Digital Marketing Strategy | Adobe, Apple Pay & Marketing Frameworks | 100+ MCQs with Answers
Q1. What is considered the “holy grail of marketing”?
A. Maximizing ad impressions
B. Reaching the right person at the right time with the right message
C. Increasing cost per click
D. Expanding customer lifetime value
✅ Answer: B. Reaching the right person at the right time with the right message
Q2. The Adobe case primarily illustrates which strategic shift?
A. From B2C to B2B model
B. From perpetual licensing to subscription model
C. From product diversification to divestment
D. From cloud to on-premise services
✅ Answer: B. From perpetual licensing to subscription model
Q3. What was Adobe’s major problem with perpetual licensing?
A. Declining innovation and high piracy
B. Overpriced subscription fees
C. Too many software updates
D. Lack of distribution partners
✅ Answer: A. Declining innovation and high piracy
Q4. In perpetual licensing, Adobe lacked visibility into:
A. Revenue streams
B. Customer usage and engagement data
C. Partner margins
D. Creative assets
✅ Answer: B. Customer usage and engagement data
Q5. Under the Creative Cloud model, Adobe benefited through:
A. Decreased data capture
B. Recurring revenue and usage analytics
C. One-time payments
D. Offline piracy expansion
✅ Answer: B. Recurring revenue and usage analytics
Q6. Which metric best measures marketing efficiency in digital campaigns?
A. Return on Ad Spend (ROAS)
B. Cost per View (CPV)
C. Bounce Rate
D. Organic Traffic Volume
✅ Answer: A. Return on Ad Spend (ROAS)
Q7. What caused customer pushback to Adobe’s subscription model?
A. Difficulty downloading updates
B. Fear of losing control over data and increased fixed costs
C. Lack of creative features
D. Poor brand reputation
✅ Answer: B. Fear of losing control over data and increased fixed costs
Q8. Which digital advertising pricing model is best for brand awareness campaigns?
A. CPC (Cost Per Click)
B. CPA (Cost Per Acquisition)
C. CPM (Cost Per Mille)
D. CPL (Cost Per Lead)
✅ Answer: C. CPM (Cost Per Mille)
Q9. CPC model is ideal for which marketing funnel stage?
A. Awareness
B. Interest
C. Conversion
D. Advocacy
✅ Answer: C. Conversion
Q10. In Google Ad Rank, ranking depends on:
A. Bid value and ad quality
B. Page views only
C. Keyword density
D. Domain authority
✅ Answer: A. Bid value and ad quality
Q11. What is a “Zero-Click Search”?
A. A search query that yields no results
B. A search where the answer appears directly on the results page
C. A search performed without keywords
D. A paid advertisement click
✅ Answer: B. A search where the answer appears directly on the results page
Q12. The AIDA model stands for:
A. Awareness, Innovation, Demand, Action
B. Attention, Interest, Desire, Action
C. Attraction, Interest, Distribution, Analysis
D. Awareness, Information, Design, Activity
✅ Answer: B. Attention, Interest, Desire, Action
Q13. The “social contract of the internet” implies:
A. Free content in exchange for user attention to ads
B. Paid access for ad-free experiences
C. User privacy in exchange for subscriptions
D. Sharing profits with content creators
✅ Answer: A. Free content in exchange for user attention to ads
Q14. Websites like Times of India primarily optimize for:
A. Transaction value
B. Ad revenue
C. Conversion rate
D. Customer loyalty
✅ Answer: B. Ad revenue
Q15. Cognitive misers prefer websites that are:
A. Beautiful but slow
B. Complex but feature-rich
C. Fast and simple
D. Interactive and graphical
✅ Answer: C. Fast and simple
Q16. Which statement best summarizes user behavior online?
A. Users value speed over aesthetics
B. Users prefer slower sites with visuals
C. Users ignore usability if design is good
D. Users read full text before acting
✅ Answer: A. Users value speed over aesthetics
Q17. The Customer Decision Journey (CDJ) complexity depends on:
A. Company advertising budget
B. Bureaucracy of the organization
C. Product packaging
D. Social media presence
✅ Answer: B. Bureaucracy of the organization
Q18. Which is NOT part of the media puzzle?
