Paying $25 less 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. 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. There can be Special Offers in the May 3 edition of the Kindle. It is a product several will want. 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 consumers have about an ad-based Kindle. The price of books was brought up by one reader that states kindles for free with ads would be okay with $0.99 books. The $25 discount isn't enough, according to some readers. 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.
Why everyone worries about a price
Getting to the $99 Kindle for Christmas 2011 is very important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests the ".99" price point is a magic number.
This isn't real anymore though according to research done at the New York Columbia Business School. 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. Sales of products that used the dollar-plus method increased by 3 percent, and consumers felt greater trust for dollar-plus brands since the costs were perceived as being less manipulative.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
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