A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale. That firm should use the performance measure of
A) cost per thousand, and pay 50 cents for every time an ad loads, up to $100 per month.
B) a negotiated measure, and pay $100 to post its ad for two weeks.
C) cost per click, and pay $1 for every visitor who clicks on the ad and goes to its website.
D) cost per action, and pay $50 for every purchase that originated from an ad on the site.
E) cost per like, and pay $1 for every unique visitor who likes the advertised product.

Question

Quizplus · Accepted Answer

Cost per action (CPA) is the appropriate performance measure for a business that wants to pay only when an ad generates a sale, as it involves paying for a specific action, such as a purchase.

A Business Hopes to Generate Large Online Sales Through Posting