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Category Management Association Certified Professional Category Manager Exam - Topic 4 Question 8 Discussion

What does the metric 'Household Penetration' measure in market-level shopper dynamics?
D) The percentage of households within a defined group or market that have purchased a specific product category within a given timeframe.
A) The average number of products purchased by each household within a specific category over a given timeframe.
B) The proportion of a household's total spending allocated to a specific product category.
C) The total revenue generated by a specific product category across all households in a market.

Category Management Association Certified Professional Category Manager Exam - Topic 4 Question 8 Discussion

Actual exam question for Category Management Association's Certified Professional Category Manager exam
Question #: 8
Topic #: 4
[All Certified Professional Category Manager Questions]

What does the metric 'Household Penetration' measure in market-level shopper dynamics?

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Suggested Answer: D

The correct answer is D.

Household penetration measures how many households bought the product, brand, category, or product group during the measured period. CMKG explains the panel-data formula as Total Number of Buying Households, or Penetration, multiplied by Spend per Buying Household equals Dollar Sales. It further explains that penetration relates to the number of households purchasing the product.

Option A describes purchase quantity or items per household, not penetration. Option B describes share of wallet or share of requirements-type spending allocation, not household penetration. Option C describes category dollar sales, not the breadth of the buyer base.

Household penetration is a reach measure. It tells whether the category is bought by many households or only by a narrow group of households.


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