How Can Amazon Raise Prime Membership Rates Without Alienating Shoppers?

Amazon.com may be finally facing a worthy adversary in the retail arena: itself. The online giant recently announced its intent to increase the $79 annual fee on its popular Prime membership by $20 to $40, but our consumer insights suggest that its shoppers aren't buying into the plan, signaling what could be a dangerous move in an already hypercompetitive retail environment where loyalty is hard to win and easy to lose. Among current Amazon Prime members, the majority (63 percent) indicate that the current $79 fee is their ceiling for the yearly service.