{"id":34048,"date":"2023-09-19T00:44:06","date_gmt":"2023-09-19T00:44:06","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/discussion-post-compare-and-contrast-two-real-world-decisions-by-two-different-companies\/"},"modified":"2023-09-19T00:44:06","modified_gmt":"2023-09-19T00:44:06","slug":"discussion-post-compare-and-contrast-two-real-world-decisions-by-two-different-companies","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/discussion-post-compare-and-contrast-two-real-world-decisions-by-two-different-companies\/","title":{"rendered":"Discussion post compare and contrast two real-world decisions by two different companies."},"content":{"rendered":"

Last week, you learned the concept of
\n“elasticity”. This week, you will evaluate and discuss its relevance
\nas you compare and contrast two real-world decisions by two different
\ncompanies.<\/span>

\n

\n<\/span><\/b><\/span><\/p>\n

Case 1<\/span><\/u>: <\/span>In July 2011, <\/span>Netflix<\/span> implemented a plan to
\nsplit up its DVD + instant streaming plan into 3 separate plans: (1) DVD only,
\n(2) streaming only, and (3) DVD + streaming. The price for the DVD + streaming
\nplan would be raised from $10 to $16. The rate hike caused a loss of subscriber
\nbase to the tune of 1 million [reported in the following article in the <\/span>Huffington<\/span> Post” http:\/\/www.huffingtonpost.com\/2011\/09\/15\/netflix-price-increase-subscriber-loss_n_964026.html<\/span><\/a> ]
\nand a huge drop in the share price of <\/span>Netflix<\/span>. The company defended its decision and implemented the change
\nnonetheless.<\/span><\/span><\/p>\n

Case 2<\/span><\/u>: Around September 2011, Bank
\nof America announced that, beginning in early 2012, it would start charging its
\ncustomers $5 a month for using their debit cards [the following is an article
\nfrom the Christian Science monitor: http:\/\/www.csmonitor.com\/Business\/2011\/0930\/Debit-card-fees-Why-Bank-of-America-will-charge-5-for-debit-card-use<\/span><\/a>.
\nFollowing the tremendous backlash from credit card holders, the company
\nabandoned its plans and did not implement its new fee.<\/span><\/span><\/p>\n

Required:<\/span><\/b><\/span><\/p>\n

Compare and contrast the two cases. What <\/span>elasticity<\/span><\/b> considerations would <\/span>Netflix<\/span> and <\/span>BankAm<\/span> have considered in their
\nindividual decisions? Why did they react differently to essentially similar
\ncustomer responses?<\/span><\/span><\/p>\n

 <\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, you learned the concept of “elasticity”. This week, you will evaluate and discuss its relevance as you compare and contrast two real-world decisions by two different companies. Case 1: In July 2011, Netflix implemented a plan to split up its DVD + instant streaming plan into 3 separate plans: (1) DVD only, (2) streaming only, and […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[710],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/34048"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=34048"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/34048\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=34048"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=34048"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=34048"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=34048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}