A. Paid media
B. Owned media
C. Shared media
D. Archived media
✅ Answer: D. Archived media
Q19. Adobe’s acquisition of Omniture allowed it to:
A. Expand cloud storage
B. Add analytics and monetization capability
C. Reduce software piracy
D. Move into hardware
✅ Answer: B. Add analytics and monetization capability
Q20. Adobe’s shift to a subscription model led to:
A. Decline in total revenue
B. Rise in total revenue and data-driven control
C. Decrease in user engagement
D. Increase in piracy
✅ Answer: B. Rise in total revenue and data-driven control
Q21. What is the Customer Lifetime Value (CLV)?
A. One-time purchase revenue
B. Average revenue per user multiplied by duration
C. Net profit from a customer over time
D. Subscription renewal fee
✅ Answer: C. Net profit from a customer over time
Q22. Apple Pay primarily solved which ecosystem pain point?
A. Transaction speed and fraud reduction
B. Advertising personalization
C. Merchant acquisition
D. Loyalty program management
✅ Answer: A. Transaction speed and fraud reduction
Q23. Which party pays the Merchant Discount Rate (MDR)?
A. Customer
B. Merchant
C. Issuer bank
D. Payment network
✅ Answer: B. Merchant
Q24. Who benefits most from reduced fraud in Apple Pay?
A. Merchants
B. Banks
C. Consumers
D. Regulators
✅ Answer: B. Banks
Q25. Tokenization ensures:
A. Higher MDR
B. Real card data is not shared during transactions
C. Customer data is publicly visible
D. Slower transactions
✅ Answer: B. Real card data is not shared during transactions
Q26. The biggest drawback of tokenization is:
A. Merchants receive less transaction data
B. More fraud
C. Higher latency
D. Device dependency
✅ Answer: A. Merchants receive less transaction data
Q27. Apple Pay’s strategic advantage is:
A. Owning the customer experience and data
B. Charging highest MDR
C. Eliminating banks
D. Limiting device compatibility
✅ Answer: A. Owning the customer experience and data
Q28. Apple monetized its payment data by:
A. Selling it to third parties
B. Partnering with Goldman Sachs to launch credit services
C. Charging users a monthly fee
D. Advertising within Wallet
✅ Answer: B. Partnering with Goldman Sachs to launch credit services
Q29. Apple’s entry into financial services created:
A. Apple Pay Services Division
B. Apple Payments and Services division
C. Apple Bank
D. Apple Capital
✅ Answer: B. Apple Payments and Services division
Q30. Apple achieved banking scale without:
A. A banking license
B. A payments gateway
C. Merchant partnerships
D. Tokenization technology
✅ Answer: A. A banking license
Q31. Ecosystem players like Apple and Amazon succeed because:
A. They depend on third-party platforms
B. They control the customer experience and extract rent
C. They outsource data collection
D. They charge lowest prices
✅ Answer: B. They control the customer experience and extract rent
Q32. The “rent extraction” in digital ecosystems means:
A. Charging a fee for access to the ecosystem
B. Leasing digital assets
C. Providing free data to partners
D. Paying for customer loyalty
✅ Answer: A. Charging a fee for access to the ecosystem
Q33. Adobe’s subscription model increased:
A. Piracy
B. Predictive capability and churn management
C. One-time purchases
D. Offline distribution
✅ Answer: B. Predictive capability and churn management
Q34. In digital marketing, “Owned Media” refers to:
A. Paid advertisements
B. Brand’s own channels like websites or apps
C. User-generated content
D. Partner media
✅ Answer: B. Brand’s own channels like websites or apps
Q35. Which is NOT an example of “Earned Media”?
A. Customer reviews
B. Influencer mentions
C. Paid social ads
D. Word-of-mouth
✅ Answer: C. Paid social ads
Q36. Which platform is most “set to succeed” in contextual targeting?
