E-commerce Strategy & Planning Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 E-commerce Strategy & Planning flashcards as text
A brand's repeat purchase rate is 15% while industry average is 40%. Which strategic initiative should the consultant recommend first?
Answer: Implement a post-purchase loyalty and retention email program
Low repeat purchase rate indicates weak post-purchase engagement; retention email sequences and loyalty programs directly address this gap.
What does 'contribution margin' measure in e-commerce financial planning?
Answer: Revenue minus variable costs, before fixed overhead
Contribution margin isolates the per-unit or per-order profit available to cover fixed costs after accounting for variable costs like COGS and shipping.
A consultant is advising on exit strategy options for a profitable e-commerce brand. Which buyer type typically pays the highest multiple?
Answer: Strategic acquirer in the same vertical
Strategic acquirers pay premium multiples because they can extract synergies—customer overlap, shared infrastructure, cross-sell—that financial buyers cannot.
Which e-commerce strategy uses behavioral and demographic data to show different homepage content to different customer segments?
Answer: Personalization
Personalization dynamically adapts on-site content, product recommendations, and messaging based on individual user data to increase relevance and conversion.
What is the strategic purpose of a competitive pricing audit in e-commerce?
Answer: To ensure prices remain competitive while protecting margin
A competitive pricing audit benchmarks your prices against rivals so you can adjust dynamically to remain attractive without unnecessarily sacrificing margin.
An e-commerce brand has a 70% cart abandonment rate. Which tactic has the most proven impact on recovering these lost sales?
Answer: Sending an automated cart abandonment email sequence
Automated cart abandonment emails recover an average of 5–15% of abandoned carts and are consistently among the highest-ROI retention tactics.
Porter's Five Forces framework is used in e-commerce strategy primarily to:
Answer: Assess the competitive intensity and attractiveness of a market
Porter's Five Forces evaluates supplier power, buyer power, competitive rivalry, threat of substitutes, and new entrant barriers to gauge market profitability.