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

Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle device. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be ad-supported. Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Is an advertisement-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 integrated advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The advertisement-supported version can 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.


There were many responders to an article by the Christian Science Monitor that several may have about the kindle with ads. 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. Another reader concurs that a $25 discount isn't enough to make up for the presence of ads, however one thing experts believe Amazon has done right is to isolate the advertisements to the Kindle's screensaver and the bottom of the home screen.

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


Price matters



The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. Traditional marketing psychology suggests the ".99" price point is a magic number.

However, new research from New York's Columbia Business School indicates that 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. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not seem as manipulative to consumers.

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


Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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