Paying $25 less for an ad-based kindle
The first generation Amazon kindle in 2007 cost $399. The price deduction never integrated advertisements before this. Doing this, the e-reader market can be breached making the iPad competition. 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.
Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most consumers have about an ad-based Kindle. One reader argues for a free advertisement-based Kindle with $0.99 books, but that reflects another thorny issue concerning the price of e-books. The $25 discount is not enough, according to some people. Most experts' say it is okay though since the advertisements only come up on the bottom of the home screen and on the screen saver.
"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.
The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. 99 is a magical number. Most marketing would suggest this.
However, new research from New York's Columbia Business School indicates the advantage is more imagined than it is real 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. There was a 3 percent increase in sales of dollar plus method products. This is because they didn't seem as manipulative to consumers.
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 Spinner