Demo questions

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Below are some sample questions for each level, which were previously used in our exams. We recommend that you answer them to the best of your knowledge. You can then check the correct answers by downloading the answer key at the bottom of this page.

CMX Level 1

CMX Level 1

Finance & Accounting

Last year, one company had total sales of $100 million. They had $60 million of costs with raw materials, $25 million for labour and $10 million for additional costs and expenses. What would be the effect of reducing the cost of materials by 2%?

A) Net income increases by 24%.
B) Net income decreases by 2%.
C) Net income increases by 2%.
D) Net income increases by 28%.
E) None of the other alternatives.

CMX Level 1

Sales & Merchandising

On a product page, which of the following actions is the best to increase the conversion rate?

A) Adding a link to a questionnaire about the product
B) Offering complementary products as recommendations
C) Having a beautiful page with different buttons to call the attention of the prospect
D) Hiding customer reviews, as they are too artificial
E) Calling the attention of the prospect with temporal benefits such as free shipping only until a predetermined time.

CMX Level 1

Digital Marketing

What does CTR mean?

A) Click-through rate – Total views of an ad.
B) Click-through rate – Percentage of clicks on an ad according to the number of appearances.
C) Clicks to review – Total clicks a customer needs to do in order to make a review of the product.
D) Conversion total rate – Percentage of total orders from both mobile and desktop, vs total sessions.

CMX Level 1

Technology & Data

Which of the following is an example of a PWA?

A) A native mobile application for iOS and Android built to increase the conversion rate of an ecommerce, through additional features not supported in a regular website.
B) An application built to improve mobile experience on the web, whilst having reduced costs and time to market compared to native apps.
C) An application built for desktop only to be downloaded and provides an extensive range of additional features than a regular website.
D) An ecommerce platform developed to provide additional features for mobile users, whilst reducing costs for retail.

CMX Level 1

Supply Chain & Operations

Which of the following is not a best practice in Supply Chain?

A) The utilisation of metrics for performance evaluation.
B) Having excess inventory for easier planning.
C) Performing risk management activities throughout the overall process.
D) Create tools and processes for continuous improvement.
E) Gathering data for a better decision-making process.

CMX Level 2

CMX Level 2

Sales & Merchandising

A large and well-known grocery group has refined its CRM database, by making it more robust and including information of past and recurring customers. They are, however, facing some business challenges in the past 9 months. In order to attract new prospects, they had a higher spend on paid campaigns compared to historically, which led to a 20% growth in total sessions. Their conversion rate grew 15%, due to a drop of 5% in their overall product prices. However, the number of items per order declined by 24%.

Consider that this market was projected to grow approximately 1% in this same period. Please select the 3 statements below that most accurately fit this operation.

I – Even though they are experiencing a drop in their items per order, the growth in conversion rate and sessions is enough to make their revenue increase more than the market, which indicates that the strategy is being successful.
II – The strategy is successful in attracting new customers to the CRM database. However, they might need to reevaluate as soon as possible, as the paid campaigns investment is not being offset by their revenue growth, which could harm the business profitability in the long term.
III – Leveraging artificial intelligence initiatives using customers’ previous behaviors to recommend new items could be a successful action to be taken.
IV – The company should invest in SEO strategies, such as increasing its authority. By enhancing their organic traffic, they would be able to reduce their investment in paid campaigns in the short term, thus protecting their margin.
V – Adapting their website for a more customer-centric approach allows the user to feel more comfortable throughout the entire journey. This would be an important strategy to increase the conversion rate.
VI – Progressive discounts for higher AOVs and the creation of bundles for this particular scenario would be key activities to overcome their challenge.

Pick the option with valid statements.
A) I, III and IV
B) I, IV and VI
C) I, V and VI
D) II, IV and V
E) II, III and VI

CMX Level 2

Finance & Accounting

A company with $40,000,000 in yearly net revenue and 50% of COGS is adding a new business unit to its operations. To start this new unit they are planning to invest 5% of their current business gross profit. According to their projections for this new business unit, they expect $1,600,000 in net revenue in the first year, with a growth of 20% YoY for the first 5 years. The COGS of this new unit is expected to be the same as the current core business and the expenses related to this new business unit account for 20% of its net revenue in all years.

Taking that into account, how long would it take for them to pay back the initial investment? Please do not consider any interest rate, taxes, depreciation, and amortization.

