Paying $25 less for an ad-based kindle
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. In order to try and compete with the iPad in the e-reader market, the advertisements were put on it this time in the price deduction. May 3 is when the kindle will start with Special Offers. The ad-supported version can be found in Best Purchase and Target for the Kindle 3.
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.
An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. The price of books was brought up by one reader that says 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 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
The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. 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. The Columbia study showed that the "dollar-minus" approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a "dollar-plus" approach. 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
Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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