Question 1

FCR (First Contact Resolution) refers to:

Accepted Answer

**FCR** is the % of issues resolved in the first customer contact (concept).

Question 2

Which KPI best indicates delivery performance in e-commerce?

Accepted Answer

**On-time delivery %** is a key operations KPI for logistics/service quality (overview).

Question 3

A PDP is mainly used to show:

Accepted Answer

**PDP** (Product Detail Page) presents complete information to support buying decisions (concept).

Question 4

TCS/TDS collected/deducted at source in e-commerce generally means:

Accepted Answer

**TCS/TDS** are mechanisms where tax is collected/deducted at source and deposited (overview).

Question 5

Which stakeholder is mainly responsible for last-mile delivery?

Accepted Answer

**Logistics partners** handle shipping and last-mile delivery; reverse logistics handles returns (concept).

Question 6

Which is a trust mechanism commonly used by platforms?

Accepted Answer

**Ratings/reviews**, verification and return policies help build trust in online transactions (concept).

Question 7

AI personalization in e-commerce is commonly used for:

Accepted Answer

**AI personalization** powers recommendations and relevance, improving conversion and AOV (overview).

Question 8

Which is a common cause of cart abandonment?

Accepted Answer

Hidden charges reduce **trust** and cause drop-offs during checkout (concept).

Question 9

Which element most directly builds trust on a PDP?

Accepted Answer

**Ratings/reviews** and clear return/delivery info are key trust signals on product pages (concept).

Question 10

Data minimization in privacy means:

Accepted Answer

**Data minimization** reduces privacy risk by limiting collection to what is necessary (overview).

Question 11

LTV refers to:

Accepted Answer

**LTV** is the long-term value/profit contribution from a customer over time (concept).

Question 12

SEM (paid search) is commonly associated with:

Accepted Answer

**SEM/PPC** brings traffic quickly by paying for clicks/impressions (concept).

Question 13

SEO primarily aims to:

Accepted Answer

**SEO** improves rankings and traffic without paying per click (concept).

Question 14

Which model involves consumers selling products to other consumers using a platform?

Accepted Answer

**C2C** platforms enable consumer-to-consumer transactions (concept).

Question 15

Authorization in a payment transaction refers to:

Accepted Answer

**Authorization** is the approve/decline decision; **settlement** may happen later (concept).

Question 16

Which is a major growth driver of e-commerce?

Accepted Answer

Wider adoption of **digital payments** (UPI/cards/wallets) drives e-commerce growth (concept).

Question 17

An e-commerce ecosystem mainly refers to:

Accepted Answer

E-commerce works through an **ecosystem** of customers, sellers, platforms, payments, logistics and support (concept).

Question 18

Last-mile delivery refers to:

Accepted Answer

**Last-mile** is the final step from hub to the customer’s address (concept).

Question 19

Influencer marketing is mainly used to improve:

Accepted Answer

Influencers provide **social proof** and reach for awareness/consideration and sometimes conversions (concept).

Question 20

Which is a key purpose of CRM in e-commerce?

Accepted Answer

CRM helps manage customer profiles, segmentation, and support interactions to improve **retention** (concept).

Question 21

Data minimization means collecting only necessary customer data. (True/False)

Accepted Answer

True. **Data minimization** reduces privacy risk by limiting data collection to what is needed (overview).

Question 22

Define LTV in e-commerce.

Accepted Answer

**LTV (Customer Lifetime Value)** is the total expected value/profit contribution a customer generates over the entire relationship period (concept).

Question 23

Tokenization means replacing sensitive card data with a token. (True/False)

Accepted Answer

True. **Tokenization** replaces sensitive card details with a non-sensitive token to reduce exposure (overview).

Question 24

State one reason why checkout should have fewer steps.

Accepted Answer

Fewer steps reduce **friction** and lower **cart abandonment**, improving conversion (concept).

Question 25

Define CRM.

Accepted Answer

**CRM (Customer Relationship Management)** is a process/system for managing customer information and interactions to improve customer experience, retention and sales (concept).

Question 26

Ratings and reviews are trust signals on e-commerce product pages. (True/False)

Accepted Answer

True. **Ratings and reviews** help reduce uncertainty and build trust in online buying (concept).

Question 27

What is CRO?

Accepted Answer

**CRO (Conversion Rate Optimization)** is improving the website/app to increase the percentage of visitors who complete a desired action like purchase (concept).

Question 28

A/B testing compares two versions to see which improves a KPI. (True/False)

Accepted Answer

True. **A/B testing** compares A (control) vs B (variant) to improve a metric like conversion (concept).

Question 29

What is CAC?

Accepted Answer

**CAC (Customer Acquisition Cost)** is the total marketing/sales cost spent to acquire customers divided by the number of new customers acquired (concept).

Question 30

Define PDP in e-commerce.

Accepted Answer

**PDP (Product Detail Page)** provides complete product information such as images, specs, price, delivery and reviews (concept).

Question 31

Explain any three ways CRM helps improve retention in e-commerce (use a table).

Accepted Answer

CRM improves retention by using customer data to personalize and solve issues faster (concept).

| CRM use | How it improves retention (concept) |
|---|---|
| **Segmentation** | different offers for new vs repeat customers |
| Ticket history | faster resolution and higher **FCR** |
| Personalization | recommendations based on past purchases |
| Campaign automation | reminders, loyalty points, win-back messages |

Write any three points.

