Is an ad-based Kindle worth $25 off standard price?
The first generation Amazon kindle in 2007 cost $399. To be able to try and compete with the iPad in the e-reader market, the ads were put on it this time in the price deduction. There can be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The Kindle 3 could be put in stores then. Both Best Buy 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.
There were several responders to an article by the Christian Science Monitor that many might have about the kindle with advertisements. The price of books was brought up by one reader that claims kindles for free with advertisements would be okay with $0.99 books. Another reader concurs that a $25 discount isn't enough to make up for the presence of ads, but one thing experts believe Amazon has done right is to isolate the ads to the Kindle's screensaver and the bottom of the home screen.
"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
TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. According to traditional marketing, 99 is magical number.
However, new research from New York's Columbia Business School indicates that 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. Dollar plus brands seemed less manipulative to consumers which is why the dollar plus method sold 3 percent more.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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