Since Its Launch, Netflix Has Changed Its Business Model in Order

question 384

Multiple Choice

Since its launch, Netflix has changed its business model in order to

• A)compete with Blockbuster's retail store expansion.
• B)respond to changing customer service needs.
• C)expand its focus from entertainment to movie collectibles and memorabilia.
• D)avoid head-to-head competition with satellite television providers, which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix.
• E)begin preparations to withdraw from its traditional method of mail delivery, which takes 2-3 business days, and introduce next-day delivery through FedEx.

---

Definitions:

Price Setting

The process of determining the selling price of a product or service, based on factors such as cost, demand, and competitive prices.

Loss-Leader Pricing

A pricing strategy where a product is sold at a loss to attract customers to profitable items.

Retailers

Businesses that sell goods or services directly to end consumers for personal or household use.

Discounts

A reduction applied to the normal selling price of goods or services, offered to stimulate sales or attract customers.