In Order for Online Retailers to Convert Website Visitors to Buyers

question 55

Multiple Choice

In order for online retailers to convert website visitors to buyers they must _____.

• A) design appropriate landing pages
• B) offer deep discounts
• C) offer free merchandise
• D) advertise with videos
• E) use pop-ups to get their attention

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Definitions:

NPV Profiles

NPV profiles are graphical representations that show the relationship between a project’s net present value and the discount rate applied to its cash flows.

Cash Flows

The net amount of cash being transferred into and out of a business, considered essential for assessing its financial health.

Cost of Capital

The cost of capital is the rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Crossover Rate

The discount rate at which two projects have the same net present value (NPV), used in capital budgeting.