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Online Consumer Purchasing Model Analysis

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Use the Online Consumer Purchasing Model (Figure 6.11 below) to assess the
effectiveness of an e-mail campaign at a small Web site devoted to the sales of apparel
to the ages 18–26 young adult market in the United States. Assume a marketing
campaign of 100,000 e-mails (at 25 cents per e-mail address). The expected click-
through rate is 5%, the customer conversion rate is 10%, and the loyal customer
retention rate is 25%. The average sale is $60, and the profit margin is 50% (the cost of
the goods is $30).
Create a spreadsheet model for your numerical answer AND THEN
Respond to the following questions in a Word document:
Does the campaign produce a profit?
What would you advise doing to increase the number of purchases and loyal
customers?
What Web design factors would you use to keep customers coming back and increase
traffic?
What communications messages would you convey to current and potential customer

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