Raising prices and fees may boost share price, but at what cost? Netflix's decision to hike the price for unlimited streaming and DVD rentals last month may have been great news to investors but not
customers. Yes, Netflix's stock price rose 2%, but how about its brand equity?
Others, like Bank of America, which is also raising fees because of business trends and new regulations,
should look at Walmart, which raised prices to lift margins. The company now finds most of its shoppers no longer believe it has the lowest prices. How about Netflix? Earlier this year it met 99% of
consumer expectations. That number is now 93%, per Brand Keys.
Read the whole story at Advertising Age »