What has been the impact of Netflix’s move from single plan pricing to separate pricing for streaming and DVD-by-mail? 2. What factors motivated this move? 3. Do you think splitting the service into separate plans was a wise move? Why or why not? 4. What errors did the firm make in the “Qwikster debacle”? What could the firm have done differently? 5. Do you think this would have had a positive impact on the firm? Why or why not?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
1. What has been the impact of Netflix’s move from single plan pricing to separate pricing for streaming and DVD-by-mail?
2. What factors motivated this move?
3. Do you think splitting the service into separate plans was a wise move? Why or why not?
4. What errors did the firm make in the “Qwikster debacle”? What could the firm have done differently?
5. Do you think this would have had a positive impact on the firm? Why or why not?
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