Kindle price cut with advertisements
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 contain the placement of advertisements on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. There could be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The ad-supported version can be found in Best Buy 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.
An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. 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. Many experts say it is good that Amazon only has advertisements on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount is not enough.
"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 essential, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests that the ".99" price point is a magic number.
The Columbia Business School in New York did research on this though. It showed this is probably not the case 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
Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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