Unique Original Articles » Amazon to release advertisement-supported Kindle for $114

Amazon to release advertisement-supported Kindle for $114

Author: Barbara Coswell

E-readers, tablets and other mobile devices are upending the traditional print industry, which suits Amazon just fine, as a result of the Kindle. Once the $114 Kindle with Special Offers ships May 3, Amazon should improve its 60 percent share in the e-reader market. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be ad-supported. Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

It is worth a discount for an ad based kindle?



About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. The price deduction never included advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The advertisement-supported version can be found in Best Purchase 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 ad-based Kindle. The price of books was brought up by one reader that claims kindles for free with ads would be okay with $0.99 books. The $25 discount is not enough, according to some people. Most experts' say it is okay though since the ads 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.


Importance of a price



Getting to the $99 Kindle for Christmas 2011 is important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. According to traditional marketing, 99 is magical number.

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 actually 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 goods. This is because they did not seem as manipulative to consumers.

Articles cited



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


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