Netflix's Attempt at 'Transparency' Angers Consumers, Hurts Brand
http://adage.com/article/news/netflix-s-attempt-transparency-angers-consumers-hurts-brand/229906/
Summary:
Netflix recently decided to split their business in two, creating a streaming-only service (Netflix) and a DVD-mailing service (Qwikster). Many customers feel that this transition was out of the blue and careless. There is much controversy as to whether or not this was a good idea on the part of Netflix. Many customers do not see any benefit in this change for themselves and think that Netflix has overlooked the needs of their loyal customers. The PR team is working hard to communicate that there is some kind of value to their customers.
1. Do you think customers will continue to stay loyal to the Netflix brand? Why or why not?
2. What could/should Netflix do to resolve some of the anger that customers have toward them?
3. Do you think that Qwikster will eventually have the same popularity as Netflix? Why or why not?
4. Do you think that this splitting of the business was a good move for Netflix?
Why Terrible Online Reviews Are Actually Good For You
http://adage.com/article/digitalnext/terrible-online-reviews-good/229790/
Summary:
Negative reviews actually are a very important tool for brands and products. The negative reviews have proven to be even more helpful that positive ones because brands and products can learn where their problem areas are and figure out how to make them better. They also create an opportunity for a brand or product to speak to the person who gave the negative review and possibly turn them into a happy customer.
1. What impact do you think that online reviews have on consumers? Why?
2. Have you ever posted a negative review and gotten a response from the brand or product? If so, how did this change your opinion about that brand or product?
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