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

Amazon to launch advertisement-supported Kindle for $114

Author: Barbara Coswell

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the business introduces the $114 Amazon Kindle with Special Offers. But there's a caveat for people, reports the Christian Science Monitor. The latest Kindle offering will be ad-supported. Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Is an advertisement-based Kindle worth $25 off standard price?



About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. 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. The Kindle with Special Offers is slated to ship May 3. Target and Best Purchase will sell the ad-supported version of the Kindle 3 in stores at that time.

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. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. Another reader concurs that a $25 discount is not 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.


Why everyone worries about 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. 99 is a magical number. Most marketing would suggest this.

However, new research from New York's Columbia Business School indicates that the advantage is more imagined than it is real anymore. The Columbia study showed that the "dollar-minus" approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a "dollar-plus" approach. There was a 3 percent increase in sales of dollar plus method goods. This is because they didn't seem as manipulative to consumers.

Citations



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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