Digital Marketing Strategy & AI | Influencer, D2C, and Generative AI | 100+ MCQs with Answers
Q1. Which advertising model charges advertisers for every 1,000 impressions their ad receives?
A. CPC (Cost Per Click)
B. CPA (Cost Per Acquisition)
C. CPM (Cost Per Mille)
D. CPT (Cost Per Transaction)
✅ Answer: C. CPM (Cost Per Mille)
Q2. What does CPC stand for in digital marketing metrics?
A. Cost Per Conversion
B. Cost Per Click
C. Cost Per Campaign
D. Cost Per Content
✅ Answer: B. Cost Per Click
Q3. In the course framework, which two categories of organizations were studied for digital transformation?
A. Startups and SMEs
B. Old brands and D2C brands
C. NGOs and Public Enterprises
D. Tech firms and Banks
✅ Answer: B. Old brands and D2C brands
Q4. What type of company is Glossier categorized as in the course?
A. Traditional brand transitioning to digital
B. Pure-play D2C company
C. Retail conglomerate
D. Celebrity-driven brand
✅ Answer: B. Pure-play D2C company
Q5. Which case focused on a digital Word-of-Mouth (WOM) campaign to reach millennials?
A. Glossier
B. Lamison Simmons
C. Ford Fiesta Movement
D. Lemonade
✅ Answer: C. Ford Fiesta Movement
Q6. What was the primary objective of the Ford Fiesta campaign?
A. Increase test drives post-launch
B. Create awareness pre-launch among millennials
C. Expand dealer network
D. Generate paid leads
✅ Answer: B. Create awareness pre-launch among millennials
Q7. What kind of influencers were selected for Ford’s campaign?
A. Paid celebrity influencers
B. FSA agents who received cars and experiences
C. Internal employees
D. Paid reviewers
✅ Answer: B. FSA agents who received cars and experiences
Q8. What key metric improved by 42% during the Ford Fiesta campaign?
A. Market share
B. Brand familiarity
C. Conversion rate
D. Retention rate
✅ Answer: B. Brand familiarity
Q9. Which framework was used to design the WOM campaign in the Ford Fiesta case?
A. AIDA Model
B. Hennig and Lee Framework
C. CDJ Model
D. Kotler’s 4Ps
✅ Answer: B. Hennig and Lee Framework
Q10. The “Customer Decision Journey” (CDJ) is most aligned with which marketing focus?
A. Transactional marketing
B. Performance marketing
C. Product marketing
D. Relationship marketing
✅ Answer: B. Performance marketing
Q11. Which influencer type is most suitable for Top-of-the-Funnel objectives?
A. Nano influencers
B. Micro influencers
C. Celebrity influencers
D. Employee advocates
✅ Answer: C. Celebrity influencers
Q12. Which type of influencers are most effective for Bottom-of-the-Funnel conversions?
A. Macro influencers
B. Micro and Nano influencers
C. Celebrities
D. Political influencers
✅ Answer: B. Micro and Nano influencers
Q13. What is the estimated influencer marketing market size in India?
A. ₹1,000 Cr
B. ₹2,500 Cr
C. ₹5,000 Cr
D. ₹10,000 Cr
✅ Answer: B. ₹2,500 Cr
Q14. Which platform accounts for the largest share of influencer marketing in India?
A. YouTube
B. Facebook
C. Instagram
D. Twitter
✅ Answer: C. Instagram
Q15. What is the primary purpose of Cloud Score in influencer marketing?
A. To calculate ad spend
B. To measure influence beyond follower count
C. To predict ROI
D. To identify fake followers
✅ Answer: B. To measure influence beyond follower count
Q16. The “Novelty Principle” in marketing implies that:
A. Old strategies always outperform new ones
B. Novel strategies initially yield disproportionate outcomes
C. Established strategies are more reliable
D. ROI remains constant regardless of novelty
✅ Answer: B. Novel strategies initially yield disproportionate outcomes
Q17. What major trade-off do traditional brands face in influencer marketing?
