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Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle gadget. Once the $114 Kindle with Special Offers ships May 3, Amazon should improve its 60 percent share in the e-reader market. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be advertisement-supported. Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Putting ads on a kindle; pay less



The first generation Amazon kindle in 2007 cost $399. This is the first time, however, that a price reduction will include the placement of ads on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. The Kindle with Special Offers is slated to ship May 3. The Kindle 3 can be put in stores then. Both Best Purchase and Target will carry it.

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.


There were several responders to an article by the Christian Science Monitor that many may have about the kindle with advertisements. One reader argues for a free advertisement-based Kindle with $0.99 books, but that reflects another thorny issue concerning the price of electronic books. 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 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.


The price is needed



TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. 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 products. This is because they didn't seem as manipulative to customers.

Articles cited



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


Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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