CEC E-commerce Strategy & Planning 5

Question 1

A brand's repeat purchase rate is 15% while industry average is 40%. Which strategic initiative should the consultant recommend first?

Accepted Answer

Implement a post-purchase loyalty and retention email program

Answer

Low repeat purchase rate indicates weak post-purchase engagement; retention email sequences and loyalty programs directly address this gap.

Question 2

What does 'contribution margin' measure in e-commerce financial planning?

Accepted Answer

Revenue minus variable costs, before fixed overhead

Answer

Contribution margin isolates the per-unit or per-order profit available to cover fixed costs after accounting for variable costs like COGS and shipping.

Question 3

A consultant is advising on exit strategy options for a profitable e-commerce brand. Which buyer type typically pays the highest multiple?

Accepted Answer

Strategic acquirer in the same vertical

Answer

Strategic acquirers pay premium multiples because they can extract synergies—customer overlap, shared infrastructure, cross-sell—that financial buyers cannot.

Question 4

Which e-commerce strategy uses behavioral and demographic data to show different homepage content to different customer segments?

Accepted Answer

Personalization

Answer

Personalization dynamically adapts on-site content, product recommendations, and messaging based on individual user data to increase relevance and conversion.

Question 5

What is the strategic purpose of a competitive pricing audit in e-commerce?

Accepted Answer

To ensure prices remain competitive while protecting margin

Answer

A competitive pricing audit benchmarks your prices against rivals so you can adjust dynamically to remain attractive without unnecessarily sacrificing margin.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC E-commerce Strategy & Planning 5