A. Speed vs. Creativity
B. Control vs. Authenticity
C. Reach vs. Cost
D. Data vs. Privacy
✅ Answer: B. Control vs. Authenticity
Q18. Why do old brands tend to create “safe” and unengaging content?
A. To maintain cost efficiency
B. To comply with advertising law
C. Due to fear of reputational risk
D. Lack of creative talent
✅ Answer: C. Due to fear of reputational risk
Q19. Who usually takes more creative risks in influencer marketing?
A. Micro/Nano influencers
B. Celebrity influencers
C. Brand managers
D. Traditional media buyers
✅ Answer: A. Micro/Nano influencers
Q20. What is the key challenge in measuring creativity in campaigns?
A. It lacks numerical precision
B. It is too costly
C. It depends on ROI alone
D. It is automated
✅ Answer: A. It lacks numerical precision
Q21. Which set of metrics best measures awareness generation campaigns?
A. CTR and CPC
B. Sales and profit
C. Customer Equity Metrics
D. Click-through data only
✅ Answer: C. Customer Equity Metrics
Q22. What are the three dimensions of Customer Equity Metrics?
A. Awareness, Intent, Purchase
B. Acquisition, Development, Retention
C. Reach, Impressions, CTR
D. Growth, Share, Loyalty
✅ Answer: B. Acquisition, Development, Retention
Q23. What was Ford’s main strategic recommendation post-campaign?
A. Focus more on impressions
B. Emphasize customer equity over vanity metrics
C. Increase celebrity involvement
D. Outsource influencer selection
✅ Answer: B. Emphasize customer equity over vanity metrics
Q24. Glossier’s marketing stance is described as:
A. Exclusive and authoritative
B. Inclusive and engaging
C. Experimental and risky
D. Product-focused
✅ Answer: B. Inclusive and engaging
Q25. Glossier originated from which online medium?
A. Instagram
B. YouTube
C. Blog (Into The Gloss)
D. Facebook
✅ Answer: C. Blog (Into The Gloss)
Q26. What percentage of Glossier’s total spend was on paid media?
A. 10%
B. 20%
C. 30%
D. 50%
✅ Answer: C. 30%
Q27. What was the greatest strength of Glossier’s early strategy?
A. Low product pricing
B. Strong community trust and engagement
C. Paid celebrity campaigns
D. Retail expansion
✅ Answer: B. Strong community trust and engagement
Q28. What risk did Glossier face in social commerce expansion?
A. Product saturation
B. Erosion of community trust due to commercial motives
C. Rising CAC
D. Declining influencer interest
✅ Answer: B. Erosion of community trust due to commercial motives
Q29. According to Glossier’s model, brand communities should primarily serve:
A. The brand
B. The community members
C. The investors
D. The advertisers
✅ Answer: B. The community members
Q30. What was Lamison Simmons’ campaign failure rooted in?
A. Product quality
B. Pricing strategy
C. Lack of cultural sensitivity
D. Weak media mix
✅ Answer: C. Lack of cultural sensitivity
Q31. How long did the brand take to respond publicly during the Lamison crisis?
A. 1 day
B. 3 days
C. 10 days
D. 30 days
✅ Answer: C. 10 days
Q32. What is the most important factor in managing brand crises?
A. Creativity
B. Speed
C. Budget
D. Advertising spend
✅ Answer: B. Speed
Q33. Which statement best summarizes “Perception is Reality”?
A. Consumer perception determines brand truth
B. Facts outweigh emotions
C. Marketing is data-driven only
D. Brand image is irrelevant
✅ Answer: A. Consumer perception determines brand truth
Q34. The “seat belt” metaphor in crisis management refers to:
A. Having a pre-approved crisis plan
B. Reducing campaign budgets
C. Using AI for PR
D. Avoiding risky creatives
✅ Answer: A. Having a pre-approved crisis plan
Q35. Which Gen AI architecture enables text generation by predicting the next word?
