Unique Original Articles » Advertisement supported Kindle to ship on May 3

Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. Industry studies indicate the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the company introduces the $114 Amazon Kindle with Special Offers. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, could be advertisement-supported. Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Paying $25 less for an advertisement-based kindle



The first generation Amazon kindle in 2007 cost $399. 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. The Kindle with Special Offers is slated to ship May 3. The ad-supported version could be found in Best Buy and Target for the Kindle 3.

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.


Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most customers have about an advertisement-based Kindle. 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. Several experts say it is good that Amazon only has ads on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount isn't enough.

"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.


Why everyone worries about a price



The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number.

This isn't real anymore though according to research done at the New York Columbia Business School. 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 consumers felt greater trust for dollar-plus brands as the costs were perceived as being less manipulative.

Citations



Christian Science Monitor


csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle



Columbia Business School


gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main



Knowing and Making


knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html



TechCrunch


techcrunch.com/2011/04/11/amazon-kindle-99/



Kindle sales tripled after last price drop


youtu.be/PaAFm_fZQ2A


Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Article Source: JS2 Article Marketing


Spinit

All articles are submitted by users, we take no responsibility for the content of any articles. Users have given permission for others to use these articles in exchange for credit in the form of a link back to the author's website. For removal requests please contact us at http://www.jetpackedsupport.com