Digital Business Strategies: Online Consumer Purchasing Model

MGT-429 Digital Bus. Strategies & ApplicationsWeek 5 – Online Consumer Purchasing Model**** COMPLETE ASSIGNMENT DETAILS ATTACHED *****Two Parts to this assignment:Part I: Answer each the DQ?s in 50 words or more (be specific):Why do you think the mobile payment systems that have become trendy in Asia have been slower to impact in the United States? What can be done to make this system more popular?Provide an example of behavioral targeting from your own web browsing or shopping experiences. Explain why it was or was not successful, using concepts from class. Part II:Write a paper of 750 words or more that discusses the assignment – details attached, refer to attached Word doc.
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MGT-429 Digital Bus. Strategies & Applications
Week 5 – Online Consumer Purchasing Model
Two Parts to this assignment:
Part I:
Answer each the DQ?s in 50 words or more:
Why do you think the mobile payment systems that have become trendy in Asia have been slower to
impact in the United States? What can be done to make this system more popular?
Provide an example of behavioral targeting from your own web browsing or shopping
experiences. Explain why it was or was not successful, using concepts from class.
Part II:
Use the Online Consumer Purchasing Model, Figure 6.11 below, 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).
?
?
?
?
Does the campaign produce a profit?
What advise could you provide in order to increase the number of purchases and loyal
customers?
What do you think could be some web design factors?
What communications messages would be most effective?
Write a paper of 750 words or more that discusses the questions above.
There is a lengthy path from simple online ad impressions, Web site visits, and page views to the
purchase of a product and the company making a profit (see Figure 6.11). You first need to make
customers aware of their needs for your product and somehow drive them to your Web site. Once
there, you need to convince them you have the best value?quality and price?when compared to
alternative providers. You then must persuade them to trust your firm to handle the transaction (by
providing a secure environment and fast fulfillment). Based on your success, a percentage of customers
will remain loyal and purchase again or recommend your Web site to others.

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