Which performance indicator could be used to assess product popularity?

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Prepare for the Performance Indicators Retail Merch Tier 3 Test. Use interactive quizzes and detailed explanations to boost your understanding. Ace your exam!

The choice of stock turnover as a performance indicator for assessing product popularity is fitting because it directly reflects how quickly a product sells relative to its inventory levels. A higher stock turnover rate indicates that products are being sold quickly, which typically suggests strong consumer demand and popularity. This metric provides insight into which items are being favored by customers and are moving off shelves at a rapid pace.

In contrast, employee satisfaction ratings focus on the internal environment and employee engagement rather than consumer behavior. Average transaction value measures the amount spent by customers during their purchases but does not directly indicate how popular individual products are, as it could vary due to different purchasing behavior among customers. Store foot traffic captures the number of customers entering a store, yet it doesn’t specify which products are attracting interest or being purchased, making it less reliable for evaluating product popularity specifically.

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