CRA Retail Strategic Analysis 3

Question 1

A retailer's 'assortment breadth' refers to:

Accepted Answer

The total number of distinct product categories offered

Answer

Assortment breadth measures the variety of different product categories a retailer carries, while depth refers to options within a category.

Question 2

Which strategic framework evaluates industry attractiveness by analyzing suppliers, buyers, substitutes, new entrants, and rivalry?

Accepted Answer

Porter's Five Forces

Answer

Porter's Five Forces assesses competitive intensity and profitability potential through five structural forces shaping an industry.

Question 3

A retailer pursuing an 'everyday low price' (EDLP) strategy would most likely report:

Accepted Answer

Stable sales with lower average promotional costs

Answer

EDLP produces consistent sales flow and reduces advertising and markdown costs compared to high-low promotional strategies.

Question 4

In the Ansoff Growth Matrix, selling existing products to new customer segments is called:

Accepted Answer

Market development

Answer

Market development involves expanding into new markets or customer segments with the retailer's current product offerings.

Question 5

Which of the following is a leading indicator of future retail sales performance?

Accepted Answer

Consumer confidence index

Answer

The consumer confidence index reflects shoppers' spending intentions and is a forward-looking predictor of retail sales trends.

(CRA) Certified Retail Analyst Practice Test