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Study Finds Intense Amazon Prime Price Hike Backlash

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Amazon Prime's price increase—from $79 to $99 a year—has been met with the expected grumblings and declarations of "I shan't be renewing" across forums and social. But one report suggests the company aimed too high with the 25% hike. Robert Passikoff, the pres of customer loyalty consulting agency Brand Keys, told CNBC, Amazon's rating fell from 93 percent to 83 percent in the two days following the price hike. He noted, "Based on immediate Prime member reactions, they may have underestimated the negative effects of the increase."

As Forbes points out, the extra $20 is equivalent to $1.67 a month, and Amazon even teased a $40 bump to make the actual one more palatable. Still, frustrated customers cite the fact that they're not getting new, tangible services despite all the buzz around fresh initiatives in the works. Also, some states are now paying sales tax and two-day shipping can often take more than two days. Amazon's own forum has collected a large brunt of the negative comments.

And finally, surprise: People don't like paying more for things that they used to pay less for. They don't like paying more for services either. To figure out if you're paying too much for things and services with Prime, Slate created a neat little widget to calculate value and make an informed "to renew, or not to renew" decision.
· Amazon Sees Backlash Among Prime Members [CNBC]
· Amazon Prime Raised Prices the First Time (For Students Too) [Racked]