manufacturers or vendors to secure prime shelf placement, end caps, or feature displays within a retailer.
The 'bullwhip effect' in retail supply chains describes:
Answer: Demand signal distortion that causes increasingly large swings in upstream order quantities
The bullwhip effect occurs when small fluctuations in consumer demand amplify into large order variability as they move upstream through the supply chain.
When a retail analyst calculates 'weeks of supply,' they are determining:
Answer: How long the current inventory on hand will last at the current rate of sales
Weeks of supply = current inventory on hand divided by average weekly sales, indicating how long stock will last without additional replenishment.