What is the benefit of tracking SOW for a Retailer in a particular category?
A.
SOW concentrates on the spending habits of Shoppers who already buy from the Retailer with the goal of securing a larger portion of their budget.
B.
SOW concentrates on the spending habits of Shoppers who already buy that category in the marketplace with the goal of securing a larger portion of their budget.
C.
SOW concentrates on the spending habits of all Shoppers who haven’t bought from the Retailer with the goal of securing a larger portion of their budget.
D.
SOW concentrates on the spending habits of all Shoppers in the marketplace with the goal of securing a larger portion of their budget.
SOW means Share of Wallet . In category management, it measures how much of a shopper’s category spending is captured by a specific retailer, brand, or product compared with the shopper’s total category spending. CMKG explains this concept through shopper/consumer panel analysis: “42.8% of their total category dollars were spent on their brand,” and identifies that as the brand’s “loyalty” number or “share of wallet.”
That is why option A is correct: SOW focuses on shoppers who already buy from the retailer and helps the retailer understand whether those shoppers are giving more or less of their category budget to that retailer. The business purpose is to secure a larger portion of those shoppers’ spending.
Option B is too broad because it refers to all shoppers who buy the category in the marketplace, not specifically the retailer’s shoppers. Option C is wrong because SOW is not mainly about shoppers who have never bought from the retailer. Option D is also too broad because total marketplace shoppers are more relevant to market penetration or market share analysis, not retailer-specific share of wallet.
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