MIS 677 – E-Commerce
Assignment 2 – 10 Points
Reference Chapter for Assignment 2: Chapter 6: E-Commerce Marketing and Advertising Concepts
Use the above Online Consumer Purchasing Model and information provided to assess the effectiveness of an e-mail marketing campaign for a small-sized e-commerce company focused on sales of trendy apparel to the ages 18-26 young adult market in the United States.
For this e-mail marketing campaign:
The company purchased and used 100,000 e-mails @ 25 cents cost per e-mail address.
The expected clickthrough rate is 15%
The conversion to customer rate is 10%
The loyal customer retention rate is 25% (for the purpose of this e-mail marketing campaign assume that a loyal customer makes two purchases).
The average sale is $60.00
The profit margin is 50%
In 4-pages, 1 in margins, and double spaced, Answer/Respond to the following:
- Does this e-mail marketing campaign produce a profit? (Must show all work to support answer to receive credit).
- Suggest some specific ways to increase the response rate to this e-mail marketing campaign.
- Are e-mail marketing campaigns effective? If not, why not? If yes, why are they effective and which specific types of e-mail marketing campaigns are most effective?