Online Consumer Behavior

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Questions and Answers

In the context of online consumer behavior, which of the following represents the most nuanced differentiation between 'browse-to-buy ratio' and 'view-to-cart ratio'?

The 'browse-to-buy ratio' incorporates offline purchases influenced by online browsing, whereas the 'view-to-cart ratio' is exclusively concerned with online transactions.
The 'browse-to-buy ratio' considers all website visitors, while the 'view-to-cart ratio' focuses only on registered users.
The 'browse-to-buy ratio' accounts for repeat purchases, while the 'view-to-cart ratio' only measures first-time additions to the cart.
The 'browse-to-buy ratio' reflects the effectiveness of product presentation in leading to actual purchases, while the 'view-to-cart ratio' gauges the initial attraction of products based on their visibility. (correct)

The abandonment rate in e-commerce solely reflects a failure in the website's technical infrastructure, such as server errors during checkout, rather than consumer-related factors like unexpected shipping costs or complicated payment processes.

False (B)

Formulate a scenario where a high 'open rate' for an email marketing campaign could paradoxically correlate with a low 'click-through rate', indicating a potential flaw in the campaign's design or targeting strategy.

An email campaign targeting a broad demographic with generic product information might achieve a high open rate due to recognizable branding, but subsequently fail to generate clicks because the content lacks relevance or specific value propositions for individual recipients.

In the context of digital marketing analytics, the strategic utilization of __________ involves leveraging algorithms to discern hidden patterns and correlations within extensive datasets, thereby facilitating the anticipation of consumer predilections and the optimization of marketing endeavors.

data mining Signup and view all the answers

Match the following metrics with their corresponding descriptions within the context of evaluating online marketing communications:

Reach = Percentage of potential customers exposed to a marketing message. Recency = How recently a customer interacted with a brand or made a purchase. Stickiness = The duration a visitor spends on a website or engages with content. Conversion Rate = Proportion of visitors completing a desired action, such as a purchase. Signup and view all the answers

Which of the following scenarios best exemplifies the application of 'customer co-production' as a customer retention strategy?

An open-source project allows community developers to directly contribute code and features to the platform, influencing its evolution. (B) Signup and view all the answers

Dynamic pricing strategies are exclusively beneficial for sellers in e-commerce, as they inherently exploit fluctuations in demand to maximize profit margins, irrespective of the potential impact on consumer perceptions of fairness and value.

False (B) Signup and view all the answers

Analyze a scenario where a firm might strategically choose a 'cost per thousand (CPM)' pricing model over a 'cost per click (CPC)' model, despite the latter seemingly offering a more direct correlation to user engagement.

A firm launching a new brand or product might opt for CPM to maximize visibility and brand awareness, even if click-through rates are low, aiming to instill recognition and familiarity among a broad audience. Signup and view all the answers

Within the framework of online marketing, the strategic amalgamation of __________ entails the synergistic deployment of both digital and conventional promotional modalities to amplify market penetration and augment brand resonance.

multi-channel marketing Signup and view all the answers

Match the following technologies with their primary function in supporting online marketing efforts:

Web Transaction Logs = Records user activity on a website for behavioral analysis. Data Warehouses = Centralized repository for storing and analyzing large datasets. CRM Systems = Manages customer interactions and stores customer data. Tracking Files = Monitors user behavior across the web for targeted advertising. Signup and view all the answers

Which of the following best encapsulates the strategic rationale behind utilizing 'interest-based advertising' as a customer retention technique?

To enhance customer engagement by delivering relevant and personalized ad content based on their past online behavior. (B) Signup and view all the answers

Acquisition rate, defined as the percentage of visitors who indicate an interest in a site's product, definitively predicts long-term customer loyalty and repeat purchases, making further retention efforts redundant for this segment.

False (B) Signup and view all the answers

Devise a customer service strategy utilizing 'intelligent agents' to proactively address potential pre-purchase concerns and mitigate cart abandonment on an e-commerce platform.

Implement an intelligent agent that monitors user behavior on product pages and during the checkout process, proactively offering assistance, such as providing additional product information, clarifying shipping costs, or offering discounts, when signs of hesitation or abandonment are detected. Signup and view all the answers

In the realm of digital commerce, __________ entails the practice of delineating disparate renditions of commodities or services, typically predicated upon attributes such as functionality, capacity, or degree of customer support, thereby catering to a spectrum of consumer predilections and willingness to expend.

versioning Signup and view all the answers

Match the following online marketing strategies with their primary objective:

Lead Generation Marketing = To capture prospective customer information for future sales efforts. Affiliate Marketing = To leverage third-party websites to drive traffic and sales. Viral Marketing = To encourage customers to share marketing messages with their network. Social Marketing = To use social media to build brand image and promote sales. Signup and view all the answers

Which of the following scenarios exemplifies the most sophisticated application of 'customer profile' data within a CRM system to enhance marketing effectiveness?

Using predictive analytics to identify customers at high risk of churn and proactively offering personalized incentives. (D) Signup and view all the answers

The 'view-through rate' (VTR) provides an infallible metric for assessing the direct causal impact of display advertising on consumer behavior, definitively proving that exposure to an ad invariably leads to a purchase within 30 days.

False (B) Signup and view all the answers

Analyze the potential ethical implications of utilizing 'Flash cookies' for tracking user behavior across the web, particularly in comparison to traditional HTTP cookies, considering aspects of transparency and user control.

Flash cookies, due to their ability to store more data and their persistence even after HTTP cookies are cleared, raise ethical concerns regarding transparency and user control, as users may be unaware of their presence and unable to easily manage or delete them, potentially leading to privacy violations. Signup and view all the answers

Within the strategic framework of digital marketing, __________ marketing leverages the interconnectedness of individuals within social networks to disseminate promotional content, capitalizing on the exponential reach and credibility afforded by peer-to-peer endorsements.

viral Signup and view all the answers

Match the following pricing models for online marketing communications with their corresponding descriptions:

CPM (Cost Per Thousand) = Advertiser pays for every thousand impressions of an ad. CPC (Cost Per Click) = Advertiser pays for each click on an ad. CPA (Cost Per Action) = Advertiser pays for a specific action, such as a purchase or registration. Hybrid Models = Combination of different pricing models to optimize campaign performance. Signup and view all the answers

Flashcards

Internet Audience Key Features

Number of users online, intensity of use, demographics, connection type, and community effects.

Factors Impacting Buying Behavior

Cultural, social, and psychological factors.