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Posted: November 13th, 2022

MIS 677 â E-Commerce â Summer 2015

MIS 677 â E-Commerce â Summer 2015 Assignment 2 - 10 PointsReference Chapter for Assignment 2: Chapter 6: E-Commerce Marketing and Advertising Concepts.jpg">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 click through 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%Answer/Respond to the following:1. Does this e-mail marketing campaign produce a profit? (Must show all work to support answer to receive credit).Total Email =$100,000.00Total cost=$ 25,000.00(Total email X .25)The expected click through rate=$ 15,000.00(Total click through X .15)The conversion to customer rate=$ 1,500.00(Conversion to customer X .10)Number of Loyal customer =$ 375.00(No of total customer who bought at least once X .25)Total Number Of Purchase=$ 1,875.00(1500 + 375)Total Sales amount =$112,500.00(Total Number of Purchase X $60)Total profit from the sales amount =$ 56,250.00(Total Sales amount X .5 )Total Net Profit =$ 31,250.00(Total profit from the sales amount - Total cost)Yes, the e-mail marketing campaign produced $31,250.00 worth of profit from the e-commerce company.2. Suggest some specific ways to increase the response rate to this e-mail marketing campaign.3. 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?

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