CMC Marketing Analytics & Data-Driven Decision Making 2 — Questions and Answers
Question 1: A marketing consultant notices that web traffic increases whenever TV ads air, but cannot establish a direct cause-and-effect relationship. This limitation is best described as:
- Sampling bias
- Correlation without causation (Correct answer)
- Selection effect
- Multicollinearity
Correct answer: Correlation without causation
Correlation indicates that two variables move together, but without controlled experimentation it does not prove that one causes the other.
Question 2: Which dashboard metric indicates what percentage of website visitors complete a desired action (e.g., form submission or purchase)?
- Bounce rate
- Conversion rate (Correct answer)
- Click-through rate (CTR)
- Session duration
Correct answer: Conversion rate
Conversion rate is calculated as (conversions / total visitors) × 100, directly measuring how effectively a site turns visitors into action-takers.
Question 3: When building a customer lifetime value (CLV) model, which factor is NOT typically included?
- Average purchase value
- Purchase frequency
- Customer acquisition cost
- Competitor's advertising spend (Correct answer)
Correct answer: Competitor's advertising spend
CLV is calculated from a company's own customer data (purchase value, frequency, retention rate, and acquisition cost), not competitor behavior.
Question 4: In the context of marketing mix modeling (MMM), what is the primary purpose of the model?
- To design the visual elements of marketing creative
- To quantify the impact of each marketing channel on sales while controlling for external factors (Correct answer)
- To create audience personas from qualitative research
- To schedule social media posts for optimal engagement
Correct answer: To quantify the impact of each marketing channel on sales while controlling for external factors
MMM uses statistical regression to isolate and measure the sales contribution of each marketing channel, accounting for seasonality, pricing, and other external variables.
Question 5: A consultant is evaluating whether a new loyalty program significantly increased average order value. Which statistical test is most appropriate if the data is normally distributed?
- Chi-square test
- Mann-Whitney U test
- Independent samples t-test (Correct answer)
- Spearman correlation
Correct answer: Independent samples t-test
An independent samples t-test compares the means of two groups (before/after or control/treatment) when data is continuous and normally distributed.
Question 6: Which of the following best describes 'data governance' in a marketing analytics context?
- The process of visualizing marketing data in dashboards
- Policies and processes that ensure data quality, security, and compliance (Correct answer)
- Selecting the right KPIs for a marketing campaign
- Training machine learning models on customer data
Correct answer: Policies and processes that ensure data quality, security, and compliance
Data governance encompasses the policies, standards, and processes that manage data quality, access controls, privacy compliance, and accountability across an organization.
Question 7: A heatmap tool on a landing page shows most users never scroll below the fold. What is the most data-driven recommendation a consultant should make?
- Increase the page's word count to add more content
- Move the primary call-to-action (CTA) above the fold (Correct answer)
- Add more images below the fold to encourage scrolling
- Reduce the page's loading speed
Correct answer: Move the primary call-to-action (CTA) above the fold
If users don't scroll, critical conversion elements below the fold are missed; relocating the CTA above the fold maximizes its visibility to the majority of visitors.
CMC Marketing Analytics & Data-Driven Decision Making 2
A marketing consultant notices that web traffic increases whenever TV ads air, but cannot establish a direct cause-and-effect relationship.
This limitation is best described as: