Based on the COA example in the marketing math spreadsheet, how can you purchase 1 paying customer when 1000 page views resulted in only .25 of a paying customer? a. This is an irrelevant concern.b. Because one customer purchases 2000 dollarsc. The .25 person number found in the COA example result came from 1000 page views that cost 30 dollars. The cost of acquisition of a paying customer in the example was 120 dollars. This means it required 4000 page views or 4*30 dollars. Consequently, 4000 page views ($120) results in one paying customer 4*.25.d. All are truee. All are false COA - Cost of Customer Acquisition using the traditional CPM model of adertising pricing:STEP ONE: DETERMINE THE INITIAL PROFIT ANALYSIS (FIRST PURCHASE)Example: Home Theater EquipmentCOA - Costs of acquring one paying consumerNumberCustomers1000 Home theater company pays usatoday.com 30$ for every 1000 customer pageviews (Page view means when a consumer goes to usatoday.com that has thehome theater banner ad)50 Home theater company had 5% of page viewers clicked thru. Meaning acustomer clicked on the usatoday.com banner ad to go to Home Theater's website. This rate was determined with marketing research -- tracking number ofcustomers clicking on usatoday and also those who also clicked on HomeTheater link.CPM for banner ad$30.00Click thru rate5.00%This is the percentage of those those customers who clicked-thru that alsopurchased products. Hint: how many page views would it take increase from0.25 .25 of customer to 1 whole customer?Conversion rate0.50%COA - Costs of acquring one payingconsumer120.00This is the marketing, selling, advertising costs of acquiring one customer%24

The correct option is given as,

rs c. The .25 person number found in the COA example result came from 1000 page views that cost 30 dollars. The cost of acquisition of a paying customer in the example was 120 dollars. This means it required 4000 page views or 4*30 dollars. Consequently, 4000 page views ($120) results in one paying customer 4*.25. d. All are true

rs c. The .25 person number found in the COA example result came from 1000 page views that cost 30 dollars. The cost of acquisition of a paying customer in the example was 120 dollars. This means it required 4000 page views or 430 dollars. Consequently, 4000 page views ($120) results in one paying customer 4.25. d. All are true

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

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