Business Services Marketing 2 — Questions and Answers
Question 1: A company tracks the number of unique visitors who complete a purchase divided by total unique visitors. What metric is this?
- Bounce rate
- Conversion rate (Correct answer)
- Click-through rate
- Retention rate
Correct answer: Conversion rate
Conversion rate measures the percentage of visitors who take a desired action, such as making a purchase.
Question 2: Which pricing strategy sets a high initial price and gradually lowers it over time?
- Penetration pricing
- Economy pricing
- Price skimming (Correct answer)
- Bundle pricing
Correct answer: Price skimming
Price skimming captures maximum revenue from early adopters before reducing the price to attract more price-sensitive customers.
Question 3: A brand publishes tutorials, blog posts, and how-to videos to attract customers. This is an example of:
- Outbound marketing
- Content marketing (Correct answer)
- Direct mail marketing
- Guerrilla marketing
Correct answer: Content marketing
Content marketing attracts and engages audiences by creating and distributing relevant, valuable content.
Question 4: In the context of marketing, what does 'share of voice' measure?
- The percentage of ad spend a brand has relative to competitors (Correct answer)
- The number of social media followers a brand has
- Customer satisfaction scores compared to industry average
- The ratio of organic to paid traffic
Correct answer: The percentage of ad spend a brand has relative to competitors
Share of voice measures a brand's advertising presence or mentions relative to the total market or competitors.
Question 5: A company sends targeted emails to customers who abandoned their shopping carts. This tactic is called:
- Cold emailing
- Drip campaigning
- Remarketing (Correct answer)
- Lead nurturing
Correct answer: Remarketing
Remarketing targets people who previously interacted with a website or app but did not convert.
Question 6: Which element of the marketing mix refers to the physical or digital locations where customers can buy a product?
- Product
- Price
- Place (Correct answer)
- Promotion
Correct answer: Place
Place (or distribution) refers to the channels and locations through which a product is made available to consumers.
Question 7: A software company offers a free basic version and charges for advanced features. This is called:
- Loss leader pricing
- Freemium model (Correct answer)
- Cost-plus pricing
- Value-based pricing
Correct answer: Freemium model
The freemium model provides a free tier to attract users and monetizes through premium upgrades.
Business Services Marketing 2
A company tracks the number of unique visitors who complete a purchase divided by total unique visitors.
What metric is this?