Rundle in the Jungle! Why Do People Subscribe to Amazon Prime? Analyzing the Combination of Flat Rate and Bundle Pricing within a Loyalty Program

dc.contributor.author Straubert, Christian
dc.contributor.author Sucky, Eric
dc.contributor.author Altewischer, Delia
dc.date.accessioned 2023-12-26T18:43:54Z
dc.date.available 2023-12-26T18:43:54Z
dc.date.issued 2024-01-03
dc.identifier.isbn 978-0-9981331-7-1
dc.identifier.other a2cf4334-234a-48fc-854c-965365a64a23
dc.identifier.uri https://hdl.handle.net/10125/106913
dc.language.iso eng
dc.relation.ispartof Proceedings of the 57th Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Electronic Marketing
dc.subject b2c e-commerce
dc.subject bundle pricing
dc.subject flat rate pricing
dc.subject loyalty program
dc.subject subscription
dc.title Rundle in the Jungle! Why Do People Subscribe to Amazon Prime? Analyzing the Combination of Flat Rate and Bundle Pricing within a Loyalty Program
dc.type Conference Paper
dc.type.dcmi Text
dcterms.abstract We analyze the flat rate and bundle pricing nature of the Amazon Prime subscription. Based on two customer surveys (n=2062, n=906) and using a best–worst scaling (BWS) discrete choice experiment, we determine how important the different Prime benefits are to the subscribers. We perform a correlation and cluster analysis. We find mostly very weak correlations between the importance scores of the different Prime benefits. This is beneficial for a bundle pricing model such as Amazon Prime. We also find that the importance scores of the individual benefits are only weakly correlated with the actual usage rates of the benefits. This is beneficial for a flat rate pricing model such as Amazon Prime. Furthermore, we see indications customers value having various benefits included in Prime, even if they do not use them. We also discuss how Amazon Prime fits into the business strategy of Amazon.
dcterms.extent 10 pages
prism.startingpage 4393
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