CMC Marketing Analytics & Data-Driven Decision Making 1 — Questions and Answers
Question 1: A marketing consultant wants to measure the incremental revenue generated for every dollar spent on a campaign. Which metric best captures this?
- Return on Marketing Investment (ROMI) (Correct answer)
- Customer Lifetime Value (CLV)
- Cost Per Acquisition (CPA)
- Net Promoter Score (NPS)
Correct answer: Return on Marketing Investment (ROMI)
ROMI measures the incremental revenue (or profit) attributable to marketing divided by the marketing cost, directly capturing efficiency of spend.
Question 2: Which statistical technique is most appropriate for predicting a continuous outcome variable (e.g., monthly sales) from multiple independent variables?
- Chi-square test
- Multiple linear regression (Correct answer)
- Cluster analysis
- Factor analysis
Correct answer: Multiple linear regression
Multiple linear regression models the relationship between a continuous dependent variable and two or more independent predictors, making it ideal for sales forecasting.
Question 3: A/B testing in digital marketing is best described as:
- Comparing two different target audience segments over six months
- Simultaneously exposing two groups to different versions of a variable to identify which performs better (Correct answer)
- Testing a product in two geographically distinct markets sequentially
- Analyzing before-and-after data from a single campaign change
Correct answer: Simultaneously exposing two groups to different versions of a variable to identify which performs better
A/B testing (split testing) randomly assigns users to control (A) and variant (B) conditions simultaneously, isolating the effect of a single change.
Question 4: In marketing analytics, what does 'attribution modeling' primarily help a consultant determine?
- The total cost of a marketing campaign
- Which touchpoints in the customer journey receive credit for a conversion (Correct answer)
- How to segment a customer database by demographics
- The optimal frequency of ad impressions per user
Correct answer: Which touchpoints in the customer journey receive credit for a conversion
Attribution modeling assigns conversion credit across multiple touchpoints, helping marketers understand which channels and interactions drive results.
Question 5: A data set contains customer purchase amounts that are highly right-skewed due to a few very large orders. Which measure of central tendency should a consultant use to best represent the typical customer purchase?
- Mean
- Median (Correct answer)
- Mode
- Range
Correct answer: Median
The median is resistant to extreme values (outliers), making it a better representation of the typical purchase amount in a skewed distribution.
Question 6: Which type of data analytics focuses on understanding why something happened by examining patterns and relationships in historical data?
- Descriptive analytics
- Diagnostic analytics (Correct answer)
- Predictive analytics
- Prescriptive analytics
Correct answer: Diagnostic analytics
Diagnostic analytics goes beyond describing what happened to identify the causes and contributing factors using root-cause and drill-down analysis.
Question 7: A marketing consultant segments customers into groups based on their purchase Recency, Frequency, and Monetary value. This framework is known as:
- SWOT analysis
- RFM analysis (Correct answer)
- STP framework
- PESO model
Correct answer: RFM analysis
RFM (Recency, Frequency, Monetary) analysis ranks customers on three behavioral dimensions to identify high-value segments and tailor marketing efforts.
CMC Marketing Analytics & Data-Driven Decision Making 1
A marketing consultant wants to measure the incremental revenue generated for every dollar spent on a campaign.
Which metric best captures this?