A. Google
B. Times of India
C. Reddit
D. Craigslist
✅ Answer: A. Google
Q37. The main reason Times of India can’t match Google’s ad performance is:
A. Lack of user intent and contextual data
B. Poor UI design
C. Low ad inventory
D. Too many popups
✅ Answer: A. Lack of user intent and contextual data
Q38. Adobe’s shift impacted piracy how?
A. Increased piracy
B. Dramatically reduced piracy
C. Made piracy easier
D. No impact
✅ Answer: B. Dramatically reduced piracy
Q39. Which was a key feature of Apple Pay’s security system?
A. Tokenization
B. QR code scanning
C. OTP verification
D. NFC blocking
✅ Answer: A. Tokenization
Q40. The Apple Pay case is an example of:
A. Value capture through ecosystem control
B. Disintermediation of e-commerce
C. Channel diversification
D. Brand cannibalization
✅ Answer: A. Value capture through ecosystem control
Q41. What does the Mastercard case primarily aim to illustrate in the course?
A. Pricing strategies for e-commerce
B. Framework for digital marketing from a strategic perspective
C. Brand building in physical stores
D. Market segmentation for new products
✅ Answer: B. Framework for digital marketing from a strategic perspective
Q42. In a case analysis, the 'Protagonist' refers to:
A. The consumer segment in focus
B. The main decision-maker in the case
C. The consultant advising the firm
D. The competitor being analyzed
✅ Answer: B. The main decision-maker in the case
Q43. The Adobe case demonstrates how a company can successfully:
A. Exit from an unprofitable business
B. Transition from product sales to service subscription
C. Reduce marketing budget
D. Eliminate intermediaries
✅ Answer: B. Transition from product sales to service subscription
Q44. Which of the following is a key benefit of subscription models?
A. Stable recurring revenue and deeper user data
B. Reduced product updates
C. One-time upfront cash inflow
D. Increased dependency on retailers
✅ Answer: A. Stable recurring revenue and deeper user data
Q45. Under perpetual licensing, Adobe’s challenge in innovation was due to:
A. Lack of incentive to roll out new versions
B. Short product lifecycle
C. High R&D costs only
D. Competitors’ fast replication
✅ Answer: A. Lack of incentive to roll out new versions
Q46. Which analytical framework is most suitable for evaluating digital marketing cases?
A. SWOT
B. Customer Lifetime Value (CLV)
C. BCG Matrix
D. PESTEL
✅ Answer: B. Customer Lifetime Value (CLV)
Q47. A major benefit for customers under Adobe’s subscription model was:
A. Lower monthly affordability and constant feature access
B. Lifetime ownership of the product
C. No need for internet connectivity
D. Free customer support
✅ Answer: A. Lower monthly affordability and constant feature access
Q48. Adobe’s move to Creative Cloud enabled:
A. Increased piracy rates
B. Global collaboration and usage monitoring
C. Offline distribution expansion
D. One-time revenue maximization
✅ Answer: B. Global collaboration and usage monitoring
Q49. Which of the following reflects a key value of Apple Pay to merchants?
A. Reduced checkout friction
B. Reduced MDR
C. Increased transaction data
D. Customer ownership
✅ Answer: A. Reduced checkout friction
Q50. The term “Media Puzzle” includes all EXCEPT:
A. Paid
B. Owned
C. Borrowed
D. Earned
✅ Answer: C. Borrowed
Q51. Which of the following metrics is most relevant for top-of-funnel campaigns?
A. CPM
B. ROAS
C. CTR
D. CPA
✅ Answer: A. CPM
Q52. Google and Amazon outperform traditional publishers because they:
A. Have larger ad spaces
B. Can map intent and context of users
C. Offer free ad placements
D. Depend only on keyword bidding
✅ Answer: B. Can map intent and context of users
Q53. What differentiates “Paid Media” from “Earned Media”?
A. Control and cost
B. Audience size
C. Format
D. Source of traffic
✅ Answer: A. Control and cost
Q54. Which model measures digital ad efficiency through profit per dollar spent?
A. ROI
B. ROAS
C. CTR
D. LTV
✅ Answer: B. ROAS
Q55. The “Social Contract of the Internet” is violated when:
A. Websites show ads even to paying users
B. Users block ads while accessing free content
C. Content is behind paywalls
D. Ads are contextually relevant
✅ Answer: B. Users block ads while accessing free content
Q56. A high “bounce rate” typically indicates:
A. Poor ad spend efficiency
B. Weak user engagement on a website
C. High CLV
D. Increased traffic
✅ Answer: B. Weak user engagement on a website
Q57. Which is a key driver of customer retention in digital services?
A. Ease of use and low switching cost
B. Aggressive advertising
C. Discount-driven acquisition
D. Complex subscription terms
✅ Answer: A. Ease of use and low switching cost
Q58. A “zero-click search” reduces:
A. Organic traffic to websites
B. Cost per impression
C. Brand recall
D. Ad spend efficiency
✅ Answer: A. Organic traffic to websites
Q59. Which analytical variable helps predict subscription churn?
A. Engagement frequency
B. Gender
C. Device type
D. Session location
✅ Answer: A. Engagement frequency
Q60. When customers fear monopoly abuse, the likely concern is:
A. Price increases over time
B. Product obsolescence
C. Poor UX design
D. Legal non-compliance
✅ Answer: A. Price increases over time
Q61. Apple Pay’s major innovation in the payment ecosystem was:
A. Tokenization and biometric authentication
B. Dynamic QR codes
C. Blockchain settlement
D. Crypto payments
✅ Answer: A. Tokenization and biometric authentication
Q62. Which party holds the highest customer data richness before Apple Pay?
A. Merchant
B. Banks
C. Payment networks
D. Regulators
✅ Answer: B. Banks
Q63. Apple’s partnership with Goldman Sachs illustrates:
A. Ecosystem integration without owning risk
B. Joint venture with equal risk sharing
C. Outsourcing of data analytics
D. Entry into traditional retail banking
✅ Answer: A. Ecosystem integration without owning risk
Q64. “Complete knowledge of the end consumer” allows firms to:
A. Personalize offerings and extract higher value
B. Outsource marketing
C. Reduce product quality
D. Lower customer experience
✅ Answer: A. Personalize offerings and extract higher value
Q65. A 2x2 ecosystem framework positions Apple as:
A. A closed, data-rich ecosystem
B. An open platform
C. A data provider for third parties
D. A transaction intermediary
✅ Answer: A. A closed, data-rich ecosystem
Q66. Adobe’s shift improved cross-selling because:
A. User data revealed feature preferences
B. It reduced product SKUs
C. VARs promoted multiple products
D. Competitors exited
✅ Answer: A. User data revealed feature preferences
Q67. Customer pushback in digital transitions usually stems from:
A. Fear of data misuse and loss of control
B. Too much personalization
C. Free trials
D. Lack of ads
✅ Answer: A. Fear of data misuse and loss of control
Q68. The “intent gap” between TOI and Google means:
A. Google understands why users visit
B. TOI has better ad reach
C. TOI controls user data
D. Google cannot show display ads
✅ Answer: A. Google understands why users visit
Q69. A major advantage of cloud-based models is:
A. Access from anywhere with automatic updates
B. Fixed device licensing
C. Offline usage only
D. Local data storage
✅ Answer: A. Access from anywhere with automatic updates
Q70. What does “ad rank” optimization achieve?
A. Better placement of high-quality ads
B. Random ad distribution
C. Higher CPC for all ads
D. Fixed ad ranking
✅ Answer: A. Better placement of high-quality ads
Q71. In marketing, “contextual targeting” means:
A. Ads shown based on content relevance
B. Ads based on random browsing
C. Ads displayed without user data
D. Ads limited to paid subscribers
✅ Answer: A. Ads shown based on content relevance
Q72. Why are customers called “cognitive misers”?
A. They avoid mental effort when interacting online
B. They read every page carefully
C. They enjoy complex interfaces
D. They seek maximum information before action
✅ Answer: A. They avoid mental effort when interacting online
Q73. What does “cost-benefit analysis” help determine in marketing?
