Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Netflix offers "all-you-can-rent," one disk out at a time, mail-order rental of DVDs

Netflix offers "all-you-can-rent," one disk out at a time, mail-order rental of DVDs

Marketing

Netflix offers "all-you-can-rent," one disk out at a time, mail-order rental of DVDs. Redbox rents individual disks on a daily basis at individual kiosks but provides frequent discount codes to reduce the price of disks to end users (occasionally even offering them for "free" to frequent customers). Which strategy is likely to be more profitable? Why?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The strategy used by Redbox seems to be more profitable compared to that of Netflix. When Redbox offers constant discount codes to minimize the disk prices to its customers, it motivates customers to purchase more. When a customer learns that they will save some amount of money after buying a specific product, they will refer the company to other potential customers. This means that Redbox, in our case, will have more customers, thus increasing the amounts of profits it obtains. In turn, increased sales improve the company's reputation, which contributes to business success.

Related Questions