Consumer

Behavior

Group ~ 2 
Ambika Anand          (MBA20084) 
Alok Kumar              (MBA20083) 
Anchal Saini              (MBA20087) 
Nitika Lugun             (MBA20114) 
Shweta Kerketta        (MBA20137) 
Saurabh Upadhyay    (MBA20241) 
Q:1).Try it yourself go to the stickK.com and set a goal for yourself ?

Step 1: Set a Goal – Step 2: Set Stakes -  Step 3: Set a Referee - 

Exercise Regularly No money at stakes On your Honor

Step 4: Ask for a support –

Invited/Tweeted via Twitter
Goal Added
 Stickk helps in following ways:
 Stick allowed users to create commitment contracts which
commits them to move closer to the goals at every point and 
if the consumers are not being able to do that, they are more
likely to lose money. So, the fear of losing out the finances
help them to reach maximum potential.
Q:2) How does stickK  Stick allowed the consumers to set a goal and it could be
anything. Even the user can create custom goals.
help consumers to  While setting a goal users set a time limit for achieving it and
accomplish their goals? they themselves decide whether they would be post weekly
reports or one-shot goal.
 Later the user set stakes based on their ability to achieve
goal. However, setting stakes was highly subjective.
 Users were required to set a referee which can be the
individual as well, who would update the progress report at
every point. And the report was believed to be true.
 Lastly the user can ask for support from friends, family,
Goldberg believed that getting support most likely increased
the chances of success.
Q:3) How does stickK make money does the company have a
viable business model?
In B2C model:
• It follows a freemium model wherein they
offer free services to gain prospects. The
source of revenue is the commission earned
from a transaction when users fail to fulfil
their contracts plus any other transaction fee
which stickk incurred
In B2B model:
• Direct sale  which follows an enterprise
solution model. The revenue model charged a
flat startup fee of $20000 and $50000 apart
from this it charged a monthly administration
fee of $10000 to $20000 which largely
depended on number of users. Apart from
this it offered customized solution.

Viable business model:

• 91% of its users claim that they are successful at achieving their goals
• It does not restrict itself to any niche resolution
• The company follows a commitment contract model. In this style they help people achieve their goal by various risk
aversion plans. They also take the support of friends and family such as referees and other supporters which has
proven to be a highly successful model.
 In B2C Model:
• Questionable recurring revenue stream- It is given in the case that
almost 82.8% of the contacts with stakes are success stories which
means that the revenue comes from just 17.2% of unsuccessful cases
In B2B Model:
• Labour Intense which can be eventually non-scalable- Goldberg
noted that such large contracts with corporations would require
Q:4) What do you see dedicated account managers and additional web developers, which
would add salary and infrastructure costs of about $85,000 per
stickK barriers to additional employee. StickK forecasted needing one new account
manager every six months for the client side of the business.
success? • Maximum product development required- Goldberg anticipated that
all future B2B clients would require their own private- label site.
• Stronger Competition- StickK's competitors are the websites that
allowed users to set goals and provided tools or incentives to help
them succeed. Like- SparkPeople, PEERtrainer, Virgin Pulse,
HealthyWage and Keas.