Question

1. With myriad websites that offer price comparisons that exist for book and other e-tailers, is it possible for Amazon to maintain a strong customer base without an extreme emphasis on low prices?

Answer 1

• Answer: Yes. The customer experience is what helps Amazon to maintain a strong customer base and then paired with the ease of use, keeps people coming back. The partnership with JP Morgan Chase allows for ease of use when redeeming your cash rewards. The rewards pool and are able to be leveraged easily for purchases with Amazon. When you increase reward redemption, you increase brand loyalty. When I am in a retail location, their mobile app makes it easy to compare prices, and determine if I will make the purchase in-store or wait two days for delivery from Amazon. The decision is not always price dependent but more convince driven. Do I want to have to load this large item into my car and then drag it into the house? I could just let someone else bring it to my door step and then just merely drag it inside. Plus, when I need something and do not want to stop, I can just reach into my pocket and place the order. We are debating if Amazon can maintain a strong customer base when the company convinced us we need a device, which they hold all of the data for, that listens to us all day and then strangely we receive product suggestions from conversation we have had in our house.