Online Consumer Purchasing Model

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Use the Online Consumer Purchasing Model, Figure 6.11 in Chapter
6, to assess the effectiveness of an e-mail campaign at a small website devoted
to the sales of apparel to the young adult market (ages 18–26) in the United
States. Assume a marketing campaign of 100,000 e-mails (at $0.25 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). 

  • Does the campaign
    produce a profit?
  • What advise could you
    provide in order to increase the number of purchases and loyal customers?
  • What do you think could
    be some web design factors?
  • What communications
    messages?

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