Saturday, July 31, 2021

DID AMAZON MISCALCULATE WITH “PRIME” RATE-HIKE?

March 19, 2014 by · 1 Comment 

Subscribers to Amazon Prime may like the fact that the company is now beginning to offer them original television shows, that it is delivering merchandise in some cities on Sunday, and that it is exploring the possibility of using drones to convey packages to customers. But they’re not too keen on paying extra for those extras, according to a survey by Brand Keys reported today (Wednesday) in Home Media magazine. While Amazon has ranked No. 1 in customer satisfaction since Brand Keys’s first survey 16 years ago, it dropped out of that position this month after Amazon announced that it is raising membership fees for Amazon Prime from $79 to $99 per year. Analysts indicated that the price hike was triggered by the high cost of original content for its streaming service. “Based on immediate Prime member reactions, [Amazon] may have underestimated the negative effects of the increase,” Dr. Robert Passikoff, president of Brand Keys, said in a statement. “When a brand misses the mark when it comes to consumers’ expectations, ‘expectation’ quickly becomes ‘disenchantment,’ and based on these assessments. Prime members seem really disenchanted with the Amazon brand right now,” he added.