A. ROI or Return on Ad Spend
B. Customer churn
C. Brand loyalty
D. Social sentiment
✅ Answer: A. ROI or Return on Ad Spend
Q74. The Customer Decision Journey begins with:
A. Awareness
B. Purchase
C. Advocacy
D. Action
✅ Answer: A. Awareness
Q75. An organization with many bureaucratic steps will have:
A. A longer Customer Decision Journey
B. A shorter purchase funnel
C. Faster conversions
D. Reduced brand recall
✅ Answer: A. A longer Customer Decision Journey
Q76. “Reach” is best measured using:
A. CPM
B. CPC
C. CTR
D. CPA
✅ Answer: A. CPM
Q77. A firm’s ability to “nudge” users toward ignored features is enabled by:
A. Usage analytics in cloud systems
B. Direct mail promotions
C. In-store demos
D. VAR distribution
✅ Answer: A. Usage analytics in cloud systems
Q78. Which Apple Pay feature primarily ensured convenience?
A. One-touch authentication (Touch ID)
B. OTP verification
C. QR scanning
D. Manual PIN entry
✅ Answer: A. One-touch authentication (Touch ID)
Q79. The term “rent” in ecosystem context refers to:
A. Fees charged to third-party participants
B. Fixed infrastructure cost
C. Subscription fee
D. Revenue from ads only
✅ Answer: A. Fees charged to third-party participants
Q80. Apple’s control over the payment ecosystem made it:
A. A gatekeeper with monetization power
B. Dependent on issuers
C. A data reseller
D. A regulator
✅ Answer: A. A gatekeeper with monetization power
Q81. CLV (Customer Lifetime Value) increases when:
A. Retention rate increases
B. Churn increases
C. Acquisition cost rises
D. Discounts expand
✅ Answer: A. Retention rate increases
Q82. The “freemium” strategy combines:
A. Free access with premium upgrades
B. Ad-only monetization
C. One-time purchase models
D. Zero-cost distribution
✅ Answer: A. Free access with premium upgrades
Q83. An “ugly but fast” website succeeds because:
A. Utility outweighs design aesthetics
B. It has better colors
C. It spends more on ads
D. It attracts bots
✅ Answer: A. Utility outweighs design aesthetics
Q84. Adobe’s data-driven model allowed it to:
A. Predict churn and personalize retention offers
B. Reduce R&D spending
C. Sell data externally
D. Stop software updates
✅ Answer: A. Predict churn and personalize retention offers
Q85. Which element of AIDA directly precedes “Action”?
A. Desire
B. Interest
C. Awareness
D. Engagement
✅ Answer: A. Desire
Q86. “ROAS = Revenue / Ad Spend” helps measure:
A. Advertising efficiency
B. Product pricing
C. Employee cost
D. Customer acquisition
✅ Answer: A. Advertising efficiency
Q87. The Apple Pay case demonstrates the principle of:
A. Ecosystem orchestration
B. Product diversification
C. Cost leadership
D. Brand repositioning
✅ Answer: A. Ecosystem orchestration
Q88. Adobe’s transition reflected which digital business strategy?
A. Servitization
B. Disintermediation
C. Market penetration
D. Localization
✅ Answer: A. Servitization
Q89. Which data is lost due to tokenization in Apple Pay?
A. Merchant-level transaction data
B. Consumer biometrics
C. Bank identifiers
D. Device information
✅ Answer: A. Merchant-level transaction data
Q90. In ecosystem control, “closed systems” like Apple enable:
A. Quality consistency and data dominance
B. Open-source collaboration
C. Regulatory compliance
D. Reduced customer retention
✅ Answer: A. Quality consistency and data dominance
Q91. When analyzing digital marketing performance, the key dependent variable is:
A. Conversion rate
B. Number of followers
C. Ad impressions
D. Ad placement
✅ Answer: A. Conversion rate
Q92. Adobe’s “monopoly” fear was associated with:
A. Potential price hikes under subscription
B. Increased competition
C. Piracy resurgence
D. Feature downgrades
✅ Answer: A. Potential price hikes under subscription
Q93. In Apple Pay, the “issuer” is responsible for:
A. Managing customer accounts and indemnifying fraud
B. Hardware encryption
C. Network regulation
D. Token mapping
✅ Answer: A. Managing customer accounts and indemnifying fraud
Q94. What kind of data did Apple capture post Apple Pay integration?