A. CNN
B. RNN
C. Transformer
D. Autoencoder
✅ Answer: C. Transformer
Q36. What kind of system is Generative AI classified as?
A. Deterministic
B. Probabilistic
C. Algorithmic
D. Randomized
✅ Answer: B. Probabilistic
Q37. What does “probabilistic system” mean in the context of Gen AI?
A. Same input always gives same output
B. Outputs vary based on probability and context
C. AI cannot make mistakes
D. AI follows fixed logic
✅ Answer: B. Outputs vary based on probability and context
Q38. Which prompting method involves asking AI for the right prompt?
A. Socratic
B. Chain of Thoughts
C. Meta Prompting
D. Contextual Prompting
✅ Answer: C. Meta Prompting
Q39. The “Chain of Thoughts” method emphasizes:
A. One-time precise prompts
B. Iterative refinement of prompts
C. Randomized prompting
D. Eliminating user feedback
✅ Answer: B. Iterative refinement of prompts
Q40. The “Socratic Method” helps guard against which AI risk?
A. Overfitting
B. Hallucination
C. Undertraining
D. Over-prompting
✅ Answer: B. Hallucination
Q41. In the P-G-A-S framework, ‘P’ stands for:
A. Process
B. Persona
C. Prompt
D. Product
✅ Answer: B. Persona
Q42. In structured prompting, the ‘G’ represents:
A. Goal
B. Genre
C. Grammar
D. Guideline
✅ Answer: A. Goal
Q43. What does ‘S’ in the P-G-A-S framework stand for?
A. Strategy
B. Style
C. Stage
D. Story
✅ Answer: B. Style
Q44. What is the main limitation of Gen AI in marketing decision-making?
A. Slow processing
B. Cannot generate non-obvious insights
C. Poor grammar
D. Expensive training data
✅ Answer: B. Cannot generate non-obvious insights
Q45. The human role in Gen AI workflows should be:
A. Eliminated
B. Supervisory and interpretive
C. Technical only
D. Creative only
✅ Answer: B. Supervisory and interpretive
Q46. What is “hallucination” in AI systems?
A. The AI creates false or fabricated information
B. The AI stops responding
C. The AI repeats outputs
D. The AI misclassifies data
✅ Answer: A. The AI creates false or fabricated information
Q47. Which component of AI prompting defines the audience or target group?
A. Persona
B. Audience
C. Goal
D. Style
✅ Answer: B. Audience
Q48. Generative AI’s greatest strength currently lies in:
A. Strategic foresight
B. Productivity and research assistance
C. Human intuition
D. Leadership decisions
✅ Answer: B. Productivity and research assistance
Q49. A marketer using AI to write a creative brief would benefit most from which prompt type?
A. Meta Prompting
B. P-G-A-S Framework
C. Simple search query
D. Random prompt
✅ Answer: B. P-G-A-S Framework
Q50. What is the risk of influencer over-commercialization?
A. Loss of brand authenticity
B. Higher CPM rates
C. Declining click-throughs only
D. Platform bans
✅ Answer: A. Loss of brand authenticity
Q51. Which metric is least useful for evaluating Top-of-the-Funnel influencer campaigns?
A. Awareness
B. Reach
C. Sales conversion
D. Impressions
✅ Answer: C. Sales conversion
Q52. What is the primary advantage of using micro-influencers in niche campaigns?
A. Wider reach
B. Lower authenticity
C. Higher engagement rates
D. Guaranteed sales
✅ Answer: C. Higher engagement rates
Q53. The inverse relationship between influence and follower count indicates that:
A. Smaller influencers often have stronger influence
B. Bigger influencers always convert better
C. Influence grows with followers
D. Follower count equals credibility
✅ Answer: A. Smaller influencers often have stronger influence
Q54. What is a key risk when influencer-generated content goes viral?
A. Ad fatigue
B. Brand firestorm
C. Decreased engagement
D. Platform ban
✅ Answer: B. Brand firestorm
Q55. Which term describes the anxiety of brands when losing control over message delivery?
