Background Info A "Visit" is an instance of a person coming to a website A "visitor" is a person who conducts a visit on a website An "Order" is an instance of someone making a purchase "Conversion rate" is defined as the number or orders per visit The home page of a web site can be "split" into two versions ("A" and "B") that have different characteristics (e.g. layout, products, etc.) These different versions can then be shown to different visitors on a random basis For example, 75% of visitors would see version A and 25% of visitors would see version B Scenario You are determining which home page version is the best choice for the site to maximize the number of orders. A two week split test was set up where visitors were randomly (but not necessarily equally) assigned to one home page or another, and the number of visitors to each homepage and the related orders were accurately recorded by day. The additional traffic on the 7th and 14th is due to some banner ads running on MSN on those particular days We have a 1 year contract with MSN, so we will continue to get this traffic Please be sure to look over the data carefully.

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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Background Info A "Visit" is an instance of a person coming to a website A "visitor" is a person who conducts a visit on a website An "Order" is an instance of someone making a purchase "Conversion rate" is defined as the number or orders per visit The home page of a web site can be "split" into two versions ("A" and "B") that have different characteristics (e.g. layout, products, etc.) These different versions can then be shown to different visitors on a random basis For example, 75% of visitors would see version A and 25% of visitors would see version B Scenario You are determining which home page version is the best choice for the site to maximize the number of orders. A two week split test was set up where visitors were randomly (but not necessarily equally) assigned to one home page or another, and the number of visitors to each homepage and the related orders were accurately recorded by day. The additional traffic on the 7th and 14th is due to some banner ads running on MSN on those particular days We have a 1 year contract with MSN, so we will continue to get this traffic Please be sure to look over the data carefully. 

Scenario
You are determining which home page version is the best choice for the site to maximize the number of orders.
A two week split test was set up where visitors were randomly (but not necessarily equally) assigned to one home page or another, and the number of visitors to each
homepage and the related orders were accurately recorded by day.
The additional traffic on the 7th and 14th is due to some banner ads running on MSN on those particular days
We have a 1 year contract with MSN, so we will continue to get this traffic
Please be sure to look over the data carefully.
4/6/2007
5/6/2007
6/6/2007
7/6/2007
8/6/2007
9/6/2007
10/6/2007
11/6/2007
12/6/2007
13/6/2007
14/6/2007
15/6/2007
Homepage Version A
Visits
Orders
7,823
5,611
5,092
16,407
4,072
2,802
3,277
8,159
5,331
5,217
15,922
4,360
796
541
533
1,001
416
268
323
808
517
542
1,099
415
Homepage version B
Visits
Orders
2,910
3,049
2,775
3,266
1,980
1,512
1,408
2,709
2,802
2,720
3,119
2,091
289
262
280
191
188
129
134
258
258
272
205
182
Questions
A) What is the overall conversion rate for Homepage version A?
B) What is the overall conversion rate for Homepage version B?
C) Which version of the home page would you recommend rolling out with to maximize the number of orders?
D) What % more orders can you expect to get by using the version you answered in #3 above, vs the other version?
E) What is a little strange about this data? Why is this happening?
Please show all your analysis, and specify any assumptions you make.
Transcribed Image Text:Scenario You are determining which home page version is the best choice for the site to maximize the number of orders. A two week split test was set up where visitors were randomly (but not necessarily equally) assigned to one home page or another, and the number of visitors to each homepage and the related orders were accurately recorded by day. The additional traffic on the 7th and 14th is due to some banner ads running on MSN on those particular days We have a 1 year contract with MSN, so we will continue to get this traffic Please be sure to look over the data carefully. 4/6/2007 5/6/2007 6/6/2007 7/6/2007 8/6/2007 9/6/2007 10/6/2007 11/6/2007 12/6/2007 13/6/2007 14/6/2007 15/6/2007 Homepage Version A Visits Orders 7,823 5,611 5,092 16,407 4,072 2,802 3,277 8,159 5,331 5,217 15,922 4,360 796 541 533 1,001 416 268 323 808 517 542 1,099 415 Homepage version B Visits Orders 2,910 3,049 2,775 3,266 1,980 1,512 1,408 2,709 2,802 2,720 3,119 2,091 289 262 280 191 188 129 134 258 258 272 205 182 Questions A) What is the overall conversion rate for Homepage version A? B) What is the overall conversion rate for Homepage version B? C) Which version of the home page would you recommend rolling out with to maximize the number of orders? D) What % more orders can you expect to get by using the version you answered in #3 above, vs the other version? E) What is a little strange about this data? Why is this happening? Please show all your analysis, and specify any assumptions you make.
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