Question 1

Maximizing traffic will always lead to maximum profit.

Accepted Answer

Maximizing traffic does not always lead to maximum profit. While more traffic can increase the potential for profit, it also increases expenses such as server costs, ad spend, and customer support. Additionally, not all traffic may lead to profitable actions such as sales or conversions. It is important to focus on targeted traffic and converting that traffic to customers in order to achieve maximum profit.

Question 2

A visit is a collection of webpages viewed by a single user during a period of time on a website - usually 30 minutes.

Accepted Answer

This statement is true. A visit on a website is a collection of webpages viewed by a single user within a specified period of time, which is typically 30 minutes.

Question 3

A _____ is a website where materials can be posted and edited by a group of interested participants.
A) wiki
B) blog
C) cloud
D) data mart
E) log file

Accepted Answer

A wiki is specifically designed for collaborative editing and publishing of web content. It allows multiple participants to create, edit, and review content. It is not a blog, which is typically authored by one person and may allow comments from readers. Cloud and data mart are not relevant to this definition, and a log file is a record of computer activity and not a collaborative platform.

Question 4

Multi-dimensional scorecards can be created externally using approaches such as the balanced scorecard.

Accepted Answer

The answer of Multi-dimensional scorecards can be created externally using...

Question 5

Which of the following statements about metrics is true?
A) All categories of measurement are well understood and universally accepted.
B) The popular metric of today may not be used tomorrow.
C) The cost of using metrics is very low.
D) Metrics are objective and therefore always reliable.
E) none of the above

Accepted Answer

The popularity of metrics can change over time, so what is considered important today may not be relevant tomorrow. The other answer choices are false.

Question 6

The conversion of traffic into customers represents a metric best suited for online businesses that only sell goods.

Accepted Answer

The conversion of traffic into customers is a metric that can be valuable for any type of online business, including those that provide services or sell digital products.

Question 7

Which of the following terms represents the proportion of click-throughs that actually result in the purchase of goods or services?
A) click-through rate
B) conversion rate
C) click-stream rate
D) click-wrap rate
E) eprocurement rate

Accepted Answer

The conversion rate represents the proportion of click-throughs that actually result in the purchase of goods or services. The other options are not related to measuring sales or purchases.

Question 8

Site usage metrics help an ebusiness assess the effectiveness of its ecommerce website.

Accepted Answer

Site usage metrics provide valuable insights into how users interact with a website, such as the number of visitors, pages viewed, time spent on site, bounce rate, conversion rate, and more. These metrics can help an ebusiness identify areas for improvement and measure the success of its ecommerce strategies.

Question 9

Metrics can help an entity do which of the following?
A) better target promotions
B) up-sell and cross-sell
C) better manage price points
D) provide guidance to personnel
E) all of the above

Accepted Answer

Metrics can help an entity in all of the mentioned ways. By analyzing metrics such as customer behavior, purchase history, and inventory levels, businesses can make informed decisions about targeting promotions, up-selling and cross-selling, managing price points, and providing guidance to personnel.

Question 10

Management and measurement are conflicting concepts.

Accepted Answer

Management and measurement are not necessarily conflicting concepts. In fact, measurement is often an important part of effective management, as it allows managers to assess progress, identify areas for improvement, and make data-driven decisions. However, there may be times when an overemphasis on measurement can lead to neglect of other important aspects of management such as building relationships, fostering creativity, and promoting employee engagement. Therefore, while management and measurement are not inherently in conflict, finding the right balance between them can be a challenge.

Question 11

The following are all related marketing metrics except:
A) click-through rate.
B) pay-per-view
C) pay-per-action
D) pay-per-call
E) pay-per-click

Accepted Answer

Pay-per-view is not a marketing metric. It refers to a payment model in which advertisers pay for the number of times their ad is displayed on a website or app, regardless of whether the user interacts with it. The other options are all commonly used marketing metrics to measure the effectiveness and ROI of online advertising campaigns.

Question 12

Maximizing revenues is not the same as maximizing traffic.

