Digital Marketing Strategy | Lemonade, Hubble, Purple & Gen AI Cases | 100+ MCQs with Answers
Q1. Which pricing metric represents the cost advertisers pay for one thousand impressions?
A. CPC
B. CPA
C. CPM
D. CTR
✅ Answer: C. CPM
Q2. In the AIDA model, the letter “D” stands for:
A. Demand
B. Desire
C. Decision
D. Discovery
✅ Answer: B. Desire
Q3. In the marketing process flow, data is translated into ______ and then into the big idea.
A. Revenue
B. Insight
C. Conversion
D. Value
✅ Answer: B. Insight
Q4. The “golden triangle” on a SERP refers to:
A. Paid ads on social media
B. The eye-tracking area users focus on most
C. Organic keyword density
D. Competitor keyword overlap
✅ Answer: B. The eye-tracking area users focus on most
Q5. Behavioral economics differs from classical economics because it:
A. Assumes unlimited rationality
B. Ignores emotions in decisions
C. Recognizes systematic human biases
D. Focuses only on pricing theory
✅ Answer: C. Recognizes systematic human biases
Q6. The “bad-behavior paradox” describes:
A. Consumers acting irrationally despite awareness
B. Companies promoting harmful products
C. Regulators banning misleading ads
D. Ethical pricing dilemmas
✅ Answer: A. Consumers acting irrationally despite awareness
Q7. “Loss aversion” implies that:
A. Gains bring more satisfaction than losses
B. The pain of losing outweighs equal gains
C. Consumers prefer risk over certainty
D. Discounts always drive loyalty
✅ Answer: B. The pain of losing outweighs equal gains
Q8. Which of the following is not a component of the Media Puzzle framework?
A. Paid Media
B. Earned/Shared Media
C. Owned Media
D. Government Media
✅ Answer: D. Government Media
Q9. “MQL” stands for:
A. Marketing Quantitative Lead
B. Marketing Qualified Lead
C. Media Quality Level
D. Market Quota Limit
✅ Answer: B. Marketing Qualified Lead
Q10. “SQL” in funnel metrics stands for:
A. Sales Qualified Lead
B. Sales Quantitative Level
C. Strategy Quality Lead
D. System Query Lead
✅ Answer: A. Sales Qualified Lead
Q11. A/B testing is primarily used to:
A. Compare two versions of a campaign for performance
B. Create new customer personas
C. Segment audiences demographically
D. Conduct market surveys
✅ Answer: A. Compare two versions of a campaign for performance
Q12. Lemonade’s business model removed conflict of interest by:
A. Increasing claim rejection rate
B. Charging a fixed 25 % fee
C. Outsourcing claims to agents
D. Limiting insurance coverage
✅ Answer: B. Charging a fixed 25 % fee
Q13. The “Give Back Model” in Lemonade appeals to:
A. Cost reduction goals
B. Consumers’ ethical and altruistic motives
C. Regulatory compliance
D. Shareholder profit maximization
✅ Answer: B. Consumers’ ethical and altruistic motives
Q14. Lemonade’s annual audit report helps build:
A. Operational complexity
B. Marketing hype
C. Customer trust and transparency
D. Revenue leakage
✅ Answer: C. Customer trust and transparency
Q15. The “truth pledge” before filing a claim is an example of:
A. Behavioral nudge for honesty
B. Legal compliance formality
C. Pricing disclosure
D. Policy renewal mechanism
✅ Answer: A. Behavioral nudge for honesty
Q16. Lemonade’s dual-bot system (“Maya” and “Jim”) demonstrates:
A. AI integration across customer and back-end operations
B. Replacement of human employees entirely
C. Outsourced analytics
D. Manual claim verification
✅ Answer: A. AI integration across customer and back-end operations
Q17. “Maya” primarily handles:
A. Fraud detection
B. Customer acquisition and interfacing
C. Policy auditing
D. Risk underwriting
✅ Answer: B. Customer acquisition and interfacing
Q18. “Jim” in Lemonade’s architecture is used for:
A. Marketing automation
B. Fraud detection and claim handling
C. Policy sales
D. Customer onboarding
✅ Answer: B. Fraud detection and claim handling
Q19. Lemonade’s “Policy 2.0” is significant because it was the first:
A. Blockchain-based policy
B. Open-source insurance policy
C. AI-generated legal document
D. Global life-insurance product
✅ Answer: B. Open-source insurance policy
Q20. Lemonade’s advantage in data stems from collecting:
A. Cross-sectional data only
B. Longitudinal app-based data
C. Offline survey data
D. Partner-driven data
✅ Answer: B. Longitudinal app-based data
Q21. Hubble operates on which primary business model?
