Certified Professional Category Analyst (CPCA) Practice Question

What does it mean for a product to be considered incremental?

1. A product adds variety of choice relative to other existing products

2. A product gradually increases its sales velocity over time

3. A product indexes higher on ROI vs sales velocity

4. A product can be substituted for other products

The correct answer is: A product adds variety of choice relative to other existing products

The correct understanding of what it means for a product to be considered incremental is that it adds variety of choice relative to other existing products. This implies that the product creates additional options for consumers, which can enhance the overall market offering without necessarily replacing existing products. In this context, the term "incremental" refers to the incremental benefits provided to consumers as a result of having more choices available to them. Focusing on the concept of variety, an incremental product can help cater to diverse consumer preferences or needs that may not have been fully addressed by existing products. This can lead to increased customer satisfaction and loyalty, as consumers feel they have more tailored options that better fit their individual desires. Other choices may imply different aspects of product strategy or performance, such as the gradual increase in sales velocity or comparisons in return on investment, but these do not encapsulate the essence of what makes a product incremental in the sense of expanding consumer choice. Therefore, the core characteristic of an incremental product is its capacity to enrich the market's variety of offerings, making it easier for consumers to find something that specifically meets their needs.