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gg Simon Chapter 1: The foundations of
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gg digital Test bank answers
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1. a), b), d), e)
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2. False
3. c)
4. b)
5. b)
6. c)
7. a)
8. d)
9. True
10. False:
11. b)
12. False
13. c)
14. b)
15. b)
16. True
17. a)
18. c)
19. c)
20. a), b)
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,Digital Marketing Strategy 3e by
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gg Simon Chapter 1: The foundations of
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gg digital Test bank
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1. Which four of the following make up ‘The 4 Ps of Marketing’?
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a) Price
b) Promotion
c) Process
d) Place
e) Product
2. True or false: ‘Below-the-line’ promotion refers to mass marketing such as TV adverts.
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3. Which one of the following is NOT one of Porter’s Five Forces?
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a) Threat of new entrants gg gg gg
b) Bargaining power of suppliers gg gg gg
c) Bargaining power of competitors gg gg gg
d) Threat of substitute products or services
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4. A Brand or Perceptual Positioning Map maps a company’s position in the market
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from whichperspective?
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a) Suppliers
b) Consumers
c) Competitors
d) Regulators
5. What does CPA stand for?
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a) Customer per acquisition gg gg
b) Cost per acquisition gg gg
c) Cost per average margin gg gg gg
d) Customer per average cost gg gg gg
6. What does CLTV stand for?
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a) Competitor Lifetime Value gg gg
b) Customer Lifetime View gg gg
c) Customer Lifetime Value gg gg
d) Competitor Lifetime View gg gg
7. What is the formula for calculating CLTV?
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a) CLTV = Lifetime x Avg margin gg gg gg gg gg
b) CLTV = Lifetime x Avg cost gg gg gg gg gg
c) CLTV = Lifecycle x Avg price gg gg gg gg gg
d) CLTV = Lifecycle x Avg revenue gg gg gg gg gg
8. What type of segmentation groups customers by age range?
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, a) Geographic
b) Benefit
c) Psychographic
d) Demographic
9. True or false: Geographic marketing can help inform data selection for
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digital marketingstrategy.
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10. True or false: People in the same demographic will often behave similarly.
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11. Why is it important to work with up-to-date behavioural data?
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a) Because customers may move to a new area gg gg gg gg gg gg gg
b) Because customers may experience lifestyle changes
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c) Because customers may change their job gg gg gg gg gg
d) Because customers may hear about a competitor.
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12. True or false: The benefits of a product will be the same for everyone within a
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segment.
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13. Which type of segmentation would help a company to understand whether
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ggtheir customers are motivated by ‘green’ products?
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a) Benefit
b) Behavioural
c) Psychographic
d) Geographic
14. How many personas would a business create,
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ggon average?a)
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b) 5-10
c) 10-15
d) 15-20
15. What do the letters on the BCG Matrix stand for?
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a) Boston Consumer Group gg gg
b) Boston Consulting Group gg gg
c) Bolton Consulting Group gg gg
d) Bolton Consumer Group gg gg
16. True or false: Products categorized as ‘Dogs’ tend to break-even.
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17. Which products give a high market share in a high-growth environment?
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a) Stars
b) Dogs
c) Cash cows gg
d) Question marks gg
18. A digital marketing business may seek to move SEO from what to what on the BCG
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ggMatrix?:
a) A Cash cow to a Star
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