A. Brand fatigue
B. Control tension
C. Authenticity anxiety
D. Governance gap
✅ Answer: B. Control tension
Q56. A marketing manager shifting from TV ads to influencer collaborations must adapt primarily in which skill area?
A. Negotiation
B. Creative risk management
C. Procurement
D. Legal compliance
✅ Answer: B. Creative risk management
Q57. When assessing brand content, which measure best evaluates trust?
A. Likes per post
B. Sentiment analysis
C. Cost per acquisition
D. CPM
✅ Answer: B. Sentiment analysis
Q58. Customer Equity’s “Acquisition” component includes which two elements?
A. Expansion and Acceleration
B. Awareness and Conversion
C. Loyalty and Retention
D. Awareness and Impressions
✅ Answer: A. Expansion and Acceleration
Q59. What is a vanity metric in digital marketing?
A. A metric that looks good but lacks business meaning
B. A customer satisfaction score
C. Conversion ratio
D. CAC
✅ Answer: A. A metric that looks good but lacks business meaning
Q60. What did Ford use instead of direct cash incentives for influencers?
A. Discounts
B. Experiences and free cars
C. Paid endorsements
D. Product bundles
✅ Answer: B. Experiences and free cars
Q61. In Ford’s case, what was the biggest advantage of using experiences as rewards?
A. Tax benefits
B. Authentic storytelling
C. Reduced production cost
D. Shorter campaign timeline
✅ Answer: B. Authentic storytelling
Q62. What distinguishes earned media from paid media?
A. Earned media comes from customer advocacy and organic sharing
B. Earned media always costs more
C. Paid media has higher trust
D. Both are identical
✅ Answer: A. Earned media comes from customer advocacy and organic sharing
Q63. Which of the following reflects Glossier’s democratized brand community principle?
A. Brand dictates all communication
B. Customers shape conversations and ideas
C. The company avoids user feedback
D. Brand acts as central authority
✅ Answer: B. Customers shape conversations and ideas
Q64. What was the unique aspect of Glossier’s early community before product launch?
A. Sales-driven influencer network
B. Peer-created content and discussion
C. Celebrity endorsements
D. Paid brand ambassadorships
✅ Answer: B. Peer-created content and discussion
Q65. What risk arises if Glossier’s social commerce model dominates its community ethos?
A. Over-saturation of user data
B. Reduced trust and engagement
C. Declining ad performance
D. Increased influencer cost
✅ Answer: B. Reduced trust and engagement
Q66. Lamison Simmons’ biggest error was skipping which stage of the marketing workflow?
A. Briefing
B. Review and Approve
C. Budgeting
D. Media buying
✅ Answer: B. Review and Approve
Q67. Which component was most effective in rebuilding Lamison Simmons’ brand trust?
A. PR firm’s defense
B. CEO’s authentic apology and corrective action
C. Social media silence
D. Product relaunch
✅ Answer: B. CEO’s authentic apology and corrective action
Q68. What phrase captures the real-time velocity of online reputation crises?
A. Speed of a tweet
B. Click-through rate
C. Viral loop
D. Crisis spiral
✅ Answer: A. Speed of a tweet
Q69. What does “Perception is Reality” imply for marketers?
A. Intentions define brand success
B. Customer interpretation defines truth
C. Metrics outweigh reputation
D. All perception is temporary
✅ Answer: B. Customer interpretation defines truth
Q70. What did Lamison Simmons do post-crisis to reinforce sincerity?
A. Issued discounts
B. Funded women’s shelters
C. Fired employees
D. Released a press statement only
✅ Answer: B. Funded women’s shelters
Q71. What key organizational lesson can be drawn from Lamison Simmons’ case?
A. Preventive governance matters more than reactive PR
B. Apologies always suffice
C. Creativity outweighs ethics
D. All crises are unavoidable
✅ Answer: A. Preventive governance matters more than reactive PR
Q72. In AI-driven marketing, why must humans remain in the loop?
