Mixed Deck — All CMA Topics Flashcards

A company runs a campaign where customers receive a coupon redeemable at point of purchase. This is an example of:

Answer: Sales promotion

Sales promotions include short-term incentives like coupons, discounts, and rebates designed to stimulate immediate purchase behavior.

What does the term 'crowding out' refer to in macroeconomics?

Answer: Government borrowing raising interest rates and reducing private investment

Crowding out occurs when government deficit spending increases demand for loanable funds, raising interest rates and displacing private sector investment.

Cost per thousand (CPM) is calculated as:

Answer: (Total cost / Total impressions) × 1,000

CPM = (Total cost ÷ Total impressions) × 1,000; it measures the cost to reach 1,000 audience members and is a standard media efficiency metric.

Which framework divides a market into four quadrants based on market growth rate and relative market share?

Answer: BCG Growth-Share Matrix

The BCG Growth-Share Matrix, developed by Boston Consulting Group, categorizes business units into Stars, Cash Cows, Question Marks, and Dogs based on growth rate and market share.

What does the term 'competitive moat' refer to in market analysis?

Answer: A sustainable competitive advantage that protects a company from rivals

A competitive moat, popularized by Warren Buffett, is a durable competitive advantage—such as brand, network effects, or cost advantages—that protects a company's market position.

Which of the following trends BEST describes the post-pandemic consumer shift toward local and independent businesses?

Answer: Localism and community commerce

Localism reflects consumers' renewed interest in supporting neighborhood businesses, driven by community identity and supply chain disruption awareness.

In the context of product-market fit, what does the 'Sean Ellis test' measure?

Answer: The percentage of users who would be 'very disappointed' if a product disappeared, with 40%+ indicating product-market fit

Sean Ellis's test asks users how disappointed they'd feel if the product vanished; if 40%+ say 'very disappointed,' the product has achieved product-market fit.

Which of the following best describes 'stagflation' and its challenge for monetary policymakers?

Answer: Simultaneous high inflation and high unemployment, making standard policy tools ineffective

Stagflation combines high inflation and high unemployment — raising rates to fight inflation worsens unemployment, while cutting rates to boost employment worsens inflation.

How does consumer behavior analysis help businesses?

Answer: It helps businesses develop products and strategies that align with consumer preferences

Consumer behavior analysis is vital for businesses because it provides insights into what drives customer choices. By understanding consumer preferences, needs, and buying patterns, companies can develop products that truly meet market demand. This analysis also enables businesses to craft effective marketing strategies, optimize pricing, and improve customer satisfaction, ultimately leading to increased sales and market share.

A analyst runs a cross-tabulation and applies a chi-square test. What is the chi-square test used to evaluate?

Answer: Whether there is a statistically significant association between two categorical variables

The chi-square test of independence determines if there is a significant relationship between two categorical variables in a contingency table.

A researcher wants to understand why customers churn after the first purchase. Which qualitative method would provide the deepest individual insights?

Answer: In-depth interview

In-depth interviews allow one-on-one probing that reveals personal motivations and nuanced reasons for churn.

The 'jobs-to-be-done' (JTBD) framework approaches product development by focusing on:

Answer: Understanding the underlying tasks or goals customers are trying to accomplish, rather than product features

JTBD theory, popularized by Clayton Christensen, posits that customers 'hire' products to accomplish specific jobs or goals, so innovation should address those underlying needs.

What does 'CTR' stand for in digital marketing, and how is it calculated?

Answer: Click-Through Rate; clicks divided by impressions, expressed as a percentage

Click-Through Rate (CTR) measures the percentage of people who clicked on an ad or link after seeing it, calculated as (Clicks ÷ Impressions) × 100.

A company's email campaign has 10,000 recipients, 8,500 delivered, 2,500 opens, and 300 clicks. What is the open rate?

Answer: 29.4%

Open rate = Opens ÷ Delivered emails = 2,500 ÷ 8,500 = 29.4%, measuring the percentage of successfully delivered emails that were opened.

What distinguishes 'owned' media from 'paid' and 'earned' media in a digital marketing context?

Answer: Owned media is channels the company controls (website, email, app); paid is purchased advertising; earned is organic coverage by others

The PESO model divides media into Paid (ads), Earned (press, word-of-mouth), Shared (social), and Owned (brand-controlled channels); owned media includes websites, blogs, and email lists.

What is statistical forecasting?

Answer: Using mathematical models to predict future outcomes based on historical data

Statistical forecasting involves using mathematical models and historical data to predict future outcomes. This method relies on identifying patterns, trends, and relationships within past data to make informed projections. It provides a systematic and objective approach to anticipating future market conditions, sales, or other relevant business metrics, reducing reliance on intuition alone.

Which digital marketing channel delivers the highest average return on investment (ROI) according to most US marketing studies?

Answer: Email marketing

Email marketing consistently ranks as the highest ROI digital channel, with studies showing returns of $36–$42 per $1 spent, due to its low cost and high targeting precision.

Which of the following is an example of 'showrooming' behavior?

Answer: Buying online after seeing a product in-store

Showrooming occurs when consumers examine products in a physical store but ultimately purchase them online, often at a lower price.

What is the importance of understanding consumer trends?

Answer: To predict future consumer behavior and design strategies accordingly

Understanding consumer trends is vital for businesses because it allows them to anticipate future consumer behavior and design strategies accordingly. By identifying shifts in preferences, emerging needs, and evolving purchasing habits, companies can proactively adapt their product development, marketing messages, and business models. This foresight helps maintain relevance, gain a competitive advantage, and ensure long-term success in a dynamic market.

Which of the following describes 'data triangulation' in market research?

Answer: Cross-validating findings using multiple data sources or methods

Triangulation increases research validity by confirming findings through convergence of multiple independent data sources or methods.