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. May 3 is when the kindle will start with Special Offers. The advertisement-supported version could be found in Best Buy and Target for the Kindle 3.
Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a "chicken in every pot" move:
"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.
There were several responders to an article by the Christian Science Monitor that several might have about the kindle with ads. One reader argues for a free advertisement-based Kindle with $0.99 books, however that reflects another thorny issue concerning the price of e-books. Another reader concurs that a $25 discount is not enough to make up for the presence of advertisements, but one thing experts believe Amazon has done right is to isolate the advertisements 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.
What is in a price
The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. 99 is a magical number. Most marketing would suggest this.
The Columbia Business School in New York did research on this though. It showed this is probably not the case anymore. A dollar plus approach, adding a penny, was more effective than the dollar minus approach, taking a penny away. The Columbia study showed this clearly. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands because the prices were perceived as being less manipulative.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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