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Netflix Demonstrates the Value of Market Research


Netflix Demonstrates the Value of Market Research
Netflix stock has been soaring. From January 1, 2009 through July 14, 2011 Netflix stock increased nearly 900%. This past July Netflix announced a major change to its business. It was splitting its unlimited streaming and unlimited DVD-by-mail plan into two plans which will cost 60% more than the current plan. Customers were outraged by this 60% price increase. A survey indicated Netflix will lose 10% - 30% of its customer base as a result of the change. Since the announcement, Netflix stock has plummeted 57% in just two months wiping out nearly $9 billion in market capitalization. A well-designed conjoint study costing approximately $100,000 would have predicted the market's reaction to the new strategy. When debating the value of market research, consider gow a $100,000 investment could ...

Posted on Monday, September 26, 2011 by Chip Levinson
Viewed: 523 times. Comments: (0)

About the Author

Chip Levinson, president of TechWise Research, Chip Levinson, president of TechWise Researchis a senior executive with over 22 years of experience in market research, business development, and product marketing. Throughout his accomplished career the combination of Chip's leadership skills with his commitment to excellence and customer service has helped employers and clients alike become more successful in their marketing endeavors. He has three main areas of expertise:

  • Market Research – Chip has personally designed, managed and analyzed hundreds of custom market research studies regarding computer hardware, software, and other high-tech products.
     
  • Product Marketing – Chip has managed the development and marketing of numerous successful software products, including market simulation tools, web survey software, XML editors, and printer driver software.
     
  • Business Development - Chip has a track record of implementing successful programs targeted at consumers, businesses, resellers, and OEMs.

Chip holds a Bachelor of Science degree in Engineering from the University of Michigan and an MBA in Marketing and Finance from UCLA.To learn more about Chip, visit his Linked In Profile.


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