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M
Mena
on Jan 22, 2020
Global
Question about
Case

Why conversion rate?

if we are having 1M visitors and each reads 1000 articles, why using conversion rate?

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Luca
Coach
on Jan 22, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Mena,

The text is a bit confusing saying that "it is expected that each visitor will read about a 1,000 premium articles a year".  In the solution the assumption is that "every visitor that is willing to pay to read articles, will read 1000 articles per year". The conversion rate is an estimation of the visitors that are willing to pay.

Does it make sense?

Best,
Luca

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3 comments
M
Mena
on Jan 22, 2020
Hi Luca, yes it makes sense. I guess I was confused by the way it was writen. Thanks a lot
Anonymous A
on May 08, 2022
Sorry, no, I am still struggling to understand. If the questions says each visitor will read 1000 premium articles, I would assume it is implying that they are all willing to pay. So I wouldn't apply any conversion.

If the questions didn't explicitly say 'each visitor', then I would make an assumption for conversion.
J
Jose
on Jun 08, 2022
I agree with comment above, the text should be corrected. I don't see how someone will assume or ask about a conversion rate when the prompt clearly states that each visitor will read about 1,000 premium articles per year. Anyway, the quantity would throw me off and probably I would make a comment during the interview, but for practice purposes the text is plainly incorrect.
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