Strategy question

You are PM at Amazon and you are asked to change the pricing for the Prime membership. How would you go about it?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Pricing strategy process: research, segmentation, and rollout approach.

Clarify the goal: revenue growth or aligning price with rising delivery and content costs.
Segment members by usage intensity, e.g. heavy shippers and streamers versus light users.
Research willingness to pay via a controlled price test in a limited market before a full rollout.
Consider a tiered approach, e.g. a lower-cost tier with fewer perks, instead of a blanket increase.
Define rollout: grandfather existing members for a period, and avoid timing near major shopping events.
Define success as net revenue after accounting for churn.

Proposes testing in a limited market before a full price change, rather than a blanket global rollout.
Considers a tiered pricing structure instead of a single blanket increase, giving price-sensitive users an option.
Names a rollout tactic, grandfathering existing members, to reduce backlash and churn risk.
Picks net revenue after churn as the success metric, not just the higher sticker price.

Chapters of the AI PM course that teach what this question tests.