Certified Professional Category Analyst (CPCA) Practice Question

Which statement is incorrect regarding % ACV as a weighting factor for measuring distribution?

1. Higher ACV stores typically serve more shoppers

2. % ACV levels the playing field as older stores typically have higher shopper loyalty

3. % ACV indicates how many shoppers can buy the product

4. Real on-shelf distribution is usually higher than ACV

The correct answer is: % ACV levels the playing field as older stores typically have higher shopper loyalty

The reasoning behind identifying the statement about % ACV levels the playing field because older stores typically have higher shopper loyalty as incorrect lies in the nature of ACV itself. % ACV, or percent all commodity volume, is a metric that assesses a store’s sales potential based on the total sales of all products rather than shopper loyalty or demographics. Higher shopper loyalty in older stores does not inherently make % ACV a leveling factor since % ACV does not account for the individual loyalty of consumers. Instead, it simply measures the proportion of total retail sales represented by stores that carry a given product. Thus, the impact of older stores' higher loyalty is not encapsulated in this metric, meaning the statement misrepresents the function of % ACV in evaluating distribution. The other statements correctly reflect aspects of % ACV. Higher ACV stores typically do serve more shoppers because they represent a larger sales volume, indicating more frequent customer visits. The assertion regarding % ACV indicating a greater potential for shoppers to buy the product is also accurate, as a higher % ACV suggests broader availability across high-volume retail outlets. Finally, while real on-shelf distribution can vary for several reasons, it's acknowledged that ACV can sometimes provide a more theoretical perspective on product