A. Marketplace aggregator
B. Subscription-based D2C
C. Freemium app service
D. Retail franchise network
✅ Answer: B. Subscription-based D2C
Q22. Hubble’s monthly churn rate of 4 % implies that annually it loses roughly:
A. 10 % customers
B. 25 % customers
C. 50 % customers
D. 75 % customers
✅ Answer: C. 50 % customers
Q23. The major financial concern for Hubble was:
A. Declining margins due to manufacturing costs
B. Increasing CAC and decreasing LTV
C. Overdependence on TV ads
D. Product recall issues
✅ Answer: B. Increasing CAC and decreasing LTV
Q24. Which type of campaign delivered more efficiency for Hubble?
A. Prospecting
B. Retargeting
C. Influencer marketing
D. TV advertising
✅ Answer: B. Retargeting
Q25. Hubble’s ROAS of 0.78 indicates:
A. Campaign profitability
B. Break-even performance
C. Loss-making advertising
D. Exceptional conversion
✅ Answer: C. Loss-making advertising
Q26. A ROAS > 1 implies:
A. The ad spend is unprofitable
B. Profitability in advertising investment
C. Under-spending in marketing
D. Declining market share
✅ Answer: B. Profitability in advertising investment
Q27. To reduce CAC, Hubble reallocated budget from:
A. TV to social
B. Prospecting to retargeting
C. Radio to print
D. Offline to events
✅ Answer: B. Prospecting to retargeting
Q28. Television campaigns for Hubble showed a positive:
A. Conversion ratio
B. Brand lift
C. Cost per lead
D. LTV decline
✅ Answer: B. Brand lift
Q29. “Lookalike audiences” in digital marketing are mainly used for:
A. Competitor analysis
B. Prospecting similar users
C. Frequency management
D. Retention analytics
✅ Answer: B. Prospecting similar users
Q30. Oversaturation in retargeting should be avoided through:
A. Random targeting
B. Frequency management
C. Budget expansion
D. Conversion suppression
✅ Answer: B. Frequency management
Q31. Hubble’s key O2O challenge originated because:
A. Eye doctors controlled prescriptions
B. Online payments were restricted
C. Delivery networks failed
D. Customers preferred bulk orders
✅ Answer: A. Eye doctors controlled prescriptions
Q32. To reduce friction, Hubble considered:
A. Discounts only
B. Partnering with doctors and digitizing prescriptions
C. Limiting product range
D. Outsourcing marketing
✅ Answer: B. Partnering with doctors and digitizing prescriptions
Q33. Purple initially achieved growth through:
A. Price undercutting
B. Viral video marketing
C. Celebrity endorsements
D. Bulk retail orders
✅ Answer: B. Viral video marketing
Q34. The “raw-egg test” was part of Purple’s:
A. Product durability demonstration
B. Warranty terms
C. Competitive benchmarking
D. Sleep-quality survey
✅ Answer: A. Product durability demonstration
Q35. Only 12 % of mattress purchases being online led Purple to:
A. Increase e-commerce spending
B. Expand into offline retail
C. Stop advertising
D. Move to luxury segment
✅ Answer: B. Expand into offline retail
Q36. Purple’s O2O strategy aimed for a sales mix of:
A. 100 % online
B. 70 % online – 30 % in-store
C. 50 % each
D. 80 % offline – 20 % online
✅ Answer: B. 70 % online – 30 % in-store
Q37. Purple partnered with retail chains like:
A. Amazon
B. Mattress Firm
C. IKEA
D. Sleep Well
✅ Answer: B. Mattress Firm
Q38. O2O marketing challenges include:
A. Measuring offline attribution
B. Digital keyword bidding
C. CRM automation
D. Product packaging design
✅ Answer: A. Measuring offline attribution
Q39. A “geo-lift study” helps in:
A. Measuring regional ad impact
B. Determining CPC rates
C. Estimating organic reach
D. Tracking website heatmaps
✅ Answer: A. Measuring regional ad impact
Q40. In attribution, “Last Click” model gives credit to:
A. First touchpoint
B. All touchpoints equally
C. Final touchpoint before conversion
D. Most expensive ad
✅ Answer: C. Final touchpoint before conversion
Q41. “First Click” attribution emphasizes:
A. Awareness creation
B. Conversion optimization
C. Pricing efficiency
D. Lead scoring
✅ Answer: A. Awareness creation
Q42. “Linear” attribution assigns:
A. Equal weight to all touchpoints
B. More weight to first click
C. More weight to last click
D. Weight by spend value
✅ Answer: A. Equal weight to all touchpoints
Q43. “Position-based” attribution is best suited for:
A. Simple one-click purchases
B. Complex decision journeys
C. Impulse buys
D. Low-value products
✅ Answer: B. Complex decision journeys
Q44. In a time-decay model, recent interactions receive:
A. Less credit
B. More credit
C. Equal credit
D. No credit
✅ Answer: B. More credit
Q45. A data-driven attribution model requires:
A. Small sample size
B. Rich multi-channel data
C. Manual tagging
D. Offline feedback only
✅ Answer: B. Rich multi-channel data
Q46. The “Messaging House” framework includes which three key parts?
