Certified Professional Category Analyst (CPCA) Practice Question

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Which of the following statements regarding sales volume is NOT correct?

Volume refers to number of units sold or total dollars generated from sales.

Promoted sales are calculated as the total of all sales generated during the presence of any promotional activity.

Base sales are the short-term spike in sales due to promotion activity.

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.

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Base sales and incremental sales are estimated (calculated) numbers.

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