An organization that has changed its prices for its product or service.
Sample Solution
Netflix
Netflix is a streaming service that offers a variety of movies and TV shows. In 2019, Netflix announced that it would be increasing its prices for all of its plans. The price increase was met with some backlash from consumers, but Netflix defended the decision, saying that it was necessary to offset the rising cost of content.
Netflix uses dynamic pricing, which means that it changes its prices based on a variety of factors, including demand, competition, and the cost of content. For example, Netflix may charge more for its service in areas where there is a lot of competition or where the cost of content is high.
Full Answer Section
The results of Netflix's price increase were mixed. On the one hand, Netflix lost some subscribers. On the other hand, Netflix's revenue increased. Netflix also continued to grow its market share, even after the price increase.
The concept of value versus price may have played into Netflix's decision to adjust its pricing. Netflix believes that its service is worth more than the price it charges. The company also believes that its customers are willing to pay a premium for its service.
In addition, Netflix may have been trying to offset the rising cost of content. The cost of producing and acquiring content has been increasing in recent years. Netflix needs to raise prices in order to keep its content library fresh and competitive.
Overall, Netflix's decision to change its prices was a calculated risk. The company believes that the long-term benefits of the price increase outweigh the short-term costs. Only time will tell if Netflix is right.