Prime Price Hike Hurts Amazon Brand Engagement

Amazon primeAmazon is the Brand Keys Customer Loyalty Engagement leader for online retail. However last week, the brand measurement firm reported that the company’s $20 price hike on its most loyal customers (Prime members) caused the Amazon brand to suffer a loss of engagement.

Amazon raised the cost of its innovative free shipping and loyalty program from $79 per year to $99.

In a Brand Keys survey conducted earlier this month (n=1,050 Prime members), the firm found some consumers were put off by the price increase: “the Amazon brand took a blow to its normally high overall brand engagement and loyalty evaluations. Assessments among Prime Members (versus the category Ideal @100 percent) were down 10 percent, from 93 percent to 83 percent.”

Brand Reputation’ and ‘Brand Value were two metrics in the survey that declined for Amazon. Brand Keys said in a public statement that Prime members were now “disenchanted with the Amazon brand” in the wake of the price increase.

Brand Keys contends that its metrics are predictive of future consumer behavior — implying that some people will use Amazon less than previously. We’ll have to see.

The company has few if any online rivals with comparable consumer trust or brand strength. That may be the calculated bet that Amazon has made.

Related Topics: Amazon | Channel: Retail | Statistics: Popularity & Usage


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn

Marketing Day:

Get the top marketing stories daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!