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Netflix in 2011

Netflix in 2011
04/24/12
Not only Netflix’s stock price plummeted, its Brand Equity declined tremendously after the announcement of price hikes in July 2011.

In Q1 2011, Netflix reached its highest point and became a Super Leadership brand. However, its Brand Equity has declined dramatically since Q1. After the price hikes took place in Q3, the brand was further damaged and became weaker than it was in 2009. (Graph A)

Admired Differences (Energized Differentiation and Esteem), an indicator of brand loyalty, started to erode after Q1. At the same time, Relevance fell off the cliff, reflecting the lost of subscriptions. As Netflix has become better-known than well-liked (Esteem>Knowledge), consumers are less desired to learn about what the brand has to say, including CEO Reed Hastings’ apology letter, on Sep. 19th. (Graph B)

Furthermore, negative perceptions of Netflix also have emerged. (Graph C) Netflix became more Arrogant, and lost some Credibility perceptions.
Source: BrandAsset® Valuator USA, 2007-2011 All Adults.

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