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Average Retail Price (ARP)
Definition
The average price paid by shoppers at retail for a product, brand, or category over a defined period. ARP reflects the combined effect of regular pricing, promotions, and discounts at the point of sale.
How It's Calculated
Total retail sales dollars ÷ Total units sold
Example
A cereal brand reports an ARP of $4.49 during a four-week period, reflecting both full-price purchases and temporary price reductions across grocery and mass retailers.
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