A) The investment is most likely paid back at the beginning of the first year.
B) The investment is most likely paid back at the end of the first year.
C) The investment is most likely paid back at the beginning of the second year.
D) The investment is most likely paid back at the end of the second year.
E) The investment is most likely paid back after the third year.

CMX Level 2

Technology & Data

Following an ecommerce platform migration, a fashion company experienced a sharp increase in bounce rates and a sharp drop in conversion rates, affecting 30% of their paid campaigns. Considering that their volume of sessions remained the same, define the 3 best alternatives to diagnose this scenario and take actions to tackle the challenges in the short term.

I – Platform migrations are accompanied by front end modifications. The interactive widgets, images, and graphic elements are now heavier and unattractive to the audience, leading to a performance drop. The company should perform A/B testings compared to the layout prior to migration, to evaluate the best performing settings.
II – When setting up the campaigns, the company made incorrect adjustments in the target audiences that they were segmenting. They should analyse the previous campaigns to redirect the budget to the correct audience.
III – The issue is related to a low page load speed, which is a common error in low performing ecommerce platforms, due to the nature of their architecture. The company should either migrate back or implement tools to monitor speed performance.
IV – Platform migrations are accompanied by huge operational setup workloads. Therefore, some errors occur in simple URL redirections of the campaigns, sometimes leading to broken links, causing a drop in performance. To tackle this, the company should evaluate all associated links and perform new redirects.
V – For such performance issues, when the products were created in the catalog, the company could have missed the inclusion of inventory or integrations, leading to stockout at the product page. This would be solved by analysing the campaigns experiencing this issue and adjusting the products inventory.
VI – A possibility is that the landing pages of the campaigns do not match with the communication sent, leading to incorrect products or prices. This would lead to a bad experience, thus increasing bounce rate and decreasing conversion. To tackle this, all assets should be reviewed and correctly set according to the products offered.
VII – A common mistake in platform migrations is the incorrect configuration of payment options, leading to unfeasible or unattractive methods. To overcome this, the company should add new methods that are more likely to be utilised by the target audience.

Pick the option with the correct hypotheses and actions to be taken.
A) I, II and III
B) I, IV and V
C) II, V and VII
D) III, IV and VI
E) IV, V and VI

CMX Level 2

Digital Marketing

Consider a global electronics retail store that operates from a single domain eletronicsretail.com, offering multiple languages and has had its organic traffic share decrease over the past 6 months. Review the below statements regarding actions to take to overcome this business challenge.

I – It is crucial to understand how much of the total traffic comes from each sales region. Once this is analysed, you should perform additional paid media campaigns in the regions with the lower traffic share, aiming to increase their conversion.
II – To positively impact your SERP ranking, authority and traffic share, you should build a content strategy that develops linkable content including articles and infographics.
III – In order to diagnose the operation, you should take a deeper look in all of the key pillars of Search Engine Optimisation, i.e. Mobile Score, URL Structure and Website Rendering Speed.
IV – To improve organic traffic share using SEO best practices, you should aim towards a longer page load time, by adding high quality videos and images, which would improve content.
V – In order to improve SERP ranking, you should discourage big players, i.e. manufacturers, from redirecting links to your website. This is an artificial way to improve ranking, therefore being unsuccessful in the long term even if results are seen in the short term.
VI – Developing a blog strategy to generate regular content aims to strengthen domain authority and improve SERP ranking, thus being an important strategy to increase organic traffic share.
VII – To improve SERP ranking of a product page selling a phone, a better URL structure would be electronicsretail.com/en/phone instead of electronicsretail.com/phone-en

Pick the option with the correct statements.
A) I, II and V
B) II, III and VI
C) II, VI and VII
D) III, IV and V
E) III, VI and VII

CMX Level 2

Supply Chain & Operations

An electronics retail company has a long-term omnichannel strategy and has heavily invested in brick-and-mortar stores with the addition of the fulfillment modalities of ship-from-store and pick-up in store. Currently, their online revenue represents 12% of their business and they do not have a distribution centre, hence all ecommerce transactions are shipped directly from the stores. A few of these stores have a negative EBITDA and all of the stores are situated in the same geographical region. The stores have different sizes and the cost per square metre (already including inventory, rent, staff, etc) is the same throughout the whole region. Which of the following statements is the best to improve the operational efficiency of the company?

