BEA106: Behavioural Economics Analytical Report Assignment Help
Question
BEA106: This assignment for the University of Tasmania requires the students to select one behavioral economics-based issue faced by an organization and provide a detailed analysis report for the same. The students are supposed to approach the issue and propose solutions for the organization through their learnings related to behavioral economics concepts and theories. The students should also propose solutions for the organization’s implementation through the analysis conducted. Lastly, an evaluation mechanism should also be highlighted to assess if the solutions proposed would work for the organization or not.
Solution
The solution deals with the behavioral economics-related issues faced by Netflix. It is suggested that as OTT platforms are on the rise, it poses a challenge for Netflix to keep its customer base and attract new customers due to it being more expensive than the other competitive platforms. The report comprises a detailed evaluation of this problem along with the proposition of appropriate solutions for the organization.
Introduction
The solution begins by providing a short introduction for the report which incorporates the purpose of writing this report.
The number of OTT platforms is increasing every day, which is enhancing the competition in the OTT platforms. The paper will share its concern for Netflix, which is one of the most popular platforms throughout globally. In to evaluate customer behavior through the principles of behavioral economics.
This is only a snippet of the introduction written by our experts. If you wish to read the complete introduction, please call us at +61 871501720.
Background
Following the introduction, the report highlights the background of the Netflix organization and the services provided by the company.
Netflix INC, the American subscription streaming service and production company, started its operational culture in 1997. However, it becomes popular internationally at present time with the acceleration of digitalization in all markets in spite developing or developed countries. It provides a television and film series library by distribution and production which is known as Netflix originals. It is basically founded in California it is there internationally which helps it to generate 2500 crores US dollars as per the report of 2020 as revenue (Netflix, 2022).
Want to read more? Don’t hesitate to WhatsApp us at +447700174710.
Issue
The next section introduces the reader to the behavioral economics-related problem faced by the organization. Our experts have highlighted why the issue needs attention.
Netflix however is suffering through the competition of initiated OTT platforms is increasing day by day. In case of Australia, with the rising demand for the OTT platforms, like Trust Movie One, Movie live in Australia, many entertainment and media channels have launched on OTT platforms by collaborating with other platforms for streaming their content which eventually makes the situation crucial for Netflix as it does not remain the only popular OTT platform to watch shows or cinemas (9news.com.au 2022). Due to the expensive nature of the OTT platform, Netflix has even made the situation more difficult as people opted for other OTT platforms by considering the budget-friendly option as there are multiple forms like Disney and Hotstar, Amazon prime video, etc. Netflix has mainly initiated the interest for OTT platforms due to lockdown measures where people were compelled to stay at home and pass time. They have started to take some subscriptions for OTT platforms. The initiated demand however makes different media channels more interested to launch OTT platforms through effective decision making to have more customer acquisitions.
Curious about the customer behavior-related problem of the Netflix company? Let our experts help you. Mail us at onlineassignmentservices1@gmail.com.
Application of theory in relation to behavioral economics:
As the assignment demands the student to analyze the problem through the application of a behavioral economics concept, our experts have written a high-quality analysis through the lens of the relevant behavioral economics theories and concepts.
The issue of the Netflix or the problem Netflix is suffering through can better be evaluated by the principles or theories of economics, customers can better be attracted by the power of free. In marketing, the free word is the most powerful word as customers always look for free concerns like buy one get one or 50% off or free trial. While Netflix has 1 monthly free trial then it was proven that it is beneficial in the marketing (Wang et al. 2018). Apparently, it was taken that the marketing strategy would be a failure or a loss for the OTT platform; however, the outcome is surprising as through the marketing strategy it has acquired more customers as it becomes their habit by the one-month free trial. In the present context, however, it has removed that opportunity of 1 month’s free trial which further makes the customers interested to be attracted. Lower popularity and such type of improper strategy fails to address the old and new customer base. Hence, it can be said that the behavioral economics principle of the power of free was a success criterion for Netflix, and removing that the scenario becomes crucial to have market acquisition. According to the behavioral economics principle, another important consideration is social proof. It has been seen that social proof like different positive reviews initiates the traffic for a company among the consumers which eventually helps to attract more customers by exercising the trust factor (Van Ooijen and Vrabec, 2019). Netflix surely has several positive reviews however positive reviews for other OTT platforms are even there through which Netflix cannot make Australian people convinced enough by exercising the behavioral principle. Through the economic principle of loss aversion, people can be more affected by any type of loss than winning the same kind of profit. It even confirms that loss has a bigger impact on the consumers in the decision-making process. The free trial period of Netflix plays the same negative role here to initiate the issue.
This is only 50% of the analysis. To read the complete solution, reach out to us through WhatsApp at +447956859420.
Solution of the issue Netflix experienced:
In this next section, our experts have curated specific and appropriate solutions to the problems highlighted above which can be implemented by the organization.
The first important theory for making a change in a difficult situation can be framing (Challoumis, 2018). The behavioral economics principal framing confirms highlighting the advantageous aspects of the product in an appealing manner to have the support of consumer emotions. The platform cannot offer only regional content; hence, it is important for the platform to highlight its advantageous features like interruption-free enjoyment, offline playback feature, multiple viewership, and the best watching experience to be user friendly through device compatibility needs to be highlighted. It will be an added advantage for Australia to be well versed with regional content. Highlighting such features like adding free enjoyment, multiple viewership, and device compatibility can make the customers to be motivated towards Netflix to have uninterrupted enjoyment through free movies which are unique in the OTT platform. Another important theory in the context of behavioral economics for Netflix can be the third decoy or dominant alternative (Challoumis, 2019). The principle confirms that a less desirable 3rd option if gets introduced, then it can influence purchasing behavior or the decision-making process of the consumers. Depending on the same notion, it can come with different types of of price ranges as per usage to make it budget-friendly to have all types of consumers without making it confined to a particular segment. Through the concern, it can even avoid the issue regarding the expensive nature of it as different ranges can help it to be budget-friendly for every type of people. The cheaper option is appeared to be a decisive feature in comparative context with the subscription of other OTT platforms to confirm the better value (Wionews, 2022). It can make customers convinced with the fact that Netflix is offering a better deal compared to the regional OTT platform.
Need complete solutions proposed by our experts? We are just a call away- +61 871501720.
Evaluation of the solution:
Next, the experts have provided some ways through which the feasibility of the solutions proposed above can be evaluated. This will help in enhancing the applicability of the solutions for the organization.
The issue of the problem of Netflix and the evaluation of the problem by the behavioral economics theories are present in a real scenario thereby cross-checking is not important for the referred concern. However, for the outlined suggestions, it is important to cross-check to understand the feasibility of the suggestions.
Still confused about how the feasibility of the solutions can be evaluated? Don’t hesitate to WhatsApp us at +447700174710.
Conclusion
Lastly, the solution also provides a short conclusion to the findings proposed in the study. You can find half of the conclusion written by our experts below.
As per the discussion, Netflix, being the most popular OTT platform is suffering through lacking competitive advantage due to several issues where the absence of regional content and expensive nature of the platform, and multiple choices for the customers are the main reasons. The justification through behavioral economics principles for both the issue as well as for the solution in the context of Netflix basically helps to understand consumer behavior in a better way to adopt shortcuts for attaining success in the business.
Need help in writing your behavioral economics report too? Mail us today at onlineassignmentservices1@gmail.com.
