What can be an effect of improved decision-making in category management?

Enhanced responsiveness to market changes is an important effect of improved decision-making in category management because it allows businesses to swiftly adapt to shifts in consumer preferences, competitive dynamics, and overall market trends. When category managers make better decisions based on accurate data and insights, they can identify emerging trends and adjust their strategies accordingly. This responsiveness enables companies to capitalize on new opportunities, streamline product assortments, optimize pricing, and ensure that inventory levels align with current demand. Consequently, businesses can gain a competitive edge in the marketplace and improve their overall performance by being more agile in their category management practices.

In contrast, other outcomes such as increased staff turnover, lower customer satisfaction, and higher operational costs would typically arise from poor decision-making or misalignment within category management strategies, preventing organizations from leveraging the benefits of improved decision-making effectively.