Unique Original Articles » Advertisement supported Kindle to ship on May 3

Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting pretty with its Kindle platform. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the business introduces the $114 Amazon Kindle with Special Offers. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, can be ad-supported. Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

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. May 3 is when the kindle will start with Special Offers. Target and Best Buy will sell the ad-supported version of the Kindle 3 in stores at that time.

Founder and CEO of Amazon Jeff Bezos say it is a "chicken in every pot" move. Every person will want the Special Offers $114 kindle:

"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 may 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. 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.


The price is needed



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.

The Columbia Business School in New York did research on this though. It showed this might not be the case anymore. The "dollar-minus" approach (down to 99 cents, for instance) was really less effective than "dollar-plus" price points (like $4.01), according to the Columbia study. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands as the prices were perceived as being less manipulative.

Citations



Christian Science Monitor


csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle



Columbia Business School


gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main



Knowing and Making


knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html



TechCrunch


techcrunch.com/2011/04/11/amazon-kindle-99/



Kindle sales tripled after last price drop


youtu.be/PaAFm_fZQ2A


Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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