1
,Executive Summary
This report is written for the course Business Research 2 by student Jade Jury. The aim is to
compose a proper research paper to improve how to write well, develop research skills and
prepare students for the writing of their thesis. The main reason for this report is to answer
the main research question which is: “What marketing strategies does Netflix incorporate to
keep customer loyalty?”.
Netflix Inc. has been put in the spotlight to examine its problem because the company is the
world’s leading stream service with 158 million paid memberships. The company need to
find a way to solve and prevent losing subscribers as a strong competitor just stepped in the
market: Disney+
To answer the main research question, in chapter 2 a theoretical framework has been created
and explained. In Chapter 3, the variables used within the theoretical framework were
analyzed and clarified in more detail. Customer Loyalty and Marketing Strategies has been
studied. The success of Netflix, Inc. relies on the fact that online rental has been their passion
sins 2002, the company constantly works to strengthen and improve every aspect of their
operations. The company must add new subscribers both to replace canceled memberships
and to grow the business beyond their current membership base. The company also stated
that “If we do not grow as expected, given, in particular, that our content costs are largely
fixed in nature and contracted over several years, we may not be able to adjust our
expenditures or increase our revenues commensurate with the lowered growth rate such that
your margins, liquidity, and results of operations may be adversely impacted”. If the
company is unable to compete with current and new competitors in both retaining the existing
subscribers and attracting new subscribers, Netflix, Inc. will be adversely affected
Netflix Inc. can be described as the world’s leading internet entertainment service with one of
the most loyal subscribers. However, with the new competitor, Disney+ it can be a challenge.
2
, Table of Contents
Executive Summary...............................................................................................................................................2
1. Introduction........................................................................................................................................................4
1.1 Background...................................................................................................................................................4
1.2 Company Description....................................................................................................................................4
1.3 Problem Statement.......................................................................................................................................4
1.4 Research Question.........................................................................................................................................5
1.5 Organization of report...................................................................................................................................5
2. Theoretical Framework.....................................................................................................................................5
2.1 Introduction...................................................................................................................................................5
2.2 Customer Loyalty...........................................................................................................................................5
2.2.1 Theoretical perspective 1: Trust............................................................................................................6
2.2.2 Theoretical perspective 2: Satisfaction..................................................................................................6
2.3 Marketing Strategy.......................................................................................................................................7
2.3.1 Theoretical perspective 1: Target Market.............................................................................................7
2.3.2 Theoretical Perspective 2: Customer Complaint...................................................................................8
2.4 Selection of theory and conceptual framework............................................................................................9
2.4.1 Dependent Variable...............................................................................................................................9
2.4.2 Independent Variable..........................................................................................................................10
2.5 Practical Examples......................................................................................................................................11
2.6 Conclusion..................................................................................................................................................12
3. Analyses.............................................................................................................................................................13
3.1 Introduction.................................................................................................................................................13
3.2 Descriptive analysis variable 1....................................................................................................................13
3.2.1 Customer Loyalty.................................................................................................................................13
3.2.2 Theory analyzing..................................................................................................................................14
3.2.3 Conclusion Customer Loyalty..............................................................................................................15
3.3 Descriptive analysis variable 2....................................................................................................................15
3.3.1 Marketing Strategy..............................................................................................................................15
3.2.2 Theory Analyzing..................................................................................................................................16
3.4 Conclusion...................................................................................................................................................16
4. Conclusion.........................................................................................................................................................17
Bibliography..........................................................................................................................................................19
3
,Executive Summary
This report is written for the course Business Research 2 by student Jade Jury. The aim is to
compose a proper research paper to improve how to write well, develop research skills and
prepare students for the writing of their thesis. The main reason for this report is to answer
the main research question which is: “What marketing strategies does Netflix incorporate to
keep customer loyalty?”.
Netflix Inc. has been put in the spotlight to examine its problem because the company is the
world’s leading stream service with 158 million paid memberships. The company need to
find a way to solve and prevent losing subscribers as a strong competitor just stepped in the
market: Disney+
To answer the main research question, in chapter 2 a theoretical framework has been created
and explained. In Chapter 3, the variables used within the theoretical framework were
analyzed and clarified in more detail. Customer Loyalty and Marketing Strategies has been
studied. The success of Netflix, Inc. relies on the fact that online rental has been their passion
sins 2002, the company constantly works to strengthen and improve every aspect of their
operations. The company must add new subscribers both to replace canceled memberships
and to grow the business beyond their current membership base. The company also stated
that “If we do not grow as expected, given, in particular, that our content costs are largely
fixed in nature and contracted over several years, we may not be able to adjust our
expenditures or increase our revenues commensurate with the lowered growth rate such that
your margins, liquidity, and results of operations may be adversely impacted”. If the
company is unable to compete with current and new competitors in both retaining the existing
subscribers and attracting new subscribers, Netflix, Inc. will be adversely affected
Netflix Inc. can be described as the world’s leading internet entertainment service with one of
the most loyal subscribers. However, with the new competitor, Disney+ it can be a challenge.
2
, Table of Contents
Executive Summary...............................................................................................................................................2
1. Introduction........................................................................................................................................................4
1.1 Background...................................................................................................................................................4
1.2 Company Description....................................................................................................................................4
1.3 Problem Statement.......................................................................................................................................4
1.4 Research Question.........................................................................................................................................5
1.5 Organization of report...................................................................................................................................5
2. Theoretical Framework.....................................................................................................................................5
2.1 Introduction...................................................................................................................................................5
2.2 Customer Loyalty...........................................................................................................................................5
2.2.1 Theoretical perspective 1: Trust............................................................................................................6
2.2.2 Theoretical perspective 2: Satisfaction..................................................................................................6
2.3 Marketing Strategy.......................................................................................................................................7
2.3.1 Theoretical perspective 1: Target Market.............................................................................................7
2.3.2 Theoretical Perspective 2: Customer Complaint...................................................................................8
2.4 Selection of theory and conceptual framework............................................................................................9
2.4.1 Dependent Variable...............................................................................................................................9
2.4.2 Independent Variable..........................................................................................................................10
2.5 Practical Examples......................................................................................................................................11
2.6 Conclusion..................................................................................................................................................12
3. Analyses.............................................................................................................................................................13
3.1 Introduction.................................................................................................................................................13
3.2 Descriptive analysis variable 1....................................................................................................................13
3.2.1 Customer Loyalty.................................................................................................................................13
3.2.2 Theory analyzing..................................................................................................................................14
3.2.3 Conclusion Customer Loyalty..............................................................................................................15
3.3 Descriptive analysis variable 2....................................................................................................................15
3.3.1 Marketing Strategy..............................................................................................................................15
3.2.2 Theory Analyzing..................................................................................................................................16
3.4 Conclusion...................................................................................................................................................16
4. Conclusion.........................................................................................................................................................17
Bibliography..........................................................................................................................................................19
3