A. Roof, Pillars, Foundation
B. Idea, Budget, Execution
C. Market, Message, Media
D. Persona, Plan, Purpose
✅ Answer: A. Roof, Pillars, Foundation
Q47. In the Messaging House, the “Roof” represents:
A. A unifying one-line message
B. Reason to Believe
C. Audience Persona
D. Promotional slogan only
✅ Answer: A. A unifying one-line message
Q48. The “Foundation” of the Messaging House is the:
A. Value Pillar
B. Reason to Believe (RTP)
C. Creative Theme
D. Customer Pain Point
✅ Answer: B. Reason to Believe (RTP)
Q49. A “Proto Persona” helps marketers:
A. Forecast sales revenue
B. Represent target audience archetypes
C. Design logos
D. Optimize budgets
✅ Answer: B. Represent target audience archetypes
Q50. The Holy Grail of Marketing aligns with the use of:
A. Mass media buying
B. Proto Persona and Messaging House integration
C. Random ad targeting
D. Price discount tactics
✅ Answer: B. Proto Persona and Messaging House integration
Q51. The term “Direct-to-Consumer (D2C)” means:
A. Selling through intermediaries
B. Selling directly to end customers without middlemen
C. Outsourcing distribution
D. Selling only via retailers
✅ Answer: B. Selling directly to end customers without middlemen
Q52. In digital marketing, CAC refers to:
A. Customer Acquisition Cost
B. Conversion Allocation Channel
C. Click Attribution Count
D. Customer Awareness Campaign
✅ Answer: A. Customer Acquisition Cost
Q53. LTV represents:
A. Lead Traffic Volume
B. Lifetime Value
C. Loyalty Tracking Variable
D. Long-Term Volume
✅ Answer: B. Lifetime Value
Q54. The ratio LTV/CAC indicates:
A. Market share growth
B. Unit economics health
C. Customer complaint rate
D. Inventory cost
✅ Answer: B. Unit economics health
Q55. A healthy LTV/CAC ratio is generally considered to be above:
A. 0.5
B. 1.0
C. 2.0
D. 3.0
✅ Answer: D. 3.0
Q56. Behavioral mechanisms in Lemonade’s model primarily discourage:
A. Overpricing
B. Fraud and cheating
C. Underwriting errors
D. Customer churn
✅ Answer: B. Fraud and cheating
Q57. Lemonade’s “good cop–bad cop” dynamic involves:
A. Charity + AI scrutiny
B. Sales + Marketing
C. HR + Finance
D. Legal + PR
✅ Answer: A. Charity + AI scrutiny
Q58. The “Data Stratum” advantage of Lemonade is due to:
A. Paper-based forms
B. App-based longitudinal data
C. Manual reporting
D. Outsourced analytics
✅ Answer: B. App-based longitudinal data
Q59. Hubble’s core challenge was related to:
A. Customer acquisition
B. Customer retention
C. Product quality
D. Manufacturing
✅ Answer: B. Customer retention
Q60. The 18-month data window for Hubble’s LTV suggests:
A. Long-term stability
B. Tentative financial conclusions
C. Perfect predictability
D. Saturated market
✅ Answer: B. Tentative financial conclusions
Q61. The term “retargeting” refers to:
A. Showing ads to new visitors only
B. Showing ads again to previous visitors or site abandoners
C. Random ad placements
D. Content marketing campaigns
✅ Answer: B. Showing ads again to previous visitors or site abandoners
Q62. Which of the following is not a CAC reduction strategy?
