graduate student currently taking an Management Information Systems course.

| October 22, 2018

MIS 677 – E-Commerce – Spring 2015
Assignment 2 – 10 Points
Due by end of day US
CST Sunday, July 19, 2015

Reference Chapter for Assignment 2: Chapter 6: E-Commerce Marketing and
Advertising Concepts

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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%

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).

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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