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 advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. There can be Special Offers in the May 3 edition of the Kindle. It is a product several will want. Target and Best Buy will sell the advertisement-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. One reader argues for a free advertisement-based Kindle with $0.99 books, however that reflects another thorny issue regarding the price of e-books. Many 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 is not enough.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
Why every person worries about a price
TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. According to traditional marketing, 99 is magical number.
The Columbia Business School in New York did research on this though. It showed this is probably not the case anymore. The "dollar-minus" approach (down to 99 cents, for instance) was actually less effective than "dollar-plus" price points (like $4.01), according to the Columbia study. There was a 3 percent increase in sales of dollar plus method products. This is because they did not seem as manipulative to customers.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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