Certified Professional Category Analyst (CPCA) Practice Question

The statement regarding base sales being described as a short-term spike in sales due to promotional activity is not correct. Base sales refer to the standard sales level that would occur without any promotional activities. They represent the ongoing or regular sales that a product achieves over time under normal conditions.

In contrast, incremental sales are the additional sales generated as a result of promotional activities or events. This means that while promoted sales do increase overall volume temporarily, base sales remain consistent, reflecting typical consumer behavior without promotions.

Promoted sales, as mentioned in another statement, accurately captures total sales during promotions, while base sales and incremental sales provide valuable insights for understanding the effectiveness of marketing strategies and promotions. Thus, distinguishing between these concepts is crucial for analyzing sales performance and making informed business decisions.