It is worth a price reduction for an ad based kindle?
The first generation Amazon kindle in 2007 cost $399. The price deduction never involved ads before this. Doing this, the e-reader market could be breached making the iPad competition. The Kindle with Special Offers is slated to ship May 3. The ad-supported version can be found in Best Purchase and Target for the Kindle 3.
Founder and CEO of Amazon Jeff Bezos say it is a "chicken in every pot" move. Everybody will want the Special Offers $114 kindle:
"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. Another reader concurs that a $25 discount isn't enough to make up for the presence of ads, however one thing experts believe Amazon has done right is to isolate the advertisements 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.
Importance of 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. According to traditional marketing, 99 is magical number.
The Columbia Business School in New York did research on this though. It showed this is probably not the case anymore. The Columbia study showed that the "dollar-minus" approach bringing it down to 99 cents was not almost as effective as bring it up a penny for a "dollar-plus" approach. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands since the prices were perceived as being less manipulative.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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