Accepted Answer

Maximizing revenues involves focusing on generating more revenue per user through methods like upselling, advertising, and premium content, while maximizing traffic involves increasing the number of users or pageviews without necessarily increasing revenue per user. These two goals may require different strategies and tactics.

Question 13

During the dot-com bubble, investors focused on financial metrics like return on investment (ROI) when assessing ecommerce sites.

Accepted Answer

During the dot-com bubble, investors often overlooked traditional financial metrics like ROI, focusing instead on growth potential, user acquisition, and market share.

Question 14

Metrics have limitations including all of the following except:
A) subject to faulty analysis and interpretation
B) vulnerable to tampering by both internal and external parties
C) usefulness decreases with rapid strategic change
D) cannot be used to improve internal processes
E) all of the above

Accepted Answer

Metrics can be used to identify areas of improvement and optimize internal processes. Therefore, option D is incorrect. The other options are all limitations or potential issues with metrics.

Question 15

Which of the following statements about performance metrics is false?
A) Metrics should be linked to specific company objectives.
B) You can never have too many metrics.
C) Metrics must be synchronized with business realities.
D) Metrics should be unambiguous.
E) Metrics should involve a reasonable cost.

Accepted Answer

Having too many metrics can cause confusion and make it difficult to focus on the most important ones. It is important to have a manageable number of metrics that are relevant to the company's objectives and can provide meaningful insights.

Question 16

Which of the following metrics could be used to achieve the objective of cost reduction?
A) number of customer support minutes per visitor
B) revenue per hour
C) hits per year
D) hits per month
E) all of the above

Accepted Answer

The number of customer support minutes per visitor is a metric that can directly influence cost reduction by optimizing the efficiency of customer support, thereby potentially reducing labor costs.

Question 17

Metrics can be used to elicit specific actions while creating a standard for evaluation and reward.

Accepted Answer

Metrics provide a clear guide for desired outcomes and can be used to incentivize and reward individuals or teams who meet or exceed established standards.

Question 18

Location analysis can be used with marketing initiatives to:
A) assess the performance of widely dispersed managers.
B) create marketing campaign budgets.
C) replace the need for marketing managers.
D) adjust product prices to fit supply and demand.
E) all of the above

Accepted Answer

The answer of Location analysis can be used with marketing...

Question 19

Temporal site usage analysis can identify traffic by all of the following except:
A) month
B) week
C) day of week
D) hour of day
E) second

Accepted Answer

Temporal site usage analysis can identify traffic by month, week, day of week, hour of day, but not by second. Analyzing site traffic by second would require real-time tracking which is not typically part of a standard temporal site usage analysis.

Question 20

Metrics can be used to define the actions required to meet business objectives.

Accepted Answer

Metrics help to measure progress towards business objectives and identify where action needs to be taken to meet them.

Quiz 12: Metrics for Performance Measurement in E-commerce

Maximizing traffic will always lead to maximum profit.

A visit is a collection of webpages viewed by a single user during a period of time on a website - usually 30 minutes.

A _____ is a website where materials can be posted and edited by a group of interested participants.

Multi-dimensional scorecards can be created externally using approaches such as the balanced scorecard.

Which of the following statements about metrics is true?

The conversion of traffic into customers represents a metric best suited for online businesses that only sell goods.

Which of the following terms represents the proportion of click-throughs that actually result in the purchase of goods or services?

Site usage metrics help an ebusiness assess the effectiveness of its ecommerce website.

Metrics can help an entity do which of the following?

Management and measurement are conflicting concepts.

The following are all related marketing metrics except:

Maximizing revenues is not the same as maximizing traffic.

During the dot-com bubble, investors focused on financial metrics like return on investment (ROI) when assessing ecommerce sites.

Metrics have limitations including all of the following except:

Which of the following statements about performance metrics is false?

Which of the following metrics could be used to achieve the objective of cost reduction?

Metrics can be used to elicit specific actions while creating a standard for evaluation and reward.

Location analysis can be used with marketing initiatives to:

Temporal site usage analysis can identify traffic by all of the following except:

Metrics can be used to define the actions required to meet business objectives.