1. Describe the elements of the exchange process as they occur between Netflix and its customers. Exchange process: People giving up something to receive something they would rather have. Customers pay a monthly fee depending on the plan the customer chooses and the customer is able to receive 1 to 3 DVDs of their choice in the mail. After viewing the DVD the customer mails back the DVD to Netflix in the supplied packaging. When the titles are scanned in at one of the distribution warehouses, the customer is simultaneously sent the next selections on their favorites list
2. Which marketing management philosophy does Netflix subscribe to? Marketing orientation, they focus on what the customer wants; they distinguish themselves in the marketplace by cost, convenience, and service. They listen to what their customers want. They provide superior customer value. They do not have an aggressive sales force, the customer decides to purchase the product. They understand the competition; Wal-Mart couldn’t match their value. Netflix is looking to the future by adding high definition DVE rentals.
3. How does Netflix’s approach to relationship marketing increase customer satisfaction? Relationship marketing is a strategy that focuses on keeping and improving relationships with current customers. Customers prefer having an ongoing relationship with one organization than switching.
1. Allows consumers to choose from a variety of subscription plans.
2. over the internet, easy to use.
3. Receive DVD’s in the mail along with a stamped return envelope, no running to video store
4. Netflix offers a recommendation list
5. Fast turnaround service
6. Listens to its customers, in response to customers, customers now have the ability to generate multiple favorite’s lists for a single account 7. Excellent customer service, they call back the customer to find out how the problem could have been prevented
4. Have you been exposed to Netflix advertising? If so, did it have a positive or negative effect on you? Yes I have been exposed to Netflix advertising. It had a positive effect on me just because I never have tried Netflix but a lot of my friends have it and give it a good response when I ask how it is. 5. Netflix tried a different sales tactic over the holidays. The company offered a gifting option so one person could sign up and “gift” a trial subscription to another person. What is your opinion of this move by Netflix?
My opinion is that this is a great ideal for the holidays, but after the holidays I don’t think much people will do that. But for the holidays they might get a great response but after the holidays they should change it I think.