A. Behavioral and transaction-level insights
B. Merchant cost data
C. Regulatory filings
D. Card manufacturing data
✅ Answer: A. Behavioral and transaction-level insights
Q95. The “customer ownership” shift from banks to Apple means:
A. Apple gained primary access to behavioral data
B. Banks stopped lending
C. Merchants stopped accepting cards
D. Regulators intervened
✅ Answer: A. Apple gained primary access to behavioral data
Q96. Which of the following is a major benefit of tokenization for users?
A. Enhanced security
B. Cheaper transactions
C. Faster settlement
D. Higher cashback
✅ Answer: A. Enhanced security
Q97. A key reason why subscription models reduce piracy is:
A. Centralized authentication and cloud validation
B. Offline installation process
C. High upfront cost
D. CD-based distribution
✅ Answer: A. Centralized authentication and cloud validation
Q98. The key revenue model for a content website like TOI is:
A. CPM-based ad monetization
B. Subscription paywall
C. Affiliate marketing
D. Transaction fees
✅ Answer: A. CPM-based ad monetization
Q99. Digital marketing success relies most on:
A. Context, intent, and personalization
B. Frequency of ads
C. Higher budgets
D. Random ad placements
✅ Answer: A. Context, intent, and personalization
Q100. AIDA model is most useful for:
A. Designing marketing communication strategies
B. Optimizing pricing
C. Managing churn
D. Estimating ad rank
✅ Answer: A. Designing marketing communication strategies
Q101. What is the key challenge in managing digital ecosystems?
A. Balancing partner control and data access
B. Reducing bandwidth cost
C. Managing print ads
D. Avoiding cross-sell opportunities
✅ Answer: A. Balancing partner control and data access
Q102. Adobe’s Creative Cloud success illustrates:
A. Transformation from product to platform
B. Brand repositioning
C. Cost-cutting strategy
D. New market entry
✅ Answer: A. Transformation from product to platform
Q103. A firm’s ability to monetize “non-paid media” refers to using:
A. Owned and earned media effectively
B. Paid search
C. Influencer ads only
D. Display campaigns
✅ Answer: A. Owned and earned media effectively
Q104. Apple Pay’s success is built on:
A. Trust, simplicity, and security
B. Discounts and cashback
C. Government regulations
D. Exclusive banking tie-ups
✅ Answer: A. Trust, simplicity, and security
Q105. The primary learning from Adobe and Apple Pay cases is:
A. Strategic adaptation in the digital age
B. Price elasticity
C. Offline advertising
D. Production efficiency
✅ Answer: A. Strategic adaptation in the digital age
Q106. Which concept best links Adobe’s and Apple’s transitions?
A. Digital transformation through ecosystem control
B. Product diversification
C. Market segmentation
D. Corporate governance
✅ Answer: A. Digital transformation through ecosystem control
Q107. “Predictive analytics” in Adobe’s case was enabled by:
A. Real-time user data collection
B. Offline survey reports
C. VAR feedback
D. Retail scanner data
✅ Answer: A. Real-time user data collection
Q108. Apple’s ability to “extract rent” resembles:
A. Platform monetization through control of access
B. Selling user data
C. Licensing to competitors
D. Charity-based pricing
✅ Answer: A. Platform monetization through control of access
Q109. A fast but simple site design primarily impacts:
A. Conversion and retention
B. SEO ranking negatively
C. Ad inventory
D. Brand aesthetics only
✅ Answer: A. Conversion and retention
Q110. The overarching theme across all cases is:
A. Leveraging digital ecosystems for sustainable advantage
B. Maximizing ad spend
C. Eliminating intermediaries
D. Minimizing innovation investment
✅ Answer: A. Leveraging digital ecosystems for sustainable advantage
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