Question 32

Draw the e-commerce marketing funnel and explain any three stages (use a flowchart).

Accepted Answer

Marketing funnel shows the customer journey from awareness to purchase and loyalty (concept).

Flowchart:

```text
Awareness -> Consideration -> Visit/View -> Add to Cart -> Purchase -> Repeat/Loyalty
```

Explain any three stages:
- **Awareness**: customer discovers brand/product (ads/social/SEO)
- **Consideration**: compares options, reads reviews
- **Purchase**: checkout and payment completion
- Repeat/Loyalty: retention via email/WhatsApp offers (concept)

Question 33

Explain any three ways to reduce CAC (Customer Acquisition Cost) in e-commerce (use a table).

Accepted Answer

Ways to reduce **CAC** focus on improving efficiency of marketing and conversion (concept).

| Lever | How it reduces CAC (concept) |
|---|---|
| Improve **conversion rate** | more customers from same traffic |
| Better targeting/segmentation | less wasted ad spend |
| Increase organic traffic (SEO) | reduces dependence on paid clicks |
| Referrals/UGC | lower-cost acquisition |

Write any three points.

Question 34

List any three social media marketing activities for e-commerce and one benefit of each (use a table).

Accepted Answer

Activities and benefits (concept):

| Activity | Example | Benefit |
|---|---|---|
| **Content/UGC** | reels, demos, reviews | builds trust + awareness |
| **Paid ads** | targeted campaigns | drives traffic + conversions |
| Community engagement | comments/DM support | improves loyalty |
| Live commerce (overview) | live product showcase | higher engagement |

Write any three rows.

Question 35

Differentiate CSAT and NPS (any three points) using a table.

Accepted Answer

Difference (concept):

| Basis | **CSAT** | **NPS** |
|---|---|---|
| What it measures | satisfaction after interaction/order | likelihood to recommend |
| Timing | usually after a ticket/order | periodic relationship metric |
| Scale/output | satisfaction score | promoters vs detractors score |

Any three points are sufficient.

Question 36

Discuss SEO strategies for an e-commerce site (exam-style) and add a small table of on-page vs technical SEO.

Accepted Answer

### SEO strategies (e-commerce)
- optimize category pages and product titles/descriptions with keywords (concept)
- improve site speed and mobile usability (technical SEO) (overview)
- use structured attributes for better indexing and internal linking (concept)
- create content: buying guides, FAQs, comparison pages (concept)

| Type | Activities (concept) |
|---|---|
| **On-page SEO** | titles, headings, descriptions, internal links |
| **Technical SEO** | speed, mobile-friendly design, clean URLs |

Conclusion: SEO builds long-term organic traffic and improves conversion through better discovery (concept).

Question 37

Explain returns management and reverse logistics process (exam-style) with a flowchart and table.

Accepted Answer

### Returns management process

```text
Return Request -> Pickup -> QC at Hub -> Decision (Restock/Refurbish/Scrap) -> Refund/Replacement
```

### Key controls (table)

| Control | Purpose (concept) |
|---|---|
| clear return policy | sets expectations and reduces disputes |
| QC/inspection | prevents resale of damaged items |
| packaging standards | reduces transit damage |
| catalogue accuracy | reduces mismatch returns |

Conclusion: Efficient **reverse logistics** reduces cost and improves customer experience (concept).

Question 38

Explain e-commerce KPIs and how they guide decisions (exam-style) with a table.

Accepted Answer

### Meaning
**KPIs** are measurable indicators used to evaluate performance and make improvements in e-commerce (concept).

### KPI → decision mapping (table)

| KPI | What it indicates (concept) | Typical action (concept) |
|---|---|---|
| **Conversion rate** | site effectiveness | improve UX/PDP/checkout |
| Cart abandonment | checkout friction | simplify steps, show charges early |
| **Payment success** | payment reliability | add options, retry flow, fix failures |
| Return rate | mismatch/quality issues | improve catalogue, QC, packaging |
| **AOV** | basket size | bundles, cross-sell, pricing offers |

Conclusion: Tracking KPIs continuously improves conversion, cost control and profitability (concept).

Question 39

Discuss key CRM metrics (CSAT, NPS, FCR, AHT) and why they matter (exam-style) with a table.

Accepted Answer

### Key metrics

| Metric | Meaning (concept) | Why it matters (concept) |
|---|---|---|
| **CSAT** | satisfaction after interaction/order | indicates service quality |
| **NPS** | likelihood to recommend | measures loyalty/brand advocacy |
| **FCR** | solved in first contact | reduces cost and improves CSAT |
| **AHT** | time to handle case | efficiency and staffing planning |

Conclusion: Improving FCR and resolution time typically improves CSAT and retention (concept).

Question 40

Discuss CRO techniques to reduce cart abandonment (exam-style) and include a small table.

Accepted Answer

### Meaning
**CRO** aims to increase purchases by improving the shopping experience (concept).

### Techniques to reduce cart abandonment
- simplify **checkout** (fewer steps, guest checkout)
- show full price breakup early (avoid hidden charges)
- improve payment success (multiple options, retry)
- show trust signals (reviews, secure payment, easy returns)
- improve speed and error handling (concept)

| Problem | CRO fix (concept) |
|---|---|
| long forms | autofill + saved addresses |
| payment failures | retry + alternate payment options |
| uncertainty | delivery date + return policy on PDP/checkout |

Conclusion: Removing friction and building trust improves conversion (concept).

E-Commerce — Question Paper

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