Bcom Bachelor of Commerce Bachelor of Commerce: E-Commerce 5 — Questions and Answers
Question 1: Which e-commerce strategy involves analyzing a customer's purchase history to recommend complementary products at checkout?
- Upselling
- Cross-selling (Correct answer)
- Bundling
- Price anchoring
Correct answer: Cross-selling
Cross-selling suggests related or complementary items to what the customer is already buying, increasing order value and product discovery.
Question 2: What is the primary function of a Content Delivery Network (CDN) for e-commerce websites?
- To process and encrypt payment transactions
- To distribute website content from servers geographically closer to users, improving load speed (Correct answer)
- To generate AI-written product descriptions automatically
- To manage customer support chat workflows
Correct answer: To distribute website content from servers geographically closer to users, improving load speed
A CDN caches static assets on edge servers worldwide so users load content from a nearby node, reducing latency and improving site performance.
Question 3: Under which e-commerce revenue model does the platform earn money by displaying ads from third-party advertisers to site visitors?
- Subscription model
- Transaction fee model
- Advertising-based model (Correct answer)
- Freemium model
Correct answer: Advertising-based model
The advertising model generates revenue by selling display, sponsored, or banner ad placements to brands seeking exposure to the platform's audience.
Question 4: What is 'social commerce'?
- Using social media solely for customer service inquiries
- Buying and selling products directly within social media platforms without leaving the app (Correct answer)
- Building a social network exclusively for B2B buyers
- Sharing discount codes through affiliate influencer links
Correct answer: Buying and selling products directly within social media platforms without leaving the app
Social commerce integrates shopping features natively into platforms like Instagram, TikTok, and Pinterest, allowing users to discover and purchase without switching apps.
Question 5: In supply chain management for e-commerce, 'just-in-time (JIT) inventory' aims to:
- Stockpile large quantities of inventory to prevent stockouts
- Receive goods only as they are needed for production or sale, minimizing holding costs (Correct answer)
- Ship all orders within 24 hours of placement
- Automate reordering using AI demand forecasts
Correct answer: Receive goods only as they are needed for production or sale, minimizing holding costs
JIT inventory reduces warehousing costs and waste by synchronizing supply closely with actual demand, though it increases vulnerability to supply disruptions.
Question 6: Which legal agreement on an e-commerce website outlines how the business collects, uses, and protects user data?
- Terms of Service (ToS)
- Return Policy
- Privacy Policy (Correct answer)
- Service Level Agreement (SLA)
Correct answer: Privacy Policy
A Privacy Policy is legally required in most jurisdictions and discloses what personal data is collected, how it is used, shared, and safeguarded.
Question 7: Which e-commerce metric calculates the total revenue a business can expect from a single customer over the entire duration of their relationship?
- Average Order Value (AOV)
- Customer Acquisition Cost (CAC)
- Customer Lifetime Value (CLV) (Correct answer)
- Return on Ad Spend (ROAS)
Correct answer: Customer Lifetime Value (CLV)
CLV helps businesses determine how much to invest in acquiring and retaining customers by projecting their long-term revenue contribution.
Bcom Bachelor of Commerce Bachelor of Commerce: E-Commerce 5
Which e-commerce strategy involves analyzing a customer's purchase history to recommend complementary products at checkout?