Module : E-BUSINESS AND DIGITAL MARKETING Kindly answer ALL sections THANKS

Question 1 Use the Online Consumer Purchasing Model or otherwise to assess the effectiveness of the following e-mail campaign for a small website devoted to sales of a certain item to a specific consumer group: Assume a marketing campaign of 100,000 e-mails at MUR 2.50 per e-mail address. The expected click-through rate is 5%, and the conversion to customer rate is 10%. The average sale is MUR 600, and the profit margin is 50% (the cost of the goods is MUR 300). (a) Determine whether the campaign produces a profit. (b) Suppose the loyal customer retention rate is 25% and that the loyal customers make an additional purchase during the year, determine whether the campaign produces a profit. (c) Explain how the number of purchases and loyal customers can be increased. Propose two (2) ways to do this. [8 + 6 + 6 marks] (Total: 20 Marks)