Ace the CPCA Challenge 2025 – Unleash Your Professional Power with Practice Questions!

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What is the correct formula for buying rate?

Buying rate = turns x total volume purchased/# buying households

The buying rate is an important metric in understanding consumer purchasing behavior. The correct formula incorporates the concept of "turns," which is a measure of how quickly inventory sells within a specific period. In this context, the buying rate is determined by multiplying the turns by the total volume purchased, and then dividing by the number of buying households.

This means you're essentially calculating how frequently, on average, households purchase products over a certain timeframe and how that relates to the overall volume sold. By focusing on the total volume purchased rather than just promotional volume or purchase frequency, you obtain a more comprehensive view of buying behavior across all households involved.

The other choices either misinterpret how to use the turns factor or don't appropriately account for the number of buying households, which is critical for a representative measure of the buying rate. Therefore, the rationale for the correct choice considers the need for a holistic assessment of purchasing activity among households.

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Buying rate = turns x promoted volume/# buying households

Buying rate = turns x total volume purchased/purchase frequency

Buying rate = turns x purchase frequency

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