A) Close all stores with negative EBITDA, regardless of each of their revenue shares for each fulfilment modality.
B) Build one distribution centre for the region and utilise the stores as product demo stores.
C) Reduce the size of the stores with negative EBITDA and increase the size of the other stores, as a way to direct additional revenue to them, thus increasing profit.
D) From the stores with negative EBITDA, transform the ones with a high revenue share from ship-from-store into dark stores and close the others.
E) Transform all stores with negative EBITDA into dark stores, regardless of each of their revenue shares for each fulfillment modality.

CMX Level 3

CMX Level 3

Digital Marketing

Spark Electrical is an electronic goods chain in your country that operates in B2C and B2B models, with B2C being their more established model. They operate with physical stores and two different ecommerce operations, one for B2C and another for B2B. Their current sales representatives from the physical stores also perform reactive sales and social selling for their B2B customers. You are presented with the following sales data regarding their channels in the past 3 months.

CHANNEL

REVENUE

Physical stores – B2C

$3,276,000

Physical stores – B2B

$819,000

Ecommerce – B2C

$2,820,000

Ecommerce – B2B

$180,000

They also present you with the following metrics regarding their two ecommerce operations:

METRIC

B2C CHANNEL

B2B CHANNEL

Sessions

970,000

960,000

AOV

$150

$625

Cart abandonment rate

65.43%

99.46%

Conversion rate

1.95%

0.03%

Upon further research, you analysed their results in Google search, and identified that both B2C and B2B websites appeared when searching for ‘Spark Electrical’, with B2B appearing first. Considering this scenario, what is your diagnosis of the situation? What actions would you take in the short term and in the long term to improve Spark Electrical’s sales performance, in both B2C and B2B channels?

CMX Level 3

Finance & Accounting

A medium-size retailer has been highly impacted by the COVID-19 pandemic. The revenue coming from their digital business is around 20% of their total revenue, whilst their competitors have approximately 10% of their total revenue coming from online. Due to the impact of the pandemic, their total revenue fell by approximately 50%, both due to lower demand and the closing of their brick and mortar stores. What measures would you take so that they will be able to prevent bankruptcy and keep their business afloat?

CMX Level 3

Sales & Merchandising

Emporium Lux is a top of mind luxury retail brand who is the market leader in Europe. They are specialised in food & beverage, with physical stores and a large ecommerce operation. They already provide pick-up in-store, ship from store, dark stores and curbside pick-up. Their company is famous for having a wide variety of good wine labels, craft beers and related high-end foods, such as premium cheeses and nuts. However, the financial director claims that the company is not being able to grow at their desired speed and they are being pressured by the board towards digital transformation to create new streams of revenue. What is your proposal to accelerate their growth rate and how should they tackle this? Please state at least 3 proposals and why they would work.

CMX Level 3

Technology & Data

Little Spoon is a food company with physical stores throughout the whole country. They intend to implement a headless App to offer the fulfillment modalities of pick up in store, ship from stores with a fast delivery service and in store consumption. From the point of view of technology and their ecommerce architecture, what would be your recommendations to ensure they are successful in delivering this project? Please cite real and detailed business cases to endorse your recommendations.

CMX Level 3

Supply Chain & Operations

Happy Tooth is a retail company in the professional Oral Care segment, with a product portfolio of over 20 different categories. The company operates with approximately 20,000 SKUs, divided into a large number of different suppliers. Your major supplier represents 11% of your revenue and operates with 3,000 SKUs, split into 5 different categories. Please find on the table below some information about the products of this particular supplier.

CATEGORY

NUMBER OF SKUS

REVENUE PER DAY

$ GMV IN INVENTORY

SLA FROM SUPPLIER

Dentistry & Aesthetics

180

$ 15,800

$ 600,000

20 days

Prosthodontics

80

$ 6,900

$ 525,000

45 days

Orthodontics

2,700

$ 4,400

$ 800,000

35 days

Biosafety

80

$ 6,900

$ 525,000

45 days

Prevention & Prophylaxis

10

$ 280

$ 17,000

45 days

With this information at hand and taking into account that the inventory curve per category is not necessarily even amongst all SKUs, how should you define your purchasing plan for the next 3 months? Consider that you have a contract agreement with this supplier, in which you have to purchase $2,450,000 in the next three months, being 26% this month, 33% next month and 41% in the third month.

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