Paying $25 less for an ad-based kindle
About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. To be able 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 Kindle 3 can be put in stores then. Both Best Purchase and Target will carry it.
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 many responders to an article by the Christian Science Monitor that several might have about the kindle with advertisements. One reader argues for a free ad-based Kindle with $0.99 books, but that reflects another thorny issue regarding the price of electronic books. Many experts say it is good that Amazon only has advertisements 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.
What is in a price
TechCrunch predicts that the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. Traditional marketing psychology suggests the ".99" price point is a magic number.
This is not real anymore though according to research done at the New York Columbia Business School. 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
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