Certified Professional Category Analyst (CPCA) Practice Questions 2025 – All-In-One Guide to Exam Success

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What metric is typically used in market coverage analysis to determine the cutoff point?

Cumulative item count within the retailer's assortment

Cumulative item count within the comparison market

Cumulative share of sales within the comparison market

The metric commonly used in market coverage analysis to establish the cutoff point is the cumulative share of sales within the comparison market. This approach is vital because it allows analysts to assess the proportion of total market sales that a retailer captures with their assortment compared to the overall market landscape. By evaluating the cumulative sales share, analysts can identify how well the retailer's product offerings align with consumer purchasing behaviors, ensuring that the selection covers a significant portion of market demand.

Utilizing cumulative sales share helps to pinpoint areas for potential assortment expansion or reduction based on market performance. This metric is particularly effective because it provides insight into not just the volume of items carried but their actual contribution to sales, allowing for a more strategic approach to inventory management and competitive positioning within the market.

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Cumulative share of sales within the retailer's assortment

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