Montclair Video

As a local video store struggles with competition from Netflix and video-on-demand, how can a conjoint analysis help the owners to determine which plan will ensure the store remains competitive?
Raghuram Iyengar, Kamel Jedidi, Olivier Toubia  | Spring 2010
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The family-owned Montclair Video attracted loyal customers by providing a wide selection of movies and personalized recommendations, helping it fend off competition from movie-rental giant Blockbuster. That changed with the increasing popularity of Netflix, as well as a rise in on-demand cable content and the introduction of a similar pricing model from Blockbuster. The family was prepared to adopt new pricing and add rental services, but only if the strategy made financial sense. Upon the advice of a market research consultant, the owners launched a survey of store customers which utilized a choice-based conjoint analysis format. In this case students examine competitors' plans and analyze data from this survey to determine which services and fees will prove profitable while retaining clients.

Case ID: 100508
Supplemental Materials: Solutions Spreadsheets , Montclair Dataset
This case is used in core curriculum

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