Today, the long wait is over. Netflix finally broadcasts the fourth season of the House of Cards. The great success story about Frank Underwood, played by Kevin Spacey, aiming to run again as president of the United States, is the ingredient of a promising new season. But how did House of Cards become such a success? Netflix invested 100 million dollars in House of Cards before they made one single trail episode. Was it an investment in uncertainty of 100 million dollars? Or did Netflix know that its success was an understatement?
The study “The impact of Ad Repetition and Ad content on Consumer Perceptions of Incongruent Extensions” by Lane R.(2010) emphasizes the importance of repetition. When consumers are exposed to advertisements several times, they tend to be more positive towards a brand or product shown in advertisements. One-exposure to an advertisement may mislead the perceiver.
A new B2C e-commerce business model that has been introduced in the last years is the subscription based model. Customers create an account and subscribe for a frequent purchase of a product. Earlier, this model has been mostly used by newspapers and magazines. However, nowadays it is used in many businesses and websites.
“The subscription model owes its success to the optimal balance of value it provides to both the company and the customer. For customers, the value lies in the convenience” (Longanecker, 2015). They do not have to remember to reorder again every month. Moreover, the remained price helps customers to stay in their budget. Last, value for the customer is being creating by the bundling of several products in one price.
Consumer Value Creation 