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Question 9/25
The Shelf Space section of the health assessment reveals that a growing segment has a 65 Index in Dollars per Linear Feet versus the category average. What is the right insight?
Correct Answer: D
The correct answer is D .
A 65 Index in Dollars per Linear Foot means the segment is producing only 65% of the category average sales productivity per unit of shelf space . That is below the category benchmark of 100. In shelf-space analysis, dollars per linear foot is a productivity measure: it tells whether the space allocated to a segment is producing enough sales relative to the amount of shelf it occupies.
The CPCM course warns that category managers should not look at numbers in isolation; they must use benchmarks and thresholds to interpret whether business drivers are actually driving sales. The CPCM material states that category health work includes tactical analysis and that thresholds can be used to understand whether business drivers are actually driving sales across tactics.
Because the segment is below average on shelf productivity, the cleanest available insight is to reduce linear shelf space or at minimum challenge the current space allocation. Option B and C are wrong because increasing space for a segment already under-indexing on dollars per linear foot would usually worsen space productivity unless there is additional evidence such as severe out-of-stocks, strategic role, high profit, or future innovation. Option A is weaker because the metric already provides a clear directional shelf-space signal.
A 65 Index in Dollars per Linear Foot means the segment is producing only 65% of the category average sales productivity per unit of shelf space . That is below the category benchmark of 100. In shelf-space analysis, dollars per linear foot is a productivity measure: it tells whether the space allocated to a segment is producing enough sales relative to the amount of shelf it occupies.
The CPCM course warns that category managers should not look at numbers in isolation; they must use benchmarks and thresholds to interpret whether business drivers are actually driving sales. The CPCM material states that category health work includes tactical analysis and that thresholds can be used to understand whether business drivers are actually driving sales across tactics.
Because the segment is below average on shelf productivity, the cleanest available insight is to reduce linear shelf space or at minimum challenge the current space allocation. Option B and C are wrong because increasing space for a segment already under-indexing on dollars per linear foot would usually worsen space productivity unless there is additional evidence such as severe out-of-stocks, strategic role, high profit, or future innovation. Option A is weaker because the metric already provides a clear directional shelf-space signal.
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