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Business

Marketing

If you

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

If you have a $3000 budget, your average CPC is $0.50, and your conversion rate is 5%, what is your current CPA?

Expert Solution

Step 1

Talking about this question then, the budget of the company is 3000 dollars and conversion rate is 5percent . It means out of 100, onky 5 times sales will happen.

This means for 1 sale happen out of 20.

Now, cost = 0.5 multiplied by 20 = 10 dollars.

Step by step

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