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GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS Student name: Cao Đoan Hoàng Ngọc Student ID number: B Student name: Nguyễn Thị Yến Nhi Student ID number: B Student name: Nguyễn Xuân Nhiên Student ID number: B Student name: Phạm Trần Nhật Quỳnh Student ID number: B Student name: Phạm Võ Ngọc Tiên Student ID number: B UNIT AND TUTORIAL DETAILS Unit name: Consumer Behavior Unit number: (^) CB-T221-WSB- Tutorial/Lecture: Ms. Phương Class day and time: Thursday, 15: Lecturer or Tutor name: Ms. Nguyễn Ngọc Quỳnh Thư ASSIGNMENT DETAILS Title: Group Written Report Length: 2110 words Due date: 11/08/2021 Date submitted: 11/08/ Home campus (where you are enrolled): Vo Van Tan Campus DECLARATION I hold a copy of this assignment if the original is lost or damaged. I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment. I hereby certify that no part of this assignment or product has been submitted by me in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator for this unit. No part of the assignment/product has been written/produced for me by any other person except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned. I am aware that this work will be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking). Student’s signature: Cao Đoan Hoàng Ngọc Student’s signature: Nguyễn Thị Yến Nhi Student’s signature: Nguyễn Xuân Nhiên Student’s signature: Phạm Trần Nhật Quỳnh Student’s signature: Phạm Võ Ngọc Tiên
Contents
- Market Overview ……………………………………………………………………..
- Competitors …………………………………………………………………………..
- Netflix’s SWOT Analysis …………………………………………………………….
- The research objective(s) ……………………………………………………………..
- List theories names …………………………………………………………………...
- Focus group …………………………………………………………………………..
- Data analysis (Insights) ………………………………………………………………
- Recommendations …………………………………………………………………...
- Limitation …………………………………………………………………………...
- References …………………………………………………………………………..
- Appendix ……………………………………………………………………………
Market trend The development of the Covid 19 pandemic has put a quarter of the global population under lockdown leading to an extreme increase in demand for entertainment, including watching films. Grand View Research (2021) stated that the number of people who use video streaming services increased 10% during the lockdown.
2. Competitors Key competitor: Illegal streaming websites The pirated streaming websites have been captured by the Vietnamese movie-watching demand early since the copyright streaming platform has not been launched. These sites have become Netflix's most formidable rivals, which provide free movie-watching services in exchange for displaying ads during the watching process. One of the most visited websites is Phimmoi, which has been operating for nine years. Therefore, these no-copyright websites have attracted a large number of visitors and formed the habit of watching pirated movies in Vietnam. According to SimilarWeb's analysis, Phimmoi has a massive amount of monthly access ranging from 60 million to 80 million (Vu, 2020). The illegal streaming websites target the young generation in the ages between 18 and 29, such as students and young workers who are dynamic and spend the majority of their time watching movies online (Q&Me, 2017). The audiences of pirated websites come from various socioeconomic backgrounds, particularly those with low and intermediate incomes.
Competitors’ SWOT Strengths Opportunities
- Free streaming service fee (Man, 2021)
- High recognition with popular coverage (Man,
- High updated rates along with Vietnamese subtitles (Phan, 2021)
- Big brands paying for marketing advertisements (72%) on pirated websites (DepartmentOfBroadcasting, 2018) → maintain operating
- Vietnamese habits of using free content (VietnamInvestmentReview, 2019). Weaknesses Threats
- Watching ads in exchange for paying fees (Trang,
- Limited films due to the lack of copyright (TayNinhNews, 2020)
- Low movie quality (TayNinhNews, 2020)
- Weak consumer privacy (Phan, 2021)
- Stricter government control over copyright law in the future (Tran & Le, 2019)
- Substitutions for free services of copyright streaming websites (Hieu, 2021)
- The awareness improvement in watching ethical content is increasing (Hieu, 2021)
4. The research objective(s) Problems: As figured out Netflix's weaknesses above, we searched more for reviews from filmaholic groups on the Internet (image 2) and also conducted interviews. We realized that Netflix is facing two main problems: ● Netflix's subscription price is still high compared to the general budget of young Vietnamese users. ● Although many youngsters are aware that watching pirated streaming websites is unethical, they still use them. Objectives: In this report, we identified two main research objectives: ● Increase the number of Netflix users. ● Increase the rate of people using legal streaming services. 5. List theories names: ● The reference group (Chapter 7): the participants' behaviors are influenced by a group's perspectives. ● Perception (Chapter 8): consumer exposure and attention to marketing stimuli and ends with consumer interpretation. ● Cognitive Learning - Modelling (Chapter 9): show the influence of opinion leaders on consumers' perception. ● Maslow's Hierarchy of Needs (Chapter 10): function packages suit different customer needs. ● Fear appeals (Chapter 11): create advertisements affecting customer's guiltiness of watching illegal streaming websites. ● Lifestyle (Chapter 12): understand the habit of watching pirated websites. ● Nominal decision making - brand loyal purchase or repeat purchase (Chapter 14): provide recommendations for maintaining the loyalty and repurchases of customers.
