mktg 379 project (1)
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School
California State University, Fullerton *
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Course
379
Subject
Information Systems
Date
Apr 3, 2024
Type
Pages
2
Uploaded by DeanPrairieDogPerson1031
Netflix pricing: In this investigation, you would assess the satisfaction with the new
Netflix pricing scheme and reaction to the new pricing policy (extra cost for sharing in
different locations). Find out how many people share their accounts with their friends or
family and identify how many of them will decide to remain/ leave the OTT service for
the new pricing policy. (hint: you can try to suggest a new type of price for subscribers
and find how people like it and if they have willing to choose the price.)
(1)
a general statement of the client's problem that the client hopes to solve with the
information you will provide in your report.
-
Netflix is trying to deal with people sharing their Netflix accounts with people that
should not have it. This is making them lose money, since if the account was not
shared then that person would have to buy their own subscription. Netflix is aiming
to raise prices of Netflix subscriptions in order to get more money. In this report we
will help Netflix decide how they should go about pricing their subscriptions and
what to do with account sharing.
(2)
the decision(s) to be made by your client based on your research, and the decision
alternatives
-
Netflix is going to decide if they will continue to allow accounts to be shared or not
and for what price. Netflix is determining the optimal decision to fix the account
sharing issue without driving away customers, which is leading to a loss of potential
revenue. The decision alternatives Netflix will consider are :
-
If they should limit the amount of items a single account can be logged into
-
If they should raise subscription price since most accounts are shared
-
Charge extra to the monthly subscription fee for each time the account is
shared
(3)
the target for the decision(s) to be made--is the goal to increase
satisfaction/patronage of existing customers or is it to bring new customers to the
business. You
must
choose ONE of these; for this project, you cannot do both.
-
Bring in new customers
(4)
the client’s
managerial objectives
for the research project (may overlap with 1 and 2
above)
-
The managerial objective for the research project is to figure out what customers
would like with their subscriptions of Netflix and what price they are willing to pay
for it. This can be done with surveys as well as looking at what prices and policies
were working in the past. You can also take a look at what other subscription
services are doing with their subscriptions and how they handle multiple people
using the same account on different devices.
(5)
your project’s
research objective(s)
. Your projects need to have at least two research
objectives.
-
Find out how many people will stop their Netflix subscription if the prices increase.
-
How to minimize the amount of account sharing meanwhile retrieving the most
revenue.
-
How to retrieve revenue from the individuals who are borrowing an account login.
(6)
a list of research questions for each of the objectives in (5).
-
Find out how many people will stop their Netflix subscription if the prices
increase.
-
How will we get this information, whether it is from a survey or focus group?
-
How much would the prices have to go up by for people to stop subscribing?
-
How to minimize the amount of account sharing meanwhile retrieving the most
revenue.
-
What are other companies with similar subscription services handling
account sharing?
-
Do the gains from taking away account sharing outweigh the losses made
why account sharing was still a thing?
-
How to retrieve revenue from the individuals who are borrowing an account
login.
-
What is the maximum number of users that can borrow the account login?
-
How much are we willing to charge for extra devices?
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