$7\mathrm{.}10.$ Customer Bad News: Announcing a Price Increase

$($L$.$O$.1,2,3,$ and $4)$

Select a product or service that you now use $($e$.$g$.,$ Internet or cable service, water or electricity, propane or natural gas, smartphone or landline, or car insurance$).$ Assume that the provider must raise its rates and that you are the employee who must notify customers. Should you use an e$-$mail, a letter, company website, or blog? Decide whether you should use the direct or indirect strategy. Gather as much information as you can about the product or service. What, if anything, justifies the increase? What benefits can be cited?

For inspiration study the example below. Netflix announced the most recent increase in its subscription price to existing customers via e$-$mail.

Hi Gabby, We hope you have been enjoying your Netflix membership. We are writing to let you know about an upcoming change.

Your monthly price is increasing to $$12\mathrm{.}99$ on Tuesday, May $21.$ Why? We$$re hard at work improving Netflix so that you can have even more great TV shows and movies to enjoy.

Here$$s to watching what you want, when you want, where you want.

You can change your plan, or if you do not wish to continue your membership, as always you can cancel any time at netflix.com$/$cancel$.$

We$$re here to help if you need it$.$ Visit the Help Center for more info or contact us$.$

$$The Netflix Team

YOUR TASK.Analyze the Netflix email announcing the price hike. Does the message follow the practices recommended in this chapter? Prepare your own rate increase announcement. Submit it along with a memo explaining your rationale for the strategy you chose and include your analysis of the Netflix example.