Games are like books, each with a story-line to follow (of varying degrees of quality) and characters to immerse yourself with. So in a way these games developers have developed a great deal of customer loyalty with me and convinced me to make purchases of their products each time they come out with newer versions. However, some of my games are played on the XBOX platform and as such to play online I have to purchase a gold membership annually. My wife of course thinks this is a waste of money... You, I hope, will explain to her why this is not the case!
http://www.computerandvideogames.com/359067/xbox-live-membership-jumps-15-per-cent-in-single-year/
My Question is as follows: Identify what is meant by a repeat purchase and Assess the reasons why XBOX Live has so many repeat purchases year on year whilst PS3 has a free online gaming option.
Repeat purchase is the buying of a product by a consumer from the same brand which was also bought previously on another occasion. A repeat purchase is usually a measure of loyalty to a brand by consumers and can be taken into account by marketing research professionals to look at the businesses success. XBOX Live has had an increasingly amount of repeat purchases throughout the year because of their customers loyalty and the added services that come with it, the idea of it being more premium than the PS3 attracts the customers and it is also known to be a better quality than PS3 and the gaming console is known to be of higher preference. Furthermore because of the increasing preference and added services that come with the console there has been so many repeat purchases. However PS3 has a free online gaming option allowing you to communicate with other users, consumers would much rather prefer an XBOX, due to the extra services.
ReplyDeleteWell done for applying your knowledge of customer service and brand loyalty. Are you sure that there are added services with XBOX live compared to the PS3 version? Have you any information to back up that is is of a better quality? In your exam making generalized statements can lose you marks. I need to see some form of opinion with at least two good reasons why you are correct whilst considering any other reverse arguments that could be made for you to break into the B-A banding.
DeleteRepeat purchase is when a consumer buys the same product of the same brand as he did on a previous occasion. This may occur because of the consumers loyalty to a certain brand or product type due to the consumers preferences or positive previous experience associated with this brand.
ReplyDeleteIn the case of Xbox annual fees, consumers may prefer to buy it because they are used to Xbox and don't want to change to PS or they've got used to it and have their friends on it too therefore they keep the Xbox. As well as that Xbox online gaming may be better quality and offer more for the user than PS.
Repeat purchase is when a consumer buys the same product of the same brand as he did on a previous occasion. This may occur because of the consumers loyalty to a certain brand or product type due to the consumers preferences or positive previous experience associated with this brand.
ReplyDeletePeople may feel that by being s member , they will get better service from xbox . Howver i think Mrs Oates is right .
Hi Medisa, You need to apply your knowledge to the case-study itself. You cant just say I think so and so is right...
DeleteRepeat purchase. Product purchased by a consumer; from same brand previously bought on another occasion.
ReplyDeleteXbox live may have had repeat purchases due to customer loyalty. Customers may have enjoyed a certain service therefore they would purchase it again.
Arguably people using Xbox live would not change to Ps3, this may be because, they may have more friends on Xbox live, or that they are more used to playing with Xbox live.
Majority of gamers would prefer to play online as finishing the story line over and over again may get a bit boring. Due to this reason gamers may need to experience something else such as online gaming. They will therefore have no choice than pay for the service.
Hi Suleyman, 2 good points well made! You need to expand on them a little more and make sure you are applying to the specific case study in front of you. Where are the figures from the case study?
DeleteA repeat purchase is when a consumer buys the products of the same brand continuously. It’s a good measure of customer loyalty to a brand and can be used in the evaluation of a business. In this case all the xbox users have developed great customer loyalty with the brand, even know they could get the online features with PS for no extra cost to the customer. This means that xbox must be very aware of their market and understand the needs/wants of their customers, they also must be aware of their competitors which enables them to offer particular features that their competitors perhaps don’t. Furthermore because xbox charge a higher price for services, customers may think that they are receiving a higher quality product than other consoles.
ReplyDeleteOverall i would say that membership rates have been kept at very high rates as customers are willing to stick the brand due to customer loyalty, which derives from the fact that xbox knows their customers .