Unique Original Articles » Amazon to launch advertisement-supported Kindle for $114

Amazon to launch advertisement-supported Kindle for $114

Author: Barbara Coswell

E-readers, tablets and other mobile devices are upending the traditional print industry, which suits Amazon just fine, thanks to the Kindle. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the company introduces the $114 Amazon Kindle with Special Offers. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, can be advertisement-supported. Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Kindle price cut with advertisements



The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. This is the first time, however, that a price reduction will contain the placement of advertisements on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. There could be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The ad-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.


An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. 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 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.


Price matters



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 that 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. 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.

Articles cited



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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