CRA Fundamentals & Core Concepts 2

Question 1

Which retail metric measures the percentage of store visitors who make a purchase?

Accepted Answer

Conversion rate

Answer

Conversion rate is calculated as the number of transactions divided by the number of visitors to the store.

Question 2

In retail analytics, 'dead stock' refers to inventory that:

Accepted Answer

Has not sold within a defined period and is unlikely to sell

Answer

Dead stock (also called obsolete inventory) ties up capital and shelf space without generating revenue.

Question 3

What does the term 'planogram' refer to in retail operations?

Accepted Answer

A visual diagram specifying product placement on shelves

Answer

A planogram is a schematic drawing that details how and where products should be placed on retail shelves to maximize sales.

Question 4

The 'halo effect' in retail analytics describes a situation where:

Accepted Answer

A promoted item drives incremental sales of related non-promoted items

Answer

The halo effect occurs when promoting one product positively impacts sales of complementary or adjacent products.

Question 5

Which of the following best describes 'omnichannel retailing'?

Accepted Answer

Integrating multiple sales channels to deliver a seamless customer experience

Answer

Omnichannel retailing integrates physical stores, e-commerce, mobile, and other channels so customers experience a unified brand journey.

(CRA) Certified Retail Analyst Practice Test