CRA CRA Customer Analytics & Consumer Behavior 1 — Questions and Answers
Question 1: Which metric measures the percentage of shoppers who make a purchase after entering a store?
- Conversion rate (Correct answer)
- Basket size
- Foot traffic index
- Dwell time
Correct answer: Conversion rate
Conversion rate is the ratio of transactions to total store visitors, indicating how effectively traffic is turned into sales.
Question 2: What does 'shopper basket size' refer to in retail analytics?
- Physical dimensions of shopping carts
- Average number of items or dollar value per transaction (Correct answer)
- Total weekly store revenue
- Number of loyalty members
Correct answer: Average number of items or dollar value per transaction
Basket size measures the average quantity or dollar value of items a shopper purchases in a single transaction.
Question 3: A retail analyst notices a high browse-to-buy ratio online. What does this indicate?
- Strong customer loyalty
- Shoppers visit but do not complete purchases (Correct answer)
- Low product return rates
- High average order value
Correct answer: Shoppers visit but do not complete purchases
A high browse-to-buy ratio signals friction in the purchase funnel, such as price, UX issues, or lack of trust signals.
Question 4: Which customer segmentation model divides shoppers based on Recency, Frequency, and Monetary value?
- NPS segmentation
- RFM analysis (Correct answer)
- Cohort analysis
- ABC classification
Correct answer: RFM analysis
RFM analysis segments customers by how recently they purchased, how often, and how much they spend to identify high-value shoppers.
Question 5: What is 'share of wallet' in consumer behavior analysis?
- Percentage of category spending a customer gives to one retailer (Correct answer)
- Total household income spent on groceries
- Credit card penetration among loyalty members
- Coupon redemption rate
Correct answer: Percentage of category spending a customer gives to one retailer
Share of wallet measures what portion of a customer's total category spend is captured by a specific retailer versus competitors.
Question 6: In heatmap analysis of store layouts, what does a 'cold zone' represent?
- Refrigerated product sections
- Areas with very low shopper traffic or dwell time (Correct answer)
- Promotional end-caps
- High-velocity SKU locations
Correct answer: Areas with very low shopper traffic or dwell time
Cold zones are store areas that receive minimal foot traffic, signaling opportunities to reposition products or improve signage.
CRA CRA Customer Analytics & Consumer Behavior 1
Which metric measures the percentage of shoppers who make a purchase after entering a store?