1. What are the benefits of selling online? Select all that apply.

a) Save on startup and overhead costs

b) Adapt easily to customers’ needs
c) Receive a higher rate of returns
d) Sell new products quicker

2. Which e-commerce type, such as photos, music files, or online courses, can you download
to your device?
a) Physical goods
b) Services
c) Software
d) Digital goods

3. Which e-commerce type does a person provide online such as a tutoring lesson or health coaching
session?
a) Services
b) Software
c) Digital goods
d) Physical goods

4. Fill in the blank: E-commerce includes two types of businesses: online-only and _____.
a) brick-and-mortar
b) click-and-mortar
c) services
d) software

5. Why would a store with a physical location make their products available for sale online? Select
three.
a) Online shopping can drive in-store traffic.
b) Customers enjoy browsing inventory online.
c) It is easier to contact customers.
d) The majority of customers shop online first.

6. An online store sells home goods such as furniture and kitchen appliances. These products are
examples of which common e-commerce category?
a) Software
b) Services
c) Digital products
d) Physical goods
7. Which of the following is considered an e-commerce service?
a) Home and office furniture
 b) E-books
c) Video editing software
d) Business consulting

8. Which of the following are challenges in e-commerce? Select all that apply.
a) Higher rate of returns
b) Lack of in-person customer service
c) Difficulty stocking new products
d) Cost of shipping

9. Fill in the blank: The number of visits that a website receives is called _____.
a) call to action
b) software
c) e-commerce
d) traffic

10. What capabilities do e-commerce platforms offer businesses?

a) Manage inventory and improve physical storefront capabilities
b) Manage a physical storefront and order inventory online
c) Build and track physical storefront sales and inventory
d) Create and maintain a digital storefront and sell products or services online

11. What information does a marketer gather when researching a company’s market size?
a) A description of customers most likely to purchase the company's products or services
b) The general public’s budget for the company’s products or services
c) The level of demand for the company’s products or services
d) The company’s most important competition

12. What is a target audience?

a) The people who buy a competitor’s products
b) The people who are interested in partnering with a brand
c) The people who are most likely to buy a brand’s products
d) The people who work with a brand

13. Which of the following equations would allow a company to calculate the net profit of a product?
a) Total revenue − total expenses
b) Total expenses x total revenue
c) Total revenue + total expenses
 d) Total expenses / total revenue

14. Which of the following fulfillment methods ships products from the supplier directly to the customer
and is the fastest way to bring a product to market?
a) Dropshipping
b) Warehousing
c) Packing and shipping
d) Third-party fulfillment

15. Which of the following are key characteristics of branding? Select all that apply.
a) How customers feel about a company and the products it sells
b) How a company treats their customers and how they make things right when there is a mistake
c) How customers connect with the values that the company supports
d) How customers interact with a company’s competitors

Answer key:

1 (a,b,d),
2. (d)
3. A4. B
5. A, B, D
6. D
7. D
8. A, B, D
9. D
10. D
11. C
12. C
13. A
14. A
15. A, B, C

1.Question: Which of the following are things that can be sold online through e-commerce? Select all
that apply.

A. Software

B. Physical goods

C. Services

D. Brick-and-mortar stores
2.

Question: A company offers a program that allows customers to edit videos online. What type of e-
commerce product does the company sell?

A. A high-end product

B. A software product

C. A physical product

D. A customized product

3.

Question: Which of the following are benefits of e-commerce? Select all that apply.

A. E-commerce allows customers to visit a specific location to shop during their business hours.

B. E-commerce reduces overhead expenses and lowers startup costs, since it does not require a
storefront.

C. E-commerce allows businesses to operate 24 hours a day, 7 days a week, so customers can shop
whenever they want.

D. E-commerce allows businesses to sell products to customers worldwide, since mostly anyone can visit
the store online.

4.

Question: An online store receives a large number of conversions for a new product. What do these
conversions indicate?

A. The store tracked the items customers plan to purchase.

B. Customers visited the store after clicking an ad.

C. The store gained a large number of return customers.

D. Customers purchased the product by completing the checkout process.

5.

Question: Which of the following keeps track of all the items the customer plans to purchase?

A. Digital shopping cart

B. Demographics

C. Return on ad spend (ROAS)

D. Product sources

6.
Question: Fill in the blank: The total number of potential customers within a specific industry is called
_____.

A. market size

B. sales dimension

C. merchandising sample

D. retail group

7.

Question: A marketer identifies a company’s target audience. What does the information they gather
about the target audience enable them to do?

A. Increase product prices according to a product’s popularity

B. Hire new staff to create and manage the marketing campaign and audience needs

C. Tailor the marketing campaign and pricing strategy to suit the audience’s needs

D. Determine the future popularity and net profit of a product

8.

Question: Fill in the blank: The _____ for a product indicates the amount of money left over after
expenses are paid.

A. current ratio

B. break-even point

C. net profit

D. cost of goods

9.

Question: A company designs and produces custom products by partnering with a manufacturer. What
is the benefit of using this product sourcing model?

A. It is a cost-effective process and requires no upfront commitment.

B. It gives the company more control over the design and quality of its products.

C. It is the fastest way to introduce a product to the market.

D. It allows the company to sell products and services offered by trustworthy brands.

10.

Question: Why is effective customer service important for a brand's identity?

A. It allows a company to positively affect customers’ impression of the brand.

B. It allows a company to improve the quality of its product or service.

C. It allows a company to illustrate how its values align with customers’ values.

D. It allows customers to troubleshoot problems on their own.

Answer Key

1. A, B, C

2. B

3. B, C, D

4. D

5. A

6. A

7. C

8. C

9. B

10. A