Marketers from a media website want to nudge their customers to upgrade their free membership to paid membership. To do so, they sent out two emails. Email 1 was sent out 10,000 emails to their customer base. Of which 1000 emails were opened. 500 of those consumers further clicked on some part of the email. Of those 500 customers, 20 signed up for upgrading their membership. Email 2 was sent out 10,000 emails to their customer base. Of which 600 emails were opened. 300,of those consumers further clicked on some part of the email. Of those 300 customers, 30 signed up for upgrading their membership. If you were optimizing for open rate, which would be the winner email? And what are the open rates for both the emails.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
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Marketers from a media website want to nudge their customers to upgrade their free
membership to paid membership. To do so, they sent out two emails.
Email 1 was sent out 10,000 emails to their customer base. Of which 1000 emails were opened.
500 of those consumers further clicked on some part of the email. Of those 500 customers, 20
signed up for upgrading their membership.
Email 2 was sent out 10,000 emails to their customer base. Of which 600 emails were opened.
300 of those consumers further clicked on some part of the email. Of those 300 customers, 30
signed up for upgrading their membership.
If you were optimizing for open rate, which would be the winner email? And what are the open-
rates for both the emails.
Open rate for Email 1 is 10% and open rate for Email 2 is 6%. Email 2 is a winner.
O Open rate for Email 1 is 10% and open rate for Email 2 is 6%. Email 1 is a winner.
Open rate for Email 1 is 5% and open rate for Email 2 is 3%. Email 2 is a winner.
Open rate for Email 1 is 5% and open rate for Email 2 is 3%. Email 1 is a winner.
Open rate for Email 1 is.2% and open rate for Email 2 is .3%. Email 2 is a winner.
Open rate for Email 1 is .2% and open rate for Email 2 is .3%. Email 1 is a winner.
Transcribed Image Text:Marketers from a media website want to nudge their customers to upgrade their free membership to paid membership. To do so, they sent out two emails. Email 1 was sent out 10,000 emails to their customer base. Of which 1000 emails were opened. 500 of those consumers further clicked on some part of the email. Of those 500 customers, 20 signed up for upgrading their membership. Email 2 was sent out 10,000 emails to their customer base. Of which 600 emails were opened. 300 of those consumers further clicked on some part of the email. Of those 300 customers, 30 signed up for upgrading their membership. If you were optimizing for open rate, which would be the winner email? And what are the open- rates for both the emails. Open rate for Email 1 is 10% and open rate for Email 2 is 6%. Email 2 is a winner. O Open rate for Email 1 is 10% and open rate for Email 2 is 6%. Email 1 is a winner. Open rate for Email 1 is 5% and open rate for Email 2 is 3%. Email 2 is a winner. Open rate for Email 1 is 5% and open rate for Email 2 is 3%. Email 1 is a winner. Open rate for Email 1 is.2% and open rate for Email 2 is .3%. Email 2 is a winner. Open rate for Email 1 is .2% and open rate for Email 2 is .3%. Email 1 is a winner.
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