What is a cookie in the context of advertising and e-commerce?

• A. A small file saved on computers to store user preferences and information about user interactions with websites.
• B. A token that replaces all browser cookies.
• C. A type of banner ad displayed on websites.
• D. An external server storage method that replaces cookies entirely.

Answer: (B)

In advertising and e-commerce, a cookie is essentially a small data item that helps a website remember who you are and what you did on prior visits, so experiences can be personalized and ads can be targeted. You can think of this data as a token that identifies a user across pages and sessions, carrying information about preferences, interactions, and the visit history. This token approach—using a single identifier to stand in for the user’s activity across sites—explains why the option describing a token that replaces cookies is presented as the best choice: it emphasizes the role of cookies as an identifying mechanism that enables consistent tracking and personalized experiences across sessions.