A. AI lacks accountability and contextual judgment
B. Humans process faster
C. Regulations require it
D. AI has no creative abilities
✅ Answer: A. AI lacks accountability and contextual judgment
Q73. Which prompting framework helps ensure clarity and structure?
A. AIDA
B. CDJ
C. P-G-A-S
D. RACE
✅ Answer: C. P-G-A-S
Q74. What is the best example of defining “Persona” in AI prompting?
A. “You are a seasoned brand strategist.”
B. “Summarize the data.”
C. “Generate an idea.”
D. “Give 3 examples.”
✅ Answer: A. “You are a seasoned brand strategist.”
Q75. The “Goal” element of P-G-A-S defines:
A. The target result the AI should produce
B. The tone of writing
C. The data source used
D. The training method
✅ Answer: A. The target result the AI should produce
Q76. In marketing applications, AI hallucination can be dangerous because:
A. It fabricates brand data or misrepresents facts
B. It slows campaign automation
C. It increases CPM
D. It reduces engagement rates
✅ Answer: A. It fabricates brand data or misrepresents facts
Q77. Which AI prompting method uses iterative improvement?
A. Chain of Thoughts
B. Socratic
C. Meta
D. P-G-A-S
✅ Answer: A. Chain of Thoughts
Q78. The Socratic prompting approach ensures:
A. Creative improvisation
B. Logical rigor and fact validation
C. Shorter response time
D. Higher click-through rates
✅ Answer: B. Logical rigor and fact validation
Q79. Which aspect of prompting defines “Style” in P-G-A-S?
A. Constraints, tone, and format rules
B. AI’s personality
C. Data privacy level
D. Keyword frequency
✅ Answer: A. Constraints, tone, and format rules
Q80. When should a marketer use Meta Prompting?
A. When unsure how to frame the initial request
B. When refining long prompts
C. When verifying logic
D. When testing creative tone
✅ Answer: A. When unsure how to frame the initial request
Q81. What core distinction separates AI insight from human insight?
A. AI works from context; humans infer non-obvious truths
B. Humans rely on data; AI on instinct
C. AI can predict emotions
D. Both operate identically
✅ Answer: A. AI works from context; humans infer non-obvious truths
Q82. In performance marketing, what is the main objective?
A. Awareness
B. Conversion and measurable ROI
C. Public relations
D. Product innovation
✅ Answer: B. Conversion and measurable ROI
Q83. Which platform is least likely to drive influencer engagement in India?
A. Instagram
B. YouTube
C. Facebook
D. LinkedIn
✅ Answer: D. LinkedIn
Q84. The phrase “losing control dramatically” refers to what marketing shift?
A. From top-down brand messaging to user-generated content
B. From offline to TV ads
C. From mass to local targeting
D. From digital to print
✅ Answer: A. From top-down brand messaging to user-generated content
Q85. What is the key reason established brands struggle with edgy content?
A. Fear of backlash and reputation risk
B. Limited budget
C. Lack of creative teams
D. Platform restrictions
✅ Answer: A. Fear of backlash and reputation risk
Q86. The risk of influencer content turning controversial is an example of:
A. Risk transfer
B. Brand fatigue
C. Brand recall
D. ROI risk
✅ Answer: A. Risk transfer
Q87. When measuring creative success, what is most subjective?
A. ROI
B. Audience sentiment
C. CTR
D. CPA
✅ Answer: B. Audience sentiment
Q88. What should marketers prioritize in top-funnel campaigns?
A. Awareness and recall
B. Conversion rate
C. Loyalty programs
D. Direct sales
✅ Answer: A. Awareness and recall
Q89. Which Glossier element best built brand equity before product launch?
A. Paid influencers
B. The “Into The Gloss” blog community
C. Retail partnerships
D. Celebrity collaborations
✅ Answer: B. The “Into The Gloss” blog community
Q90. What is the core difference between earned and owned media?
