Question

	sales price	jan-feb 2012	Mar-12	May-12	lift on units sold (promo vs pre-promo)
eiffel tower NB	19.99	274	686	219	501%
Taj Mahal	19.99	308	163	132	106%
Castle	19.99	244	184	146	151%
EAS	12.99	344	352	399	205%

1. Please refer to the Table 16-6 "Sales Data on Selected Products" on page 206, based on the sales data of Eiffel Tower nanoblock, what is the MROI for the Amazon Gold Box promotion experiment? (5 points) Hint: compare results from Jan-Feb 2012 to March 2012 and calculate the sales revenue lift to plug into the MROI formula.

Answer 1

Solution:

Given that,

Please refer to the Table 16-6 "Sales Data on Selected Products" on page 206, based on the sales data of Eiffel Tower nanoblock, what is the MROI for the Amazon Gold Box promotion experiment:

	A	B	C	D=C-B	E=A D
Ohio Art Product	Sales price	Jan-Feb	March	Increase	Revenue Fit
Nanoblock Eiffel Tower	$19.99	274	686	412	$8,236
Nanoblock Taj Mahal	$19.99	308	163	-145	($2,899)
Nanoblock Castle Neuschwanstein	$19.99	244	184	-60	($1,199)
Classic EAS	$12.99	344	352	8	$104
				SUM	$4,242

Total revenue lift= $4,242

Marketing investment=$2,100

Marketing Return=4242-2100 =$2,142

Marketing Return on investment(MROI)=1.0199286

MROI as percentage=102%

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