eCommerce Marketing Introduction To E-Commerce Marketing 3

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)?

Accepted Answer

$20

Answer

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?

Accepted Answer

Showing ads to people who previously visited your site but did not buy

Answer

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?

Accepted Answer

Comparing two versions to see which converts better

Answer

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?

Accepted Answer

Displaying verified customer reviews and star ratings on product pages

Answer

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?

Accepted Answer

Customer lifetime value (CLV)

Answer

CLV estimates the total revenue a customer generates over their entire relationship with the business.

eCommerce Marketing Practice Test

eCommerce Marketing Practice Test

eCommerce Marketing Introduction To E-Commerce Marketing 3