Kindle price cut with ads
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 involved advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. The Kindle with Special Offers is slated to ship May 3. Target and Best Buy will sell the advertisement-supported version of the Kindle 3 in stores at that time.
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 many might have about the kindle with ads. 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 is not 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.
Importance of a price
TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. 99 is a magical number. Most marketing would suggest this.
This isn't real anymore though according to research done at the New York Columbia Business School. 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
Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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