Marketing Case Study
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Question 1
Cable industry ought to try to increase the data rates and also use short term discounting and entry level tiers to attract price sensitive customers and compete with generally lower DSL prices. Value driven strategy will be appropriate (Kevin, 23). They should be able to offer more reliable broadband as well as video services to have an upper hand over the competitors. The industry can also assume new ways of advertisement to keep the consumers aware of the services rendered.
Question 2
It is legally right for the government to intervene in industries whose prices outpace inflation because it acts as a way of checking the rate of inflation and putting it under control. It is also appropriate because by so doing; the consumers will be protected from the malicious industries that are out to exploit them due to their monopoly in the market (Godek, 56)
Question 3
Deregulation of cable industry will have an adverse effect on the part of the consumers. They are likely to be highly exploited by the company for instance, being charged high prices for the services rendered. Uncontrolled hike in the prices may lead to high rates of inflation. The company’s subscribers may see their bills for the popular programming tier soar (Hazlett, 55). Deregulation of the industry can also lead to the service deterioration. The fact that cable monopoly dominates in the market of multi-channel video programming may be a reason as to why the situation is appealing.
Question 4
I would prefer à la carte cable pricing, because it allows consumers to choose the cable channel they prefer and not accepting the bundles that cable providers offer. But to satisfy the FCC and also to avoid legalization that is likely to disorient consumers, the operators of the cable should offer varied benefits of à la carte pricing for instance through smatter bundling of family and sports as well as new programming to add to traditional tiered forms of packages...
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