CRA CRA Merchandising & Category Management 2

Question 1

What is a 'private label' product in retail?

Accepted Answer

A product manufactured for and sold exclusively under the retailer's own brand

Answer

Private label (store brand) products are manufactured by a third party but sold under the retailer's own brand, typically at higher margin.

Question 2

Which step in the category management process involves assessing the category's role within the overall store strategy?

Accepted Answer

Category role assessment

Answer

Category role assessment determines whether a category serves as a destination, routine, seasonal, or convenience category within the retailer's overall strategy.

Question 3

What metric measures the revenue generated per linear foot of shelf space?

Accepted Answer

Sales per linear foot

Answer

Sales per linear foot measures how productively each foot of shelf space is contributing to revenue, guiding space allocation decisions.

Question 4

In a retail price ladder strategy, what is the purpose of a 'good-better-best' assortment?

Accepted Answer

To offer tiered product options that trade consumers up toward higher-margin items

Answer

Good-better-best tiering provides entry, mid, and premium options, encouraging shoppers to trade up to higher-margin tiers while capturing all price-sensitivity levels.

Question 5

What is 'cross-merchandising' in retail store layout?

Accepted Answer

Displaying complementary products together to encourage add-on purchases

Answer

Cross-merchandising groups complementary items across categories to prompt impulse purchases and increase basket size.

(CRA) Certified Retail Analyst Practice Test

(CRA) Certified Retail Analyst Practice Test

CRA CRA Merchandising & Category Management 2