By now you have probably heard of Angie’s List. Angie Hicks started the company in 1995 after a friend moved and had trouble finding reliable contractors. Originally started in Columbus, Ohio, the company has expanded to other national markets. There is a subscription fee to belong to this list that includes personal recommendations.
1. How do Angie’s List members “reap benefits for their bucks”? Discuss why you believe her business model has been successful.
2. How does Angie’s List take precautions to prevent manipulation of reviews? Would this be important to you or would you prefer a free service?
3. Based on the video, what did Ms. Hicks suggest that companies should do with a bad review?
Yamshon, L. (2011). Angie’s List: Is the Service Site Worth Its Membership Fee?, PCWorld, Sep. 5 (Retrievable online at http://www.pcworld.com/article/237331/angies_list_is_the_service_site_worth_its_membership_fee.htm)
CNN Video (2012).Angie’s list thrives despite economy, July 31. (Retrievable online at http://www.cnn.com/video)