Is an ad-based Kindle worth $25 off standard price?
About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. The price deduction never included ads before this. Doing this, the e-reader market could be breached making the iPad competition. The Kindle with Special Offers is slated to ship May 3. The Kindle 3 could be put in stores then. Both Best Buy and Target will carry it.
It is "chicken in every pot" decision made with the $114 kindle with Special Offers according to Jeff Bezos, the Amazon CEO and founder:
"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.
There were many responders to an article by the Christian Science Monitor that many may have about the kindle with ads. The price of books was brought up by one reader that states kindles for free with advertisements would be okay with $0.99 books. Many experts say it is good that Amazon only has advertisements on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount is not enough.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
Importance of a price
Getting to the $99 Kindle for Christmas 2011 is very important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. According to traditional marketing, 99 is magical number.
The Columbia Business School in New York did research on this though. It showed this might not be the case anymore. The Columbia study showed the "dollar-minus" approach bringing it down to 99 cents was not almost as effective as bring it up a penny for a "dollar-plus" approach. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands since the prices were perceived as being less manipulative.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Article Source: JS2 Article Marketing