Questions1
Subject:ManagementPrice: Bought3
Questions1. Faced with the increased costs of delivering DVDs by
mail and streaming online content, clearly Netflix had
to take some action. Describe the decision-making
process you would have advised Netflix management
to follow.
2. What values are reflected in the Netflix decisions
presented in the case?
3. Think back to the chapter discussion about the con-
cept of escalation of commitment. Was Netflix's
continuation with its pricing action (which resulted
in a large loss of customers) reflective of escalation
of commitment, or was it a rational plan? Explain.
