Question
According to Digital Commerce 360, The Home Depot reported $10.38 billion in web sales in 2020, making them the 5th largest eCommerce site. Their conversion
According to Digital Commerce 360, The Home Depot reported $10.38 billion in web sales in 2020, making them the 5th largest eCommerce site. Their conversion rate was 4.8% and the average order value was $67. They found that their shoppers are 55.2% male, and 44.8% female.
a. (1 point) Based on the above data, how many web orders did Home Depot process in 2020?
b. (1 point) Using the orders total, how many web visits were there?
c. (1 point) What were the sales-per-visit?
d. (1 point) Assuming a 40% profit margin on sales, what is the break-even marketing cost-per-visit?
e. (3 points) How could the Home Depot design an experiment to calculate the cost per incremental click of its branded keyword search advertising? Answer in 3 sentences or less.
f. (3 points) Suppose that The Home Depot advertises on its branded keywords and pays for 40% of its search clicks. After running the experiment, The Home Depot retained 95% of its clicks. What is The Home Depot's cost per incremental click (CPIC) if it paid a cost per click of $0.20?
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