Subscriptions - McGraw-Hill Introduction to Business

23andMe Struggles to Turn Customers Into Subscribers

October 15, 2024

Since the discovery of DNA’s structure in the 1950s, scientists have predicted a future where doctors could analyze a patient’s genes to identify and even prevent certain diseases. The medical industry seemed to be moving closer to that goal in 2007 when 23andMe became the first company to release a direct-to-consumer genetic test. Named for the 23 pairs of chromosomes in human DNA, 23andMe analyzed saliva samples from customers to show their ancestry and predispositions to diseases like cancer and Continue reading →

Product Development, Marketing, Pricing, Ethics, Startups, Entrepreneurship, Product Distribution, Subscriptions, Genetics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Instagram Tests Subscription Service for Creators

January 28, 2022

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Influencers who amass huge followings on social networks like Instagram and TikTok can earn big money through sponsored posts and other partnerships with brands. But promotional opportunities do not come around every day, and often influencers must deal with inconsistent income as brands pay for exposure one month and then opt out the next. That’s why Instagram is testing a new service for content creators that will allow them to charge money to subscribers who will then have access to Continue reading →

Advertising, Instagram, Marketing, Influencers, Social Media, Subscriptions, Promotions

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Birchbox Shows the Downsides of Subscription Selling Model

November 9, 2021

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Birchbox launched in 2010 with a business model that was quite novel at the time: for a recurring fee, the company shipped small samples of beauty products to customers every month. The idea was to recreate the experience of shopping at a department store’s makeup counter where customers try out a variety of items before deciding what to buy. Once the subscriptions started rolling in for Birchbox, so did venture capital investment, with the startup raising nearly $100 million in Continue reading →

Sampling, Product Development, Promotions, Marketing, Product Distribution, Entrepreneurship, Subscriptions, Business models

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Sales of Subscription Services Skyrocketed during the Pandemic

June 24, 2021

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Last year, companies across all industries scrambled to figure out how to continue doing business during the coronavirus pandemic. As time went on, subscription services proved to be dependable profit sources given that they required customers to provide regular payments every month. Subscriptions to streaming platforms like Netflix and Disney Plus skyrocketed in 2020 while many restaurants also found success with membership models.

For instance, in early 2021 six eateries in the Washington, D.C., area joined forces to create Continue reading →

Product Development, Promotions, Marketing, Product Distribution, Entrepreneurship, Food & Drink, Subscriptions, Coronavirus, Forms of Business, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] How Subscription Services Became So Common

May 30, 2019

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From music and movies to everyday items like clothes and toilet paper, today’s consumers can order all sorts of products through monthly subscription services. But as more companies adopt this sales strategy, it’s possible that consumers could get tired of subscriptions once all the monthly fees start stacking up. This video looks at why these services have become so widespread and offers advice for consumers who feel they’ve taken on too many subscriptions.

Questions:

Why are more companies starting to Continue reading →

Subscriptions, Marketing, Pricing, Innovation, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos