Define and Measure Merchant Variety's Impact on Consumers

Q: Define and Measure Merchant Variety's Impact on Consumers

This question evaluates competencies in marketplace analytics, experimental design, metric definition, and causal inference by requiring a measurable definition of merchant variety, specification of merchant- and consumer-level success metrics and guardrails, and an A/B test design; it is categorized under Analytics & Experimentation and demands both conceptual understanding and practical application. It is commonly asked to determine whether a candidate can translate product concepts into measurable KPIs, anticipate interference and operational constraints in experiments, and demonstrate rigor in powering and analyzing randomized tests that inform marketplace decisions.

Q: How do I approach Analytics & Experimentation interview questions?

Analytics & Experimentation questions require understanding of core concepts and practice. PracHub provides solutions with explanations to help you master analytics & experimentation interviews.

Question

Scenario

You are working in a two‑sided on‑demand delivery marketplace where "merchants" are restaurants/retailers and consumers browse a catalog to place orders. The product team is exploring how merchant variety (also called selection) affects consumer experience and marketplace health.

Question

Define merchant variety/selection in this marketplace. Provide an actionable, measurable definition.
List success metrics you would track at both the merchant level and the consumer level. Call out any marketplace/operational guardrails.
Describe how you would design an A/B test to evaluate a change intended to increase variety. Address unit of randomization, interference risks, metrics, power, and analysis.

Hints: Consider category breadth, inventory depth, conversion, retention, order frequency, revenue per user.

Define and Measure Merchant Variety's Impact on Consumers

Scenario

Question

Solution

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