Paying $25 less for an advertisement-based kindle
The first generation Amazon kindle in 2007 cost $399. In order 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 ad-supported version could be found in Best Buy and Target for the Kindle 3.
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.
Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most customers have about an advertisement-based Kindle. 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. Several 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 isn't enough.
"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
The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical 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 goods that used the dollar-plus method increased by 3 percent, and consumers felt greater trust for dollar-plus brands as the costs were perceived as being less manipulative.
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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