Kindle price cut with advertisements
The first generation Amazon kindle in 2007 cost $399. 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. There will be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The Kindle 3 will be put in stores then. Both Best Purchase 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.
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 ads 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
Getting to the $99 Kindle for Christmas 2011 is very important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests the ".99" price point is a magic number.
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. Sales of products that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands because the costs were perceived as being less manipulative.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Article Source: JS2 Article Submission Software