Use the Online Consumer Purchasing Model, Figure 6.11 in Chapter 6, to assess the effectiveness of an e-mail campaign at a small website devoted to the sales of apparel to the young adult market (ages 18–26) in the United States. Assume a marketing campaign of 100,000 e-mails (at $0.25 per e-mail address). The expected click-through 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).

1. Does the campaign produce a profit?

2. What advise could you provide in order to increase the number of purchases and loyal customers?

3. What do you think could be some web design factors?

4. What communications messages would be most effective?

Awareness - Need Evaluation of Post-purchase Behavior - Loyalty Search Purchase Recognition Alternatives Market Communications Search engine Display ads E-mail Page views Stickiness Site design Acquisition; Conversion Web site hits Affiliates Social networks Blogs Mobile ads Apps 1,000 Unique visitors (1% of impressions) 50 purchases (5% rate) 12 loyal customers 100,000 Impressions 10,000 Search clicks 1,500 Likes (25% retention) Figure 6.11 An Online Consumer Purchasing Model