Question: 3. Use the Online Consumer Purchasing Model (Figure 6.11) to assess the effectiveness of an e-mail campaign at a small website devoted to the sales

3. Use the Online Consumer Purchasing Model (Figure 6.11) to assess the effectiveness of an e-mail campaign at a small website 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 clickthrough 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 would you advise doing to increase the number of purchases and loyal customers? What web design factors? What communications messages?

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