Netflix, founded by Reed Hastings, is a movie and video game rental service designed to provide DVD and video game rental services that the consumer does not need to leave home to consume. With the computer age today, consumers are relying more and more on services provided by online service providers, and Netflix has taken advantage of the opportunity to corner the market in video and game rentals.
The exchange process between Netflix and its consumers includes the basic elements of an exchange process. The first element is that both parties, Netflix and the customer, are both part of the exchange. Both parties hold something that has value to the other party. Netflix has DVD’s and Video games which are desired but the customer, and the customer has currency which is valued by the Netflix. Both parties have the ability to communicate and deliver their contribution to the exchange. The consumer is able to communicate their desires and deliver their payment via the internet. Netflix is able to communicate their services, and are able to deliver their product through US mail. At any time either party is able to accept or reject the exchange. The buyer if not satisfied with the service and quality has the right to cancel their subscription. Netflix also has the right to cancel an exchange and an example of this may be if the buyers’ electronic funds transfer was denied by their banking institution. Both parties hold something desirable to the other. For the consumer the desired value may be the benefit of being able to stay in the comfort of their own homes and enjoy a movie without having to leave the home. It also saves them gas and travel expenses, no late fees and no standing in line. Netflix desires can be met s they are able to make a profit for the company. They do not need the overhead of the storefront; no cashiers, no limits on business hours and no building maintenance on retail stores. These are all desirable aspects of the exchange for...