Kindle price cut with ads
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. The price deduction never involved ads before this. Doing this, the e-reader market could 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. The ad-supported version can 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.
Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most customers have about an ad-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. 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 isn't enough.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
The price is needed
The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. Traditional marketing psychology suggests that 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. 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. 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
Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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