● Brand loyalty purchases (Chapter 14): investigate how to maintain the loyalty of consumers based on their dissatisfaction responses. ● Dissatisfaction responses (Chapter 18): identity which factors influence consumers not to purchase Netflix. ● Brand identification (Chapter 18): the brand reflects and reinforces some aspects of consumers’ self-concept.
**6. Focus group
- Data analysis (Insights)** 1. Netflix users feel luxurious, premium, and proud as Netflix is a high-end service, and they have high respectful behavior of copyright movies Netflix has oriented itself as a high-end product, which is originally from the U.S and has high brand recognition. The price of the package offered by Netflix is considered higher than the general price of other websites in Vietnam. For example, FPT Play's price packages range from 50.000 to 140.000 VND monthly while Netflix nearly doubled. As a result, users usually feel relatively luxurious and have a first-class experience by streaming on Netflix. The interview also shows that as having an increase in income, many young people tend to purchase more premium products to enhance their living standards. In addition, some respondents feel proud when using Netflix, a copyright service, since it is following their perception of respecting copyright content and condemning content theft. It can be concluded
8. Recommendations Based on the insights and information from the interviewees, the suggestions for Netflix's problems would be: ● Firstly, to increase subscribers: For the Premium packages, Netflix should keep the high price to maintain their high positioning. In addition, they should provide full-option services for this package and create the unique functions that only consumers who pay for this can have. Featuring unique functions will help satisfy customers' need to express themselves as feeling exclusive and luxurious when paying for the Premium package (level Esteem in Maslow's Hierarchy of Needs). For normal packages, Netflix should execute more sales promotions such as 'buy 6-month packages, get 1-month free' (like FPT Play does) to attract more consumers. Moreover, Netflix can consider promoting student packages (e.g., CGV's U22 campaign). These packages should offer 50,000 to 70,000 VND as the price range that most interviewees, who are students, are willing to pay. These packages should have essential functions that can meet the needs (level Psychological in Maslow's Hierarchy of Needs) of a good watching movies experience (i.e., moderate to good resolution is one of their impressions about Netflix) Netflix can create the "Premium Mini" package like Spotify does (2,300 VND/day) as consumers may be more attracted by the promotion of super low prices. By doing this, more people can reach and experience Netflix, and then gradually, it may increase the probability of purchasing the Premium package for long-term use. This package is also suitable for busy people, who do not want to waste money for the whole month while being able to watch in a few days. Since Netflix non-users, even the users, tend to watch films on other movie platforms (including illegal websites) instead of Netflix because the brand can not satisfy their needs. Hence, Netflix must understand the Vietnamese customer psychology and demand. Netflix can update more contents that match the preferences of Vietnamese viewers, such as Vietnamese, Korean, Chinese movies, or some movie genres that match local viewers. By doing this, Netflix can sustain its growth and strengthen the loyalty of consumers.
Besides, the payment methods also have a significant impact on the customer's purchasing process. Therefore, Netflix should offer more subscription payments via domestic cards, e-wallet, or other familiar ways to Vietnamese people. ● Secondly, to increase the probability of consumers taking action in protecting copyright movies Netflix can promote fear-appealing advertisements to emphasize that using illegal websites is unethical and disrespectful, which can cause users to feel guilty after watching it. Young customers' perception can be influenced by the KOLs that they had a certain loyalty to. Thus, it would be effective for Netflix to use celebrities, movie reviewers, or influencers to encourage them to fight against piracy issues. Gradually, Vietnamese users may change their mindset and get involved in legal streaming services.
9. Limitation To get a more general result, further research papers should interview the bigger sample size and diverse backgrounds and ages. This report is done using online surveys; all we can get is the raw information from the interviewees. Thus, further researchers should do the focus group interview to examine the customers' attitudes toward the chosen brand and discover more hidden information.
