MKTG 1204 Activity 1 Netflix - Consumer Behaviour PDF

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Consumer Behaviour Netflix Case Study...

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Activity 1: NETFLIX CASE Name: Student Number: Tutorial day and time: In this activity you have to read the brief case study from your text book on page 94-95 (in chapter 2. The case is on NETFLIX. After you finish reading the case you are supposed to answer the following questions in the space provided. 1. How do you split your time between traditional television and streaming video? Traditional television: Based on a grid listing television shows, time spent watching shows would be based on the time the shows are aired, usually on a weekly basis. There is limited availability of the show to consumers (one episode in one sitting). Using the grid, I would find out the timeslots of the shows I want to watch, and watch them when they are aired. If I wanted to watch my favourite television show, I would only be able to watch it on the specific day and time at which it is aired, and would have to wait for another week to pass before I can watch the next episode. Streaming video: Netflix releases their shows as entire seasons instead of weekly episodes. Hence, consumers are able to watch multiple episodes/an entire season/multiple seasons in one sitting (“binge viewing”). Being a consumer myself, I would rather watch the next episode of a show immediately instead of impatiently waiting for an entire week to pass before I can watch the next episode. With the availability of entire seasons online, I could potentially spend many hours a day streaming videos, to satisfy the suspense. Furthermore, there is no specified broadcast timing as the videos are accessible at any time, so I am able to watch it whenever I want. 2. How might consumers use heuristics when choosing television shows to watch on Netflix? Heuristics = simple and efficient rules (“mental shortcuts”) used in decision-making Consumers may decide on television shows to watch, based on the following: a. Popularity ratings – the higher/more popular rating, the more likely consumers would choose to watch that particular television show on Netflix. As a consumer, I would rather pick a show from the “top 10 most watched” shows that are more popular, as the mentality of “This show must be good because everyone is talking about it!” would have a part to play in my choice of show, and I would watch it to find out why it is so popular. b. Genre – Consumers can easily browse through different categories to select their preferred genre. For example, if I wanted to watch something funny, I could easily use the search tool to retrieve a wide selection of comedy shows instantly to choose from. c. Netflix “recommender” system – suggests shows to consumer based on collation of billions of consumer ratings. Hence even if the consumer is unsure of what to choose from the wide selection of shows, Netflix can help decide on what to watch. Usually as a consumer, I would be spoilt for choice due to the wide selection made available at my fingertips, thus I would use the system and save myself the effort of making a choice....