Is an ad-based Kindle worth $25 off standard price?
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. This is the first time, however, that a price reduction will consist of the placement of ads on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. May 3 is when the kindle will start with Special Offers. The advertisement-supported version can be found in Best Buy and Target for the Kindle 3.
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.
An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. One reader argues for a free ad-based Kindle with $0.99 books, however that reflects another thorny issue concerning the price of e-books. The $25 discount is not enough, according to some readers. 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.
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 that the advantage is more imagined than it is real anymore. 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. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not 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.
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