Need help with homework in inferential statistics and hypothesis testing

Business Research Project Part 1

Team A: Corey Duever, Sophia Gonzalez, Stephanie Hester,

Torrey Royster, and Victoria Hayes

QNT/561

September 26, 2016

Christopher Whitehead

Business Research Project Part 1

Products and Services

Netflix is an organization that is best known for its online television and movie streaming services. Netflix was started in California in 1997. Along with video streaming, Netflix also offers a DVD rental website. In 2013, Netflix opted to begin creating original content, which includes series and full length moves that are offered exclusively on Netflix. With the slow expansion it started in few areas which include Canada and with time its bases expanded which led to its spread across the continents. Currently the company has recorded over 150 million subscribers having its bases in over 190 countries (Netflix, 2016).

Additional products that Netflix has offered so far include the 2015 prototype called "The Switch" a device which allowed the user of the Netflix to be able to switch on and off lights when connected to smart home light system (Huddleston, 2015). This has led to even servers to order take downs and even a phone can be silenced with a press of a button. In 2016 they have launched another tool that is referred to as FAST which determines the speed of internet (Huddleston, 2015).

Organizational Problem

Quantitative approaches provide importance to objective measurements in addition to statistical, calculated, mathematical examination of information collection through surveys, censuses, or by means of influencing current statistical information. According to "Organizing Your Social Sciences Research Paper: Quantitative Methods" (2016), "quantitative research focuses on gathering numerical data and generalizing it across groups of people or to explain a particular phenomenon”. This technique can aide Netflix with understanding why they are losing customers to the competition and come up with a game plan to address the issues. Other providers such as HBO and Amazon have entered the market, which is putting pressure on Netflix to put forth a unique and affordable product. (Netflix, 2016)

Research Question

The research question is a fundamental portion of a research project, study, or review. The research question should be utilized as a guide for conducting all the stages of research and collecting data such as, inquiry, analysis and reporting. It also assists in focusing the study aspect of the research and helps to determine the proper method of research that should be implemented (Research Rundowns, n.d). The research question that addresses the management problem that Netflix faces is: How does Netflix maintain its competitiveness in the video streaming market?

Quantitative Variables

Quantitative variables are used to mathematically analyze situations within a business. Our team can study the price of subscriptions and the number of subscribers that joined or canceled over a period of time. These two variables can be analyzed to see what affects the customer’s opinion of Netflix the most. Investigative questions that could be used to answer the research question include: How many customers leave Netflix due to price? What price increase would be acceptable if certain shows or content was added?

Content is a major driver when it comes to setting the price for Netflix subscriptions. It is likely that Netflix will develop more original content as well as secure licenses for shows, which increase costs for the company (Netflix, 2016). In June of 2016 Netflix has been faced with losing customers as the price starts to increase. New members pay $9.99 instead of $8.99, but those who are grandfathered in at the low price of $7.99 have to either pay two dollars more or go to a lower tiered plan (Williams, 2016). The cost of Netflix will likely have to increase in the future to secure the quality of content needed to compete with other streaming services, cable and other sources of media. The price that consumers are willing to pay per month for a more diverse content selection would help predict how price increases in the future would affect customer loyalty.

Conclusion

Netflix is a company that needs to be very responsive to the needs of its subscribers in order for it to remain competitive. It has had to make changes to the services it offers so that it could maintain a sizeable market share. The research question that we used in this project is one that will remain as long as Netflix exists. Studying the relationship between membership prices, content and subscribers will allow Netflix to make the needed changes to maintain or increase subscribers while staying profitable.

References

Huddleston, T. (2015). This is basically a ‘Netflix and Chill’ button. Retrieved from http://www.fortune.com

Organizing Your Social Sciences Research Paper: Quantitative Methods. (2016). Retrieved from http://libguides.usc.edu/writingguide/quantitative