20 E-Commerce Analytics Quiz Questions and Answers

1. Question: What is the primary metric used to measure the percentage of website visitors who make a purchase?
Options:
A) Bounce rate
B) Conversion rate
C) Traffic volume
D) Page views
Answer: B
Explanation: Conversion rate calculates the percentage of visitors who complete a desired action, such as making a purchase, indicating the effectiveness of the e-commerce site’s sales funnel.

2. Question: Which tool is commonly used for tracking user behavior and e-commerce metrics like sessions and events?
Options:
A) Microsoft Excel
B) Google Analytics
C) Adobe Photoshop
D) SQL Server
Answer: B
Explanation: Google Analytics provides detailed insights into user interactions, traffic sources, and e-commerce performance metrics, helping businesses optimize their online stores.

3. Question: What does Average Order Value (AOV) represent in e-commerce analytics?
Options:
A) The total number of orders placed
B) The average amount spent per transaction
C) The cost of acquiring a customer
D) The rate at which carts are abandoned
Answer: B
Explanation: AOV is calculated by dividing total revenue by the number of orders, helping e-commerce businesses assess customer spending patterns and revenue potential.

4. Question: In e-commerce, what is the Customer Acquisition Cost (CAC)?
Options:
A) The total profit from repeat customers
B) The cost to attract and convert a new customer
C) The price of products sold
D) The revenue from first-time buyers
Answer: B
Explanation: CAC measures the total marketing and sales expenses divided by the number of new customers acquired, aiding in evaluating the efficiency of acquisition strategies.

5. Question: Which metric indicates the percentage of users who leave a website after viewing only one page?
Options:
A) Exit rate
B) Bounce rate
C) Conversion rate
D) Retention rate
Answer: B
Explanation: Bounce rate reflects user engagement; a high rate suggests that content or site design may not be compelling enough to retain visitors.

6. Question: What is cart abandonment rate in e-commerce?
Options:
A) The percentage of completed purchases
B) The percentage of shopping carts started but not completed
C) The average time spent in the cart
D) The number of items added to carts
Answer: B
Explanation: Cart abandonment rate is calculated as (number of abandoned carts / number of carts started) * 100, highlighting issues in the checkout process that prevent sales.

7. Question: How is Return on Ad Spend (ROAS) calculated?
Options:
A) Total revenue / Advertising cost
B) Advertising cost / Total revenue
C) Total sales / Number of ads
D) Number of clicks / Ad impressions
Answer: A
Explanation: ROAS divides revenue generated from ads by the cost of those ads, providing a direct measure of advertising campaign profitability.

8. Question: What does Lifetime Value (LTV) of a customer measure?
Options:
A) The value of a single purchase
B) The total revenue a customer generates over time
C) The initial cost of acquiring a customer
D) The number of visits by a customer
Answer: B
Explanation: LTV estimates the net profit attributed to the entire future relationship with a customer, guiding long-term retention and marketing strategies.

9. Question: Which e-commerce analytic focuses on the sources of website traffic, such as organic search or paid ads?
Options:
A) Traffic acquisition report
B) Conversion funnel analysis
C) Product performance metrics
D) User demographics
Answer: A
Explanation: Traffic acquisition reports break down visitor sources, allowing businesses to allocate resources to the most effective channels.

10. Question: What is the purpose of A/B testing in e-commerce analytics?
Options:
A) To compare two versions of a webpage for performance
B) To analyze total sales data
C) To track inventory levels
D) To monitor website uptime
Answer: A
Explanation: A/B testing helps identify which version of a page element drives better engagement or conversions, optimizing user experience based on data.

11. Question: In e-commerce, what does the metric “session duration” indicate?
Options:
A) The total number of visits
B) The average time users spend on the site per session
C) The number of pages viewed
D) The rate of new users
Answer: B
Explanation: Session duration measures how long users interact with the site, providing insights into content engagement and potential interest.

12. Question: How can e-commerce businesses use cohort analysis?
Options:
A) To group and track user behavior over time
B) To calculate daily sales totals
C) To manage product stock
D) To design website layouts
Answer: A
Explanation: Cohort analysis segments users based on shared characteristics, like sign-up date, to observe retention and behavior patterns for targeted improvements.

13. Question: What is the key benefit of using heatmaps in e-commerce analytics?
Options:
A) Visualizing where users click or scroll on a page
B) Calculating shipping costs
C) Tracking email open rates
D) Analyzing competitor prices
Answer: A
Explanation: Heatmaps show user interaction hotspots, helping optimize page design for better navigation and conversion rates.

14. Question: Which formula is used to calculate the churn rate in e-commerce?
Options:
A) (Number of customers lost / Total customers) * 100
B) (Total sales / Number of customers) * 100
C) (New customers / Existing customers) * 100
D) (Repeat purchases / Total purchases) * 100
Answer: A
Explanation: Churn rate identifies the percentage of customers who stop engaging, allowing businesses to focus on retention strategies.

15. Question: What role does predictive analytics play in e-commerce?
Options:
A) Forecasting future trends based on historical data
B) Recording past sales only
C) Managing real-time inventory
D) Designing product images
Answer: A
Explanation: Predictive analytics uses data models to anticipate customer behavior, sales trends, and demand, enabling proactive decision-making.

16. Question: In e-commerce, what is the significance of the funnel analysis?
Options:
A) It maps the customer journey from awareness to purchase
B) It tracks employee performance
C) It analyzes social media engagement
D) It monitors website speed
Answer: A
Explanation: Funnel analysis identifies drop-off points in the conversion process, helping to streamline the path to purchase.

17. Question: How is the net promoter score (NPS) relevant to e-commerce analytics?
Options:
A) It measures customer loyalty and satisfaction
B) It calculates product return rates
C) It tracks website traffic
D) It evaluates shipping times
Answer: A
Explanation: NPS gauges the likelihood of customers recommending the brand, influencing strategies for customer experience and retention.

18. Question: What does segmentation in e-commerce analytics involve?
Options:
A) Dividing customers into groups based on behavior or demographics
B) Combining all data into one report
C) Focusing only on high-value products
D) Ignoring low-traffic pages
Answer: A
Explanation: Segmentation allows for personalized marketing by analyzing subsets of data, improving targeting and campaign effectiveness.

19. Question: Which metric helps e-commerce sites evaluate the effectiveness of their email marketing campaigns?
Options:
A) Click-through rate (CTR)
B) Total website visits
C) Product reviews
D) Social media likes
Answer: A
Explanation: CTR measures the percentage of recipients who click on links in emails, indicating engagement and the potential for conversions.

20. Question: What is the main goal of using attribution modeling in e-commerce analytics?
Options:
A) To assign credit to various touchpoints in the customer journey
B) To calculate total inventory
C) To design new products
D) To track competitor activities
Answer: A
Explanation: Attribution modeling determines which marketing channels contribute to conversions, optimizing budget allocation for better ROI.