GMAT Focus EditionData InsightsEasy
An e-commerce company is analyzing its website traffic and conversion rates. The following data is available for two product categories, 'Electronics' and 'Apparel', over the last month: | Category | Unique Visitors | Add-to-Cart Conversions | Purchase Conversions | |---|---|---|---| | Electronics | 50,000 | 10,000 | 2,000 | | Apparel | 80,000 | 12,000 | 3,000 | Which product category has a higher purchase conversion rate (purchases per unique visitor), and what is that rate (as a percentage, rounded to two decimal places)?
- AApparel, 3.75%
- BApparel, 2.50%
- CElectronics, 2.50%
- DElectronics, 4.00%
Show answer & explanationAnswer & explanation
Correct answer: D. Electronics, 4.00%
To find the purchase conversion rate, divide the number of purchase conversions by the number of unique visitors for each category and express as a percentage.
Why the other options are wrong
- A. Apparel: (3,000 purchases / 80,000 visitors) * 100% = 0.0375 * 100% = 3.75%. This is lower than Electronics. This option is incorrect.
- B. Apparel rate is 3.75%, not 2.50%. This option is incorrect.
- C. Electronics rate is 4.00%, not 2.50%. This option is incorrect.
Conversion Rate Calculation
Conversion rate is the percentage of users who complete a desired action (a 'conversion') out of the total number of users.
- Calculated as (Number of Conversions / Total Visitors) × 100%.
- Common in marketing and e-commerce to measure campaign effectiveness.
- Desired actions can include purchases, sign-ups, or downloads.
Memory trick: Conversion is simply turning browsers into buyers, a percentage of success.