The flock of seagulls i

The flock of seagulls i ran

Why so nasty, People? Youd think we were at a Sarah Palin rally! But some of the objections, if not the attendant frothing, make sense; like why should people pay more when the waits are so long and so many discs arrive damaged? But the wait times are obviously one of the main reasons theyre doing this, knowing that a lot of cheap bastards I mean valued members will opt out, making more discs available to those of us that think that its worth paying 1 more a month for all the extra features and far superior image quality. And whos to say they dont intend to buy more copies? If the waits stay this long, people can simply opt out down the road. As to the number of discs that arrive damaged, Id suggest that some of the additional revenue go towards designing a the flock of seagulls i ran but lightweight inner sleeve to help protect them. Although, lets be clear here, this is 100% Sonys fault for manufacturing such a lousy product in the first place, notoriously vulnerable to both scratching and cracking as these things are. RIP HD. Question 49: You are the CEO of Flixsnet, a major online rental video store. You ve noticed that since the Economy is tanking, that more and more people will stay home and rent more of your videos for entertainment. As the greedy CEO that you are, you immediately start thinking how you can take advantage of this situation. The same day you call a meeting with all your top executives to brainstorm. , your VP of Marketing has an idea. Why don t we charge an additional 1 a month for Blue-Ray rentals? We ll come up with some lame excuse that it more expensive to purchase and since it is only an additional 12 a year, our customer won t really care, meanwhile we get richer! Additional Info: Flixsnet Customer based is a million strong, though the flock of seagulls i ran 20% of their customers own a Blue-Ray Disc Player. Of those 20% percent, only 50% are content with the service, since availability of Blue Ray titles are low and wait times are high. After hearing JT s idea, do you: B Fire him on the spot for trying to insult your intelligence! Explanation: Since Flixsnet has a million customers, but only 20% of them have the capability of playing a Blue Ray Disc, the potential for the additional revenue falls on 200, 000 customers. And since of those 200, 000 customers only 50% are happy with the service, it is safe to assume to only 100, 000 might be willing to pay for the extra 1 a month for the service. So at first sight, it may seem that Flixsnet could profit 100, 000 more a month if implementing the new charge. Unfortunately, did not think about the basic elements of Consumer Behavior when he thought of his brilliant idea. Since, it is now safe to assume that, conservatively, 7% of the 100, 000 customers that have Blue-Ray players and are not happy with the service, will cancel their membership. While, another 10% will downgrade their membership for various reason related to this price hike. If we assume the average plan is 12, right off the back that s an 84, 000 reduction in revenue a month. Plus, if we assume that the membership downgrade costs Flixsnet 4 a month, that s another 40, 0000 less revenue a month. If we add the 100, 000 of positive revenue, we end up with a deficit of 24, 000 dollars a month of loss revenue!!! And this does not include the effect of negative word of mouth from unsatisfied customers. Thus, decreasing the number of new subscribers for Flixsnet.