Luu, Q. (2020). Nạn mua bán 'lậu' tài khoản Netflix nở rộ. VN Express. Retrieved from https://vnexpress.net/nan-mua-ban-lau-tai-khoan-netflix-no-ro-4085295.html Le, D. (2021). Netflix là gì? Ưu nhược điểm và Các gói cước tại Việt Nam. Dien May Xanh. Retrieved from https://www.dienmayxanh.com/kinh-nghiem-hay/netflix-la-gi- Mothersbaugh, D. L., & Hawkins, D. I. (2015). Consumer Behavior: Building Marketing Strategy (13th ed.). New York, NY: McGraw-Hill Education. Man, C. (2021). Survey: Vietnam online piracy among highest in SE Asia. Survey: Vietnam Online Piracy among Highest in SE Asia. Retrieved from https://advanced-television.com/2021/05/17/survey-vietnam-online-piracy-among-highest-in- se-asia/ Netflix. (n.d.) How Netflix’s Recommendations System Works. Retrieved from https://help.netflix.com/en/node/ Nguyen, T.T. (2020). How Netflix Can Raise Its Brand Awareness And Affect Consumer Behaviour In New Market Case Vietnam. Lapland University of Applied Science Phan, T. C. (2021). Xem phim web lậu: Lợi bất cập hại!. Thanh Nien News. Retrieved from https://thanhnien.vn/van-hoa/xem-phim-web-lau-loi-bat-cap-hai-1413106.html Q&Me. (2017). Khảo sát về hành vi xem videos trực tuyến. Q&Me Vietnam Market Research. Retrieved from https://qandme.net/vi/baibaocao/khao-sat-ve-hanh-vi-xem-videos-truc-tuyen.html Q&Me. (2020). Vietnam video streaming market study. Q&Me Vietnam Market Research. Retrieved from https://qandme.net/en/report/vietnam-video-streaming-market-study.html TayNinhNews. (2020). Các website phim lậu 'chết' dần tại Việt Nam. Retrieved from https://baotayninh.vn/cac-website-phim-lau-chet-dan-tai-viet-nam-a124450.html Tran, A. D., & Le, X. L. (2019). Vietnam: Is site blocking the solution to online piracy? Retrieved from https://www.managingip.com/article/b1kbm1l4gl5zx5/vietnam-is-site-blocking-the-solution-t o-online-piracy Trang, T. (2021). Phim lậu và câu chuyện “muôn thuở” về bản quyền. Van Hoa News.
Retrieved from http://baovanhoa.vn/giai-tri/%C4%91ien-anh/artmid/484/articleid/41250/phim-lau-va-cau-ch uyen-%E2%80%9Cmuon-thuo%E2%80%9D-ve-ban-quyen Vietnam News. (2020). Netflix collaborates with Skyline Media to expand Vietnamese movies selection. Retrieved from https://vietnamnews.vn/life-style/716682/netflix-collaborates-with-skyline-media-to-expand- vietnamese-movies-selection.html VietnamInvestmentReview. (2019). Netflix cannot find grip on Vietnam. Retrieved from https://vir.com.vn/netflix-cannot-find-grip-on-vietnam-65993.html Vietnam Business. (n.d.). Netflix is now the #2 streaming services in Vietnam. Retrieved from https://www.vietnambusiness.tv/marketing-media/articles/1992/netflix-is-now-the-2-streamin g-service-in-vietnam Vu, T. A. (2020). Website xem phim lậu lớn nhất Việt Nam chính thức bị chặn. Sao Star. Retrieved from https://saostar.vn/cong-nghe/website-xem-phim-lau-lon-nhat-viet-nam-chinh-thuc-bi-chan- 58924.html
Group 1: Questions for Netflix-users Question Thanh Huy Kim Ngan Where do you know Netflix from? friends, and see the Netflix’s ads on Facebook, Youtube friends What comes to your mind first when mentioning Netflix? Expensive, paying, high quality, 4K, no ads Luxury, premium because Netflix is a copyrighted and paid movies platform How do you feel when introducing to other people that you are using Netflix? Cool, feel more classy because most of my friends tend to watch movies on pirated websites Feel like “I’m on the next level”, more luxurious than those using illegal websites Why do you decide to pay for Netflix to watch movies? HD, have stop-in-place mode, no ads Variety of movies content, HD When buying a Netflix account, do you ask your friends or family’s opinions about the experience? No, but I watch the reviews on Youtube or the movie review channels Yes, my friends who have used it before Are you satisfied or dissatisfied with watching on Netflix? Both Why is it satisfying? Because of the convenience, Netflix has a stop-in-place mode, so I can watch that movie continuously without skipping to the last part High-quality of both content and images **Why is it dissatisfied? + Payment method: Inconvenience. Because I don’t have a Visa or Mastercard → Paying through my friend
- Movies content: slow update; some films are only available in other countries
- Price: If I don’t have enough friends to share with, the cost for each month is very high
- Payment method: Can only pay by Visa or Mastercard → ask someone else to pay the fee for me
- Movies content: outdated, slow update, some films are only available in other countries
- Price: Because I’m just a student, so the price that Netflix offers is too high for a month Is exclusive content available only on Netflix one** No, because the exclusive content of Netflix is not that good and attractive Yes, because some exclusive content like Netflix Original is nowhere available
of the reasons you choose Netflix? Besides the exclusive movie’s content, do you care about copyright issues? No, I just watch because it can satisfy my needs Yes, and I also condemn organizations or individuals who watch movies without copyright So do you use Netflix because you think you are a person who respects copyright protection? Yes, I think that we should not watch movies on pirated websites. Moreover, Netflix has many genres of films. In terms of price, what is the amount of money you think is appropriate to pay for Netflix in one month? I think Netflix should reduce ⅓ of the current fees If I don’t share accounts with my friend, I believe 50.000 - 60.000 VND for each person in 1 month is appropriate On a scale of 1-5, how much do you rate for Netflix’s price?
