Name any 3 Online Revenue models, (no need for explanation)
CPC, CPA, CPM, Subscription, Pay per View, Sponsorship, data for email marketing, access to customer for research
Freemium
100
What does ALEA stand for
Attention
Learning
Emotional response
Acceptance
100
What is AIDA and what does it stand for?
AIDA (Attention > Interest > Desire > Action)
It is buying Model that does not, mostly applicable for Low involvement products
200
What is Freemium model, explain, give examples
freemium model is when the product or service is offered for free with a limited functional.
Paid/premium option is then available to get more advanced functions.
Example: Spotify, Dropbox
200
What is the difference between High and Low involvement product?
high involvement products are generally more expensive, or otherwise important, hence we adopt more systematic decision making process when buying such products compared to Low involvement, where we are more susceptible to impulse decisions.
200
What is web rooming and show rooming, what are their differences. (2 minutes answer)
Webrooming- information online, purchase offline
Showrooming- Information offline, purchase online
300
What CPM, CPC and CPA stand for and what are there differences?
CPM= Cost Per Mille (paid for 1.000 exposure to an ad i.e. banners)
CPC= Cost Per Click - paid for every clickthrough. i.e. paid search results, keywords with hyperlinks
CPA= Cost Per Action, - paid per conversion or other action specified by the advertiser
300
What are information processing models?
Models that represent how people think, what they pay attention to what do they remember, and all other inner processes that take place as they are exposed to a stimuli.
300
Explain how number of reviews available influences conversion on online stores. (detailed and extensive answer)
the higher number of reviews available for a product, the more likely the viewers are to buy that product.
That is because of concept of “social acceptance” high number of reviews, gives people a feeling that many people have tried it and as such, they will not be the only one to have tried it product even if it is bad. The positivity/negativity of reviews often do not matter.
400
Loyalty: What does IDIC stand for and what it means
Identification of each customer on first and subsequent visits (using cookies or log-in on site)
Differentiation among customers by segmenting them into heterogeneous groups.
Interaction – provided on-site, i.e. customer service chat, creating tailored product.
Communication refers to personalization or mass customization of content or emails according to the segmentation achieved earlier.
400
list and define the elements of Hofocker’s model (2001)
Exposure- is the message presented for long enough?
Attention- what grabs attention?
Comprehension and Perception- how does the customer interpret the stimulus?
Yielding and Acceptance- is the information accepted by the customer?
Retention- how well can the customer recall their experience?
400
Explain customer buying process, suggest ways to improve the conversion in an online environment.
- Purchase is not a stage it is a process
- Consumer may experience doubt after product choice
- As such, reassurance is required to make them move towards purchase.
Offer in page Chat, support
Offer money back guarantee
Offer list of famous partners
Offer famous media channels that featured the web-site
etc.