EHarmony: more than traditional internet dating.

Gupta, Atul ; Murtha, Rebecca ; Patel, Niharika 等

CASE DESCRIPTION

This case will allow students to analyze marketing strategy and target markets, be informed about and able to discuss legal and ethical issues in the marketplace and also about branding of a company and how the brand can continue to keep the company going one way even if going another way is in the company's best interests. This case has a difficulty level of three to four and is best utilized in higher-level undergraduate or graduate courses. This case is designed to be taught in one and a half class hours with students having two hours of out-of-class preparation.

CASE SYNOPSIS

EHarmony is an online dating company that was started in 2000, under the premise that it matched couples scientifically on "29 dimensions of compatibility." Unlike other dating sites, eHarmony focuses specifically on creating lifelong "matches" and has marketed the company accordingly. Originally, eHarmony was based on strong Christian principles, using the number of marriages produced from the site as a marketing tactic. However, competition and a more mature market have led the company to expand in order to survive and still hold a competitive advantage. Now, it has gone after the secular market in order to compete with the largest online dating company, Match.com.

In trying to expand, however, eHarmony has made several mistakes. First, eHarmony has excluded gays and lesbians and been sued for doing so. They eventually settled out of court and agreed to provide gays and lesbians with a separate service for matching. Furthermore, other lawsuits allege that eHarmony's matching system is not scientific and allows online predators and scam artists to connect with unknowing singles. That case is still in the court system.

Another way that eHarmony has tried to expand is by creating specific sites for different countries. In Britain, it created a new method of matching for British singles, but for its Canadian and Australian sites, eHarmony utilized the same system as in the United States. Ignoring the sociological differences could be extremely detrimental to the company as a whole.

Finally, eHarmony has chosen to advertise in traditional ways, utilizing television and print advertisements instead of advertising online or creating applications for mobile devices. In doing so, eHarmony has missed out on a large part of the market--the younger generation that is constantly on the go and rely on mobile devices and computers rather than television and print.

INSTRUCTOR'S MANUAL

Teaching Objectives

This case has three objectives. First, it teaches the students to analyze corporate competitive strategy and analyze eHarmony's current one. Second, it teaches students about branding and marketing and leaves students with the decision of whether to expand the target market or not based on the current brand the company has created and maintained. Third, the case also asks legal and ethical questions and asks students to make the decision of when a company should be held accountable for the actions of its subscribers.

Curriculum Placement

This case would be best utilized in the following courses:

1. Corporate Competitive Strategy: this case deals with competitive strategy in a market with multiple providers. Students are asked to analyze strategy and make changes for growth and development of the company as well as for increased competition, especially from free sites.

2. Brand Management: with multiple providers and other services providing "online dating," eHarmony has created a brand based on lifelong matching instead of dating. How has this helped or hindered the company? Does the brand need to stay the same in order for eHarmony to continue achieving success?

3. Marketing: this case deals with the different types of marketing and how firms and companies choose with types to use for their products and services. Students are asked to analyze the effectiveness of the marketing strategy.

4. Business ethics: this case addresses corporate responsibility to its customers, especially for a service that its users pay for. It also addresses the discriminatory ethics of a business. Students are asked to evaluate the business ethics and make decisions accordingly.

Discussion Pastures and Timing

1. Analysis of Case Issues--10 minutes

2. Competitive Strategy--30 minutes

3. Brand Management and Marketing--25 minutes

4. Business Ethics--20 minutes

5. Conclusion--5 minutes

Potential Pitfalls

Because of the multiple facets of this case, it could be difficult to integrate all aspects into one class discussion. Furthermore, based on the class in which the case is being used, some facets might be more important than others. The instructor should formulate the best method for teaching the case and execute that method, even if it leaves one of the issues out of the class discussion.

Also, it could be very easy for some students to focus on the ethics of the case (such as the lack of same-sex matching, lack of corporate responsibility, etc.) and not discuss the rest of the issues as some of the ethics of the case are not necessarily well known. Therefore, it is recommended that the ethics discussion be tabled until the end unless the instructor feels the need to have the ethics discussion go longer.

DISCUSSION QUESTIONS

Marketing and Branding

1. What are the strengths and weaknesses of eHarmony's traditional marketing campaign?

Strengths--eHarmony is able to market to its target audience (adult singles who wish to settle down), while still maintaining its brand identity of providing matches instead of dates. EHarmony is also still a household name due to the traditional marketing. There are few who have not heard of the company.

Weaknesses--eHarmony misses out on the younger singles, some of which would be looking for matches instead of dates. Furthermore, by not marketing online, eHarmony misses an entire market of singles that are technologically savvy and up to date with the times.

2. Should eHarmony change its marketing strategy in order to incorporate younger singles?

Answers will vary for this question. Ideally, if eHarmony wants to expand its target market and gain more subscribers, of course it will change its marketing strategy. However, if students decide that eHarmony would rather preserve its brand image, it would make sense for some to answer that eHarmony should not change its strategy for the younger generation of singles. Answers should include a careful analysis of the situation.

