- A.Customer Satisfaction (CSAT)
- B.Customer Lifetime Value (CLV)
- C.SEM and Google Ads
- D.Customer Acquisition Cost (CAC) ✓
Casper mattresses is the textbook illustration of Customer Acquisition Cost (CAC). The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.
How to think about questions like this
Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.
For Customer Acquisition Cost (CAC) specifically, look for the signal: Sets the floor on what a customer must be worth. That signal is what distinguishes the right answer from plausible-sounding alternatives.