Do you watch any other movie websites besides Netflix? Why I also watch on Illegal websites because some movies are not available on Netflix VieOn, because there is some movies are exclusive to VieOn, and Netflix does not have What do you expect Netflix to change in the future? Do not delete the old films and should reduce the price should have more Korean, Chinese movies and newer series, Netflix VN should have more Vietnamese movies, especially need to reduce its high price If other platforms offer lower prices than Netflix, do you want to change? No, because I am used to watching on Netflix No Group 2: Questions for Netflix-non-users Question Khanh Vi Nguyen Khoi Thao Nguyen If you do not use Netflix, what movie platforms do you use? Phimmoizzz, Phimbomtan Galaxy Play, Phimmoizz, Motphim FPT Play, We TV, Phimmoizzz, Dongphim, Motphim
don't want to tell) watching pirated websites is not a big problem. Not many people have enough financial capability to pay for these leisure activities Do you have any problems or difficulty using these websites? The ads cover the page, slow movie loading Certainly, yes. There are many problems, including low quality, blurry images, slow movie loading... The computer may get a virus when accidentally clicking on advertising links, many ads that block the view Do those factors affect your movie-watching mood? Yes, it makes me feel boring, frustrated, and uncomfortable to wait for the loading It negatively affects my mood and wastes my time sometimes Yes, very annoying Are you concerned about movie copyright issues? Do you think watching movies without copyright is normal or a bad thing? Yes, it is a bad thing I don’t care much about the copyright but I know watching films without copyright is not good. This is considered as being disrespected to the filmmaker or film production Yes, it is not good Copyright is one of the hot issues nowadays, so what do you think when many young people still decide to use pirated websites? First, it loses the value of the film as well as the filmmaker's effort. Secondly, the quality of the film is not good, sometimes it is garbled or conveys false content. However, because it’s free, so many young people still use it As I mentioned above, not many people have money to pay the fee for watching movies. Another reason is that an application usually does have all the films meeting the demand of users so users tend to choose the pirated websites to have a chance to enjoy all the movies they want Because I also watch it, I think it’s normal. It is true that if you watch pirated movies, the quality of the movie will be bad and there will be many ads. But if you want to watch the film without spending money, you have to accept it Have you ever thought of a platform where you can both comply with copyright policies and have a better streaming experience? Absolutely yes If there were an application that met most customers’ demands, I would pay a fee to use, which shows my respect to the filmmakers Yes, if I have more money
Have you ever heard about Netflix? from who? Yes, through my friends, ads, Facebook Yes, through my friends Yes, through my friends Why do you not use Netflix? Because I’m a college student, I do not have enough financial condition to afford the monthly Netflix account. It is over my budget for entertainment. because the price is not affordable Because it’s too expensive for a student Will you use Netflix if it has the same price as the other movie platforms? Absolutely yes Maybe yes Yes, if it is equal to FPT Play’s price Price range? How much do you think will be appropriate and worthy to spend for a high-quality-view (HD) legal streaming platform monthly? 50.000 to 80.000 VNĐ if I use it frequently About 50.000 - 70. VNĐ
50.000 - 70.000 VND
Why do you still not use Netflix even though it offers an account-sharing mode to save money? Finding someone to share an account is not easy I just want to register with my own profile (privacy). Sharing an account makes me feel unsafe and I am afraid of losing the account while using it Because I don't really need it, it's still fine to watch movies on pirated websites Are there any reasons other than the high price that makes you not choose Netflix? No, price only No, price only No, the biggest problem here is the high price
