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As I read over the case study of the relationship between Netflix and customers I gathered the following information and learned the following things about how they market themselves. I believe that the Elements of Exchange happen in the following ways between Netflix and its customers. Firstly, there are at least two parties present and involved. The parties are Netflix itself and the customer. Next, each party has something of value to offer the other (Lamb, 2006).

Netflix offers a wide variety of movies and television shows and the customer offers the money to pay for the subscriptions. Netflix offers free pre-stamped return envelopes and several other options to customers like recommended movies lists, friends list, speedy send out of next movie on your list, and fewer customer service reps for better one on one assistance. Consumers are able to cancel subscriptions at any time and have different levels to choose from for best value to them. This allows them to be free to accept or reject the offer.

Entrepreneurship Netflix TOPICS SPECIFICALLY FOR YOU

Finally, each party believes it is appropriate or desirable to deal with the other party. Netflix continued business is based on ever-increasing customer basis. Netflix has less and less cancelations and they listen to the wants and needs of the consumers to better their value for customers. I feel that Netflix is more of a market-based orientation. Market Orientation is the management philosophy based on consumers and listening to the desires of the consumers to increase value of the company.

Netflix focuses on customer wants by offering multiple levels of subscriptions. Consumers also desired a “friends list” option allowing consumers to share their movies with other Netflix users. This allows consumers to use word of mouth to increase sales for Netflix. Netflix also uses Cinematch to build recommended titles for consumers. This shows that they listen to the wants and needs of consumers and make every attempt to better the experience and continue to build rapport. Netflix has a small customer service department.

They have maybe 50 representatives and only about 10 are allowed to do direct call back to customers. This allows customers to receive better and more timely responses to complaints. The feedback is handled more quickly instead of being lost in the flow of a larger customer service office. I am currently a Netflix customer. I am extremely impressed with Netflix as a company. I often watch the movies they have recommended based on other movies I have watched. I use the live stream option so I am able to watch movies on my computer, television, and even my phone.

I watch a lot of series and I continue to be impressed with how quickly new seasons are added to the series I am watching. I think the gift idea is excellent. Netflix truly sells itself with all the great options it has. I feel this allows customers to have a sense of control and gives them the opportunity to feel they are suggesting something worthwhile to their friends and family. I feel this builds better rapport between customers and Netflix. The gift idea is also beneficial to Netflix because it helps increase their customers therefore increasing sales and revenue.


Lamb, C. (2006). Essentials of marketing. (6 ed.). Mason, Ohio: South-Western Cengage Learning. Retrieved from http://www.cengage.com/custom/static_content/OLC/1111400385/data/lamb56203_0324656203_02.01_chapter01.pdf

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