todays discussion was movie promotions online. why they are good. we said that we get easy access to their trailer.
we talked about business model and revenue model amazon’s and word street journals business models are amazon is aggregator and WSJ is content provider. amazon;s revenue model is advertising and e-commerce and WSJ’s is subscription. they make their money depending on these facts.
then we talked about direct response mediums such as TV, internet and word of mouth in internet.
we then discussed the importance of customer life-time value. it is important because you want customer loyalty, brand recognition, you want to keep your customers and get new ones. switching customers are not good. like in the case of phone companies. they change their strategy in order to keep their customers and they started to sell phones with two year contracts and if you cancel your contract before it finishes you have to pay a fee in order to close it.
then we talked about switching costs. the switching cost of changing email addresses are your contacts. you lose your contacts that were on your previous email. buying in amazon instead of barnes and nobles’s swithcing cost is time and maybe money. or you are too lazy to just go out and buy it in there. instead you just stay home and order it online.