It is worth a price reduction for an ad based kindle?
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. In order to try and compete with the iPad in the e-reader market, the ads were put on it this time in the price deduction. There can be Special Offers in the May 3 edition of the Kindle. It is a product many will want. Target and Best Buy will sell the ad-supported version of the Kindle 3 in stores at that time.
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.
An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. Another reader concurs that a $25 discount is not enough to make up for the presence of ads, but one thing experts believe Amazon has done right is to isolate the ads to the Kindle's screensaver and the bottom of the home screen.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
Why everybody worries about a price
The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. Traditional marketing psychology suggests the ".99" price point is a magic number.
However, new research from New York's Columbia Business School indicates the advantage is more imagined than it is real anymore. The "dollar-minus" approach (down to 99 cents, for instance) was really less effective than "dollar-plus" price points (like $4.01), according to the Columbia study. Dollar plus brands seemed less manipulative to consumers which is why the dollar plus method sold 3 percent more.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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