Certified Professional Category Analyst (CPCA) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

To perform a pricing analysis, what is typically NOT recommended?

Measure the level of discount between promoted and non-promoted pricing

Assess a retailer's prices compared to the overall marketplace

Quantify the impact of the price change on category sales performance

Rely on average price as a more reliable measure than promoted price

Relying on average price as a more reliable measure than promoted price is typically not recommended in pricing analysis because it can obscure the real-time impacts of pricing strategies. Average prices can provide a generalized view, but they may not account for fluctuations caused by promotions, discounts, and seasonal variations that specifically impact consumer behavior and sales patterns.

Promoted prices often play a crucial role in influencing purchasing decisions and understanding market dynamics, especially during promotional events. By focusing on average pricing, one risks overlooking significant insights that can be garnered from analyzing promoted price levels, which directly affect customer engagement and sales analytics.

In the context of the other options, measuring the discount between promoted and non-promoted pricing offers valuable insights into how effective promotions are at attracting customers. Similarly, assessing a retailer's prices against the marketplace can provide competitive intelligence that informs pricing strategies. Quantifying the impact of price changes on category sales performance is essential for understanding consumer reactions and refining pricing tactics. These approaches are focused on direct metrics that can guide actionable decisions, contrasting the more generalized insights that come from solely relying on average pricing data.

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