Chapter 8: Application Software Exercise


Spreadsheet Exercise: Analyzing Web Site Visitors


Your firm, Marina Clothiers, makes casual pants, shirts, and other clothes for both men and women. Your firm has been attempting to increase the number of online customers by placing advertising banners for your Web site at other Web sites. When users click on these banner ads, they automatically are transported to your Web site. Data from your advertising campaign are summarized in the weekly Marketing Trends Reports (MTR) produced by your Web site analysis software, which appears on the Laudon Web site for Chapter 8.

  • Visitors are the number of people who visited your Web site by clicking on a banner ad for your site that was placed on an affiliated Web site.

  • Shoppers are the number of visitors referred by banner ads who reached a page in your Web site designated as a shopping page.

  • Attempted buyers are the number of potential buyers referred by banner ads who reached a page at your Web site designated for summarizing and paying for purchases.

  • Buyers are the number of buyers referred by banner ads who actually placed an order from your Web site.

  • Source indicates the specific Web site from which visitors came to your Web site.



          In trying to increase the number of online customers, you must determine your Web site’s success in converting visitors to actual buyers. You must also look at the abandonment rate— the percentage of attempted buyers who abandon your Web site just as they were about to make a purchase. Low conversion rates and high abandonment rates are indicators that a Web site is not very effective. You also must identify likely Web site partners for a new advertising campaign. Use the MTR with your spreadsheet software to help you answer the following questions. Include a graphics presentation to support your findings:

  1. What are the total number of visitors, shoppers, attempted buyers, and buyers at your Web site?

  2. Which sources provided the highest conversion rate to buyers at your Web site—that is, the percentage of visitors from a previous site who become buyers on your site? What is the average conversion rate for your Web site?

  3. Which sources provided the highest abandonment rate at your Web site—that is, the percentage of attempted buyers who abandoned their shopping cart at your Web site before completing a purchase. What is the average abandonment rate for your Web site?

  4. On which Web sites (or types of Web sites) should your firm purchase more banner ads?