A. Earned media is externally generated; owned is controlled by brand
B. Both are paid
C. Owned media requires PR
D. Earned media is guaranteed
✅ Answer: A. Earned media is externally generated; owned is controlled by brand
Q91. In influencer marketing, which combination optimizes both reach and trust?
A. Only celebrity influencers
B. Mix of macro and micro influencers
C. Only nano influencers
D. Employee advocacy only
✅ Answer: B. Mix of macro and micro influencers
Q92. The “pipeline before launch” strategy in Ford Fiesta illustrates which marketing phase?
A. Pre-awareness building
B. Retention
C. Development
D. After-sales service
✅ Answer: A. Pre-awareness building
Q93. What is one reason AI output can vary with identical input prompts?
A. Transformer model’s probabilistic behavior
B. Poor coding
C. Data corruption
D. Random errors
✅ Answer: A. Transformer model’s probabilistic behavior
Q94. Which AI prompting style ensures cultural sensitivity in outputs?
A. Style parameter in P-G-A-S
B. Audience parameter
C. Meta prompting
D. Randomization
✅ Answer: A. Style parameter in P-G-A-S
Q95. What best describes “grunt work” tasks AI excels at?
A. Repetitive, structured, data-heavy work
B. Creative storytelling
C. Ethical reasoning
D. Strategic decision-making
✅ Answer: A. Repetitive, structured, data-heavy work
Q96. What metric would be irrelevant in an awareness campaign?
A. Sales
B. Reach
C. Impressions
D. Engagement
✅ Answer: A. Sales
Q97. A well-designed creative brief helps ensure:
A. Consistency in message and measurable objectives
B. Faster approvals only
C. Lower production costs
D. Broader audience
✅ Answer: A. Consistency in message and measurable objectives
Q98. Which tool in Exhibit 6 of Glossier reading helps design campaigns?
A. Creative Brief Template
B. Ad Budget Matrix
C. Market Segmentation Table
D. Brand Persona Grid
✅ Answer: A. Creative Brief Template
Q99. The “Holy Grail of Marketing” ultimately seeks to:
A. Lower costs
B. Reach the right person at the right time with the right message
C. Drive mass reach only
D. Maximize impressions
✅ Answer: B. Reach the right person at the right time with the right message
Q100. Which AI method should marketers use to validate factual consistency?
A. Socratic questioning
B. Meta prompting
C. Chain of thoughts
D. Simplified prompt
✅ Answer: A. Socratic questioning
Q101. When influencer marketing becomes mainstream, ROI typically:
A. Increases
B. Declines due to saturation
C. Remains constant
D. Becomes unmeasurable
✅ Answer: B. Declines due to saturation
Q102. What is a key component of a strong brand community?
A. Two-way dialogue and shared purpose
B. One-way communication
C. Price discounts
D. Top-down control
✅ Answer: A. Two-way dialogue and shared purpose
Q103. Which of the following is not a Customer Equity dimension?
A. Acquisition
B. Retention
C. Advocacy
D. Development
✅ Answer: C. Advocacy
Q104. The key difference between deterministic and probabilistic systems is:
A. Deterministic gives fixed outcomes; probabilistic gives variable outcomes
B. Both are identical
C. Probabilistic is faster
D. Deterministic uses randomization
✅ Answer: A. Deterministic gives fixed outcomes; probabilistic gives variable outcomes
Q105. What ensures the ethical deployment of AI in marketing?
A. Human oversight and responsible governance
B. Full automation
C. Ignoring bias
D. Unlimited data scraping
✅ Answer: A. Human oversight and responsible governance
Digital Marketing MCQs, Influencer Strategy Quiz, D2C Case Study Questions, Gen AI in Marketing MCQs, Customer Decision Journey, Marketing Measurement, Crisis Communication Quiz, Structured Prompting Framework, Marketing AI MCQs, PGAS Prompting Framework, Ford Fiesta Case, Glossier Case, Brand Crisis Response, Generative AI Marketing, Marketing Measurement Metrics, CDJ MBA MCQs
