You Make the Call3-33. What decision(s) do you recommend?3-34. What are some ways to implement your recommendation?3-30. What is the decision facing Amazon?3-31. What factors are important in understanding this deci-Baad on Tica Duryen, Tute-Preng Pine: Amns Pans ay Bayand Fre Seing" Sakilencan, Por , 2014, mpgakat.con01nampreime-anunantians-ayandating acceed Aps, 201, Amuoncan,Skout Amuan Pine pslwmun.con/phptustonlayhinieetes0anahthodlde2004 4160 acodApri 5, 201 Tayer Tep Shout Get the Anan Prime Se Carer Tme.com, ay 34, 2015, utine.comimonay3aarsion situation?3-32. What are the alternatives?nuanginestoe-ccud (cd Apl5, 2O Jsan Da Rey, "ine Nou Ha ome Amuasoget el RetaaDecenter 14, 2015, uecad Sanpine tecomanuos-sta pccend Aps, 201 Marketing in Action Case Real Choices at AmazonIn marketing, yesterday's success quickly becomes old news.How should one of the world's largest retailers plan to build onits' previous achievements? In the retail marketplace, it is be-coming harder for companies to differentiate themselves fromthe competition beyond simply price. Amazon is now facedwith this challenge and must develop offerings to protect andgrow its customer base. One of its primary offerings to meetthis task has been the creation of Amazon Prime. The serviceIn addition, periodically on select items sold by Amazon offersO percent APR financing with 12 equal monthly payments. Oneof the key benefits to Amazon is that compared to the use oftraditional cards like Visa, MasterCard, or AmEx, transactionprocessing costs for its Prime Store Card are lower.One of the best benefits that brick-and-mortar retailstores have maintained over online retailers is the ability toprovide customers with instant gratification. Amazon aimsto decrease that advantage through its services. Recentlyintroduced in select cities is Prime Now. a service that allowscustomers to receive their order within one hour for a fee of$7.99, or within two hours for no additional fee. Currently,the products available for Prime Now delivery are limited to15,000 to 40,000 available items, which may seem like a lotbut Prime members currently have access to millions of itemsto select from for two-day shipping. Prime Now is definitely aninnovative service, but in some markets it is faced with othercompetitors for on-demand delivery offerings, like GoogleExpress and UberRush.Amazon continues to establish more services under thePrime umbrella. Prime Pantry is an option by which memberscan fill a virtual box with groceries and household productsand have them delivered for $5.99 per box. Prime Music offersad-free access to playlists and a catalog of more than1 mil-lion songs and albums. Prime Photo provides unlimited photostorage on the Amazon Cloud. This wide variety of associatedservices draws the attention of numerous varied competitors,and the key question as Amazon move forward is: How willthe company successfully manage such a large portfolio of of-ferings? For success to be sustained over time, Amazon mustcarefully consider what long-term strategies are necessary tocontinue to make Amazon Prime a profitable winner in a com-petitive marketplace.U.S. on qualified purchases. The initial annual membership feewas $79 and also allowed discounted one-day shipping rateson those same purchases. In 2014, the fee was increase to $99and more services were added to increase customer value.Prime Instant Video allows customers to stream moviesand TV shows to their web browsers or multiple Amazon video-compatible devices. The current library of tens of thousands oftitles provides a wide array of choice to lure potential custom-ers. Subscribers can also purchase online video subscriptionsfrom premium content providers like Showtime, Starz, andother streaming entertainment channels. The objective of theadd-on services is to attract new customers to Amazon Prime ina crowded competitive environment. As of 2016, Netflix is theworld's largest provider of streaming video content with morethan 75 million subscribers. In addition, Hulu is a joint ventureof Walt Disney, 21st Century Fox, and Comcast's NBCUniversalthat similarly provides streaming services.One of Amazon's latest additions to its Prime service is thePrime Store Card. The card rewards subscribers with 5 percentcash back on all Amazon purchases. Or, in lieu of the 5 percentcash back, members can choose a tiered financing option forpurchases more than $149. In this plan, when customers reachcost thresholds they can avoid paying interest if the outstand-ing balance is paid within 6, 12, or 24 months, as applicable.

The capacity to develop and carry out a well-organized strategy that moves a company closer to its…

Answered: You Make the Call 3-30. What is the…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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