Question

Scenario 13.1. Redbox places its vending machines in easy-to-reach areas around pharmacies, grocery stores, discount stores, and more. Most customers of Redbox purchase video and game rentals around dinnertime, so the fact that many of the machines are located close to grocery stores is a strategic move that benefits both Redbox and the store. Redbox manages its selection by keeping track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays based on this information. Customers can also reserve movies online. Redbox attempted to engage in digital distribution to compete with Netflix, but the initiative failed. Redbox, however, is not giving up as it recognizes that digital streaming is the future. Refer to Scenario 13.1. Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a DVD while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers?

Answer 1

The Redbox kiosks that are located near shopping centers and grocery stores offer customers both convenience and experiences (nostalgia).

Step-by-step explanation:

It offers convenience because customers can easily access the DVDs and Blu-rays after shopping, so they end up leaving the shopping center with different kinds of products, for example, the groceries for the week and a couple of DVDs.

But it offers experiences (nostalgia), because while Netflix and other streaming services are even more convenient than a Redbox kiosks in front of a Wall-Mart, many people miss the whole experience of going out to rent movies, and a new trend is slowly developing of bringing back this type of activity.