Is an advertisement-based Kindle worth $25 off standard price?
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 advertisements before this. Doing this, the e-reader market could be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The Kindle 3 will be put in stores then. Both Best Buy and Target will carry it.
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 ad-based Kindle with $0.99 books, however that reflects another thorny issue concerning the price of electronic books. The $25 discount is not enough, according to some readers. Most experts' say it is okay though since the advertisements only come up on the bottom of the home screen and on the screen saver.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
Getting to the $99 Kindle for Christmas 2011 is essential, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests the ".99" price point is a magic 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. There was a 3 percent increase in sales of dollar plus method products. This is because they didn't 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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