Putting advertisements on a kindle; pay less
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. The Kindle with Special Offers is slated to ship May 3. 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.
There were many responders to an article by the Christian Science Monitor that several might have about the kindle with advertisements. The price of books was brought up by one reader that states kindles for free with advertisements would be okay with $0.99 books. Several 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.
The price is needed
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.
The Columbia Business School in New York did research on this though. It showed this might not be 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. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not seem as manipulative to consumers.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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