CEC CEC Product Management & Merchandising 2

Question 1

What is 'cross-selling' in e-commerce merchandising?

Accepted Answer

Recommending complementary products relevant to what the customer is buying

Answer

Cross-selling recommends complementary products (e.g., 'You may also need…') to increase average order value by encouraging customers to add related items to their cart.

Question 2

What distinguishes 'upselling' from 'cross-selling' in e-commerce?

Accepted Answer

Upselling recommends a premium version of the same product; cross-selling recommends different complementary products

Answer

Upselling encourages customers to upgrade to a higher-value version of the product they're considering, while cross-selling suggests different complementary products.

Question 3

What is a 'Product Information Management' (PIM) system used for in e-commerce?

Accepted Answer

To centrally store, manage, and distribute product data across multiple sales channels

Answer

A PIM system centralizes product data (descriptions, images, specs, pricing) and distributes consistent, accurate information across websites, marketplaces, and other sales channels.

Question 4

Which pricing strategy involves setting a low initial product price to capture market share, then gradually increasing it?

Accepted Answer

Penetration pricing

Answer

Penetration pricing uses a low entry price to quickly gain market share and customer adoption, with the intent to raise prices once a customer base is established.

Question 5

What is 'dynamic pricing' in e-commerce and which industry pioneered its use online?

Accepted Answer

Real-time price adjustments based on demand, competition, and inventory; airlines/travel

Answer

Dynamic pricing automatically adjusts product prices in real-time based on factors like demand, competitor prices, and inventory levels — a strategy pioneered by airlines and now widely used in e-commerce.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC CEC Product Management & Merchandising 2