A. Retargeting optimization
B. Audience segmentation
C. Oversaturation of ads
D. Lookalike audiences
✅ Answer: C. Oversaturation of ads
Q63. ROAS stands for:
A. Return on Advertising Spend
B. Rate of Ad Spend
C. Ratio of Average Sales
D. Real Online Ad System
✅ Answer: A. Return on Advertising Spend
Q64. A ROAS of less than 1 indicates:
A. Profitable campaign
B. Unprofitable campaign
C. Break-even
D. High LTV
✅ Answer: B. Unprofitable campaign
Q65. The biggest barrier for Hubble’s O2O expansion was:
A. Inventory shortage
B. Prescription gatekeeping by eye doctors
C. High product pricing
D. Delivery inefficiency
✅ Answer: B. Prescription gatekeeping by eye doctors
Q66. Purple’s early success came mainly from:
A. Paid celebrity partnerships
B. Organic viral video marketing
C. Newspaper ads
D. Email campaigns
✅ Answer: B. Organic viral video marketing
Q67. The purpose of Purple’s retail partnerships was to:
A. Replace e-commerce
B. Allow in-person product experience
C. Increase ad impressions
D. Reduce cost of production
✅ Answer: B. Allow in-person product experience
Q68. The biggest challenge in measuring O2O success is:
A. Attribution of offline sales to online campaigns
B. Product diversification
C. Store layout optimization
D. Packaging costs
✅ Answer: A. Attribution of offline sales to online campaigns
Q69. Probabilistic attribution helps in:
A. Deterministic click tracking
B. Estimating contribution of untracked touchpoints
C. Cost allocation only
D. Avoiding cookies
✅ Answer: B. Estimating contribution of untracked touchpoints
Q70. Which attribution model suits longer purchase journeys best?
A. Time Decay
B. Last Click
C. First Click
D. Linear
✅ Answer: A. Time Decay
Q71. “Data-driven attribution” differs from others because it:
A. Uses arbitrary weights
B. Builds custom models using machine learning
C. Ignores user behavior
D. Uses equal weighting
✅ Answer: B. Builds custom models using machine learning
Q72. In marketing analytics, “conversion” means:
A. Any action meeting campaign objective
B. Page view
C. Bounce rate
D. Ad impression
✅ Answer: A. Any action meeting campaign objective
Q73. The AIDA model maps directly to:
A. Customer Decision Journey
B. Financial reporting
C. Pricing models
D. IT operations
✅ Answer: A. Customer Decision Journey
Q74. AIDA’s “Action” stage corresponds to:
A. Awareness generation
B. Final purchase or sign-up
C. Interest measurement
D. Post-sale feedback
✅ Answer: B. Final purchase or sign-up
Q75. The integration of AI in marketing allows:
A. Better personalization and efficiency
B. Removal of creative elements
C. Only cost increase
D. Manual analysis
✅ Answer: A. Better personalization and efficiency
Q76. The “IDA Jet” Gen AI exercise was designed to teach:
A. AI ethics
B. Messaging House and campaign integration
C. Coding with AI
D. Financial analytics
✅ Answer: B. Messaging House and campaign integration
Q77. In the Messaging House, Value Pillars represent:
A. Core brand promises or differentiators
B. Budget allocations
C. Market segmentation variables
D. Customer feedback loops
✅ Answer: A. Core brand promises or differentiators
Q78. The Reason to Believe (RTP) underpins:
A. Product pricing
B. Credibility of value propositions
C. Branding colors
D. Competitor analysis
✅ Answer: B. Credibility of value propositions
Q79. Proto Personas are typically based on:
A. Real data and behavioral insights
B. Random sampling
C. Internal HR feedback
D. Product testing reports
✅ Answer: A. Real data and behavioral insights
Q80. “Media Planning” aligns with the Holy Grail of marketing by:
A. Choosing channels that reach the right audience at the right time
B. Random ad placements
C. Spending maximum budget
D. Selecting only offline channels
✅ Answer: A. Choosing channels that reach the right audience at the right time
Q81. In marketing, “Owned Media” refers to:
A. Channels controlled by external agencies
B. Brand-controlled platforms like websites and apps
C. Paid influencer marketing
D. PR mentions
