Unique Original Articles » Ad-supported Kindle to ship at $114

Ad-supported Kindle to ship at $114

Author: Barbara Coswell

Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle device. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, can be advertisement-supported. Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

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