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Valuing Features in Retail Membership and Subscription Programs

A Brattle team conducted a conjoint survey examining consumers’ willingness to pay for individual membership features at leading US big-box retailers, including Amazon, Walmart, Costco, and BJ’s Wholesale. The results demonstrated that bundling additional benefits into memberships significantly enhanced perceived value, while a la carte pricing drew negative consumer reactions. In a parallel study conducted in Mexico, the experts found even stronger demand for membership features that are still emerging in that market, such as two-day shipping.

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