✅ Answer: B. Brand-controlled platforms like websites and apps
Q82. Earned or Shared Media primarily includes:
A. Company-owned content
B. User-generated and shared content
C. Paid advertisements
D. Sponsored posts
✅ Answer: B. User-generated and shared content
Q83. Ad blockers have pushed marketers toward:
A. Paid media
B. Premium ad-free experiences
C. Contextual and native advertising
D. Print media
✅ Answer: C. Contextual and native advertising
Q84. Paying for ad-free content indicates consumers’ preference for:
A. Distraction-free experiences
B. Maximum exposure
C. Brand loyalty
D. Personalized discounts
✅ Answer: A. Distraction-free experiences
Q85. The term “SERP” stands for:
A. Search Engine Response Page
B. Search Engine Results Page
C. Search Engagement Rate Program
D. Sponsored Engagement Ranking Page
✅ Answer: B. Search Engine Results Page
Q86. “Ad ranking” on search platforms is influenced by:
A. Bid amount and ad quality score
B. Keyword length only
C. Random placement
D. Display image
✅ Answer: A. Bid amount and ad quality score
Q87. “Cost Per Click (CPC)” model charges advertisers when:
A. Ads are displayed
B. Users click on ads
C. Sales are made
D. Impressions are served
✅ Answer: B. Users click on ads
Q88. The “Attention” stage in AIDA focuses on:
A. Generating awareness
B. Encouraging purchase
C. Driving loyalty
D. Customer support
✅ Answer: A. Generating awareness
Q89. “Interest” in AIDA corresponds to:
A. Product curiosity and engagement
B. Final decision
C. Retention
D. Pricing evaluation only
✅ Answer: A. Product curiosity and engagement
Q90. Translating insight into a “big idea” means:
A. Using analytics for creative strategy
B. Focusing only on cost control
C. Expanding operations
D. Replacing campaigns
✅ Answer: A. Using analytics for creative strategy
Q91. The integration of data and creativity defines:
A. Modern marketing effectiveness
B. Traditional marketing
C. Mass advertising
D. HR analytics
✅ Answer: A. Modern marketing effectiveness
Q92. Ad blockers primarily impact:
A. Paid media visibility
B. SEO ranking
C. Owned media cost
D. Organic traffic
✅ Answer: A. Paid media visibility
Q93. The conflict of interest in traditional insurance existed because:
A. Profits depended on rejecting claims
B. Companies underpriced policies
C. Agents earned fixed commissions
D. Regulators capped margins
✅ Answer: A. Profits depended on rejecting claims
Q94. Lemonade’s charitable “Give Back” model reduced fraud by:
A. Appealing to community ethics
B. Offering cashback
C. Imposing penalties
D. Increasing premiums
✅ Answer: A. Appealing to community ethics
Q95. In Purple’s case, attribution issues arose because:
A. Bulk retailer orders obscured campaign linkage
B. Inaccurate pixel tracking
C. Lack of analytics tools
D. Low ad budgets
✅ Answer: A. Bulk retailer orders obscured campaign linkage
Q96. The “right message” component of the Holy Grail implies:
A. Creative relevance
B. Discounted offers
C. Product bundling
D. Celebrity endorsements
✅ Answer: A. Creative relevance
Q97. “Right person” in the Holy Grail context represents:
A. The most profitable audience segment
B. Random viewers
C. Competitor audience
D. Employees
✅ Answer: A. The most profitable audience segment
Q98. “Right time” in the Holy Grail means:
A. Delivering messages at contextually relevant moments
B. Flooding users with ads
C. Posting only on weekends
D. Ignoring time zones
✅ Answer: A. Delivering messages at contextually relevant moments
Q99. In Gen AI marketing applications, prompts should be:
A. Specific and contextual
B. Randomly generated
C. Emotionally neutral
D. Vague for creativity
✅ Answer: A. Specific and contextual
Q100. The IDA Jet exercise links AI usage with:
A. End-to-end marketing planning
B. Only creative generation
C. Data reporting
D. Media budgeting
✅ Answer: A. End-to-end marketing planning
MBA Marketing MCQs, Strategy MCQs, Lemonade case study, Hubble D2C quiz, Purple O2O, Attribution models, Behavioral economics, Generative AI in marketing, AIDA model, MQL SQL metrics
