Unique Original Articles » Amazon Kindle to ship with advertisements on May 3

Amazon Kindle to ship with advertisements 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. Industry studies indicate the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the business introduces the $114 Amazon Kindle with Special Offers. But there's a caveat for readers, states the Christian Science Monitor. The latest Kindle offering can be advertisement-supported. Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Putting ads on a kindle; pay less



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 included ads 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. Target and Best Purchase will sell the ad-supported version of the Kindle 3 in stores at that time.

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 advertisement-based Kindle. The price of books was brought up by one reader that states kindles for free with advertisements would be okay with $0.99 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 isn't enough.

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


What's 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.

The Columbia Business School in New York did research on this though. It showed this is probably not the case 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 products. This is because they did not seem as manipulative to customers.

Information from



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


Post resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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