3. Would expanding eHarmony's target market to include younger singles be detrimental to eHarmony's brand image? If so, what should eHarmony do to expand without sacrificing its brand?

Expanding eHarmony's target market could turn out to be detrimental to eHarmony's brand image. EHarmony has built a brand based on lifelong matching instead of just being an online dating site. However, it is important that those in charge look at the cost/benefit analysis and decide if brand image is more important than the growth of a company that has already fallen and is slowly losing market share.

4. Does eHarmony's long questionnaire and intensive process help to preserve its brand or does it detract from singles that are busier in life, but still looking for a life partner? Should eHarmony change this process to make it simpler for the user?

Answers will vary for this question. As long as consumers are willing to join eHarmony and go through the intensive process, it makes sense that eHarmony would keep its original process. However, if eHarmony begins to lose subscribers, it might want to rethink its intensive questionnaire. If students believe that the branding is most important, then it is unlikely that they would have eHarmony change its questionnaire, as it is an integral part of the eHarmony brand.

Corporate Strategy

5. Does refusing to research same-sex matching hurt eHarmony as a company?

Refusing to research same-sex matching can hurt eHarmony, as it will turn people away from the company that would have been subscribers. Homosexual singles are a large market that eHarmony is ignoring. Even now, it has not provided the same service to same-sex matches that it has been told to by law and any bad publicity could harm the company overall.

6. Has creating other sites that are country-specific helped eHarmony as a whole? Should the other sites (mainly Canada and Australia) be more focused toward demographics and sociological differences the way the UK site is?

Creating other country sites has helped eHarmony to better develop its corporation and brand image. Its British site has performed well, due in part to the new research into sociological differences in British society. EHarmony would benefit strongly from more research into its Canadian and Australian demographics and sociological differences. Doing so would make the site more representative of its users and would cater to the subscribers needs instead of simply having subscribers that fit into eHarmony's ideal mold.

7. Has eHarmony's refusal to expand its target market hurt in terms of competition?

EHarmony's refusal to expand its target market could hurt the competition because other sites are going specifically for the young singles. Dating sites and other matching sites have marketing traditionally and non-traditionally and have done their best to attract the markets which eHarmony has shunned.

8. How would you change eHarmony's corporate strategy? Would you focus more on company growth or on the preservation and development of the eHarmony brand?

Answers for this question will vary. Students should focus on theory and real-life examples to base their answers on. The answers should have evidence and analysis in order to back up the claims. If the students choose not to focus on growth, they should have a plan in order to keep the subscription count up so that the company will not flounder.

Business Ethics

9. Should eHarmony be held responsible for verifying the authenticity of its subscribers? Would it be different if it were a free site instead of being a paid one?

Answers will vary for this question. Ideally, the students will focus on the fact that eHarmony is a paid site and has more responsibility to its users as such. Thus eHarmony should be held responsible to some extent for verifying the authenticity of its subscribers and their interactions. The students might see the ethics differently if eHarmony were a free site instead of a paid one and their answers might reflect that.

10. What should eHarmony do in order to better verify the authenticity of its subscribers?

Answers to this question should reflect the understanding of the material. Students should be innovative and creative in their ideas; matching the consumer need for verification with the means that eHarmony has available. Answers should be reasonable and accurately reflect the importance of the ethical guidelines.

11. Is eHarmony's decision to not delve into same-sex matching an ethical problem? Should eHarmony have been forced to include same-sex individuals?

Yes, eHarmony's decision to not delve into same-sex matching is an ethical problem as well as a corporate strategy problem. Answers for this question will vary and should include the students' understanding of the situation. Students should acknowledge the importance of companies not being discriminatory as well as the legal implications of the decisions eHarmony has made.

12. Is it ethical for eHarmony to pass off its matching system as scientific when there is no real scientific basis?

Answers for this will vary based on student opinion. There are no legal guidelines to help answer this question as there has been no legal action taken against eHarmony so it will purely be opinion mixed with the facts of the case against eHarmony in this situation.

REFERENCES

Chemistry (2010). Subscription rates. Retrieved from: http://chemistry.com

Consumer Rankings (2010). The five best dating sites of 2010. Retrieved from: http://www.consumerrankings.com/dating/

eHarmony (2010). Frequently asked questions. Retrieved from: http://www.eharmony.com/about/faq

eHarmony (2010). Subscription rates. Retrieved from: http://eharmony.com

Match (2010). Subscription rates. Retrieved from: http://match.com

Online Personals Watch (2010). Match.com no longer top dating site, sends in the lawyers. Retrieved from: http://www.onlinepersonalswatch.com/news/2010/04/matchcom-no- longer-top-dating-site-sends-in-thelawyers.html

Pew Internet and American Life Project (2005). September 2005 Daily Tracking Survey/Online Dating Extension. Retrieved from: http://www.pewinternet.org/~/media/Files/Questionnaire/ Old/Online_Dating_Questions.pdf

Yahoo! Personals (2010). Subscription rates. Retrieved from: http://personals.yahoo.com

Atul Gupta, Lynchburg College

Rebecca Murtha, Lynchburg College

Niharika Patel, Lynchburg College