eCommerce Marketing Introduction To E-Commerce Marketing 3 — Questions and Answers
Question 1: An online store spends $5,000 on ads in a month and acquires 250 new customers from them. What is its customer acquisition cost (CAC)?
- $50
- $12.50
- $20 (Correct answer)
- $200
Correct answer: $20
CAC equals total acquisition spend divided by new customers acquired: $5,000 / 250 = $20.
Question 2: Which practice best describes 'retargeting' in e-commerce advertising?
- Showing ads to people who previously visited your site but did not buy (Correct answer)
- Sending free samples to new customers
- Rewriting product titles for better search rankings
- Switching your ads to a different demographic each week
Correct answer: Showing ads to people who previously visited your site but did not buy
Retargeting uses tracking data to serve ads to past visitors, encouraging them to return and complete a purchase.
Question 3: What is the primary purpose of A/B testing a product landing page?
- Verifying the site works in two browsers
- Splitting inventory between two warehouses
- Comparing two versions to see which converts better (Correct answer)
- Checking the page for broken links
Correct answer: Comparing two versions to see which converts better
A/B testing shows different versions to separate visitor groups and measures which one drives more conversions.
Question 4: Which scenario illustrates 'social proof' being used to increase e-commerce conversions?
- Reducing the number of checkout steps
- Offering free shipping over a minimum order
- Adding a live chat support widget
- Displaying verified customer reviews and star ratings on product pages (Correct answer)
Correct answer: Displaying verified customer reviews and star ratings on product pages
Social proof leverages other buyers' positive experiences to build trust with new shoppers.
Question 5: A subscription box company earns $30 per month from a typical customer who stays subscribed for 20 months. Which metric does the resulting $600 represent?
- Gross merchandise volume (GMV)
- Conversion rate
- Return on ad spend (ROAS)
- Customer lifetime value (CLV) (Correct answer)
Correct answer: Customer lifetime value (CLV)
CLV estimates the total revenue a customer generates over their entire relationship with the business.
Question 6: What distinguishes SEO from paid search advertising for an online store?
- Paid search is free for e-commerce sites
- SEO guarantees the top position, while paid search does not
- SEO earns unpaid rankings through site and content optimization, while paid search buys ad placements (Correct answer)
- SEO only works on social media platforms
Correct answer: SEO earns unpaid rankings through site and content optimization, while paid search buys ad placements
SEO improves organic visibility over time without per-click fees, whereas paid search delivers immediate placement in exchange for ad spend.
Question 7: Which email type is specifically triggered by a shopper's behavior rather than sent on a fixed schedule?
- A quarterly catalog announcement
- An annual holiday greeting
- A monthly company newsletter
- An abandoned cart reminder email (Correct answer)
Correct answer: An abandoned cart reminder email
Abandoned cart emails are behavioral triggers sent automatically when a shopper leaves items unpurchased.
eCommerce Marketing Introduction To E-Commerce Marketing 3
An online store spends $5,000 on ads in a month and acquires 250 new customers from them.
What is its customer acquisition cost (CAC)?