Is an ad-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. This is the first time, however, that a price reduction will contain the placement of ads 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 several will want. The Kindle 3 will be put in stores then. Both Best Buy and Target will carry it.
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.
There were many responders to an article by the Christian Science Monitor that several might have about the kindle with advertisements. 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. Another reader concurs that a $25 discount isn't enough to make up for the presence of advertisements, but one thing experts believe Amazon has done right is to isolate the ads 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.
Why everyone worries about a price
TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. According to traditional marketing, 99 is magical 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. Dollar plus brands seemed less manipulative to customers which is why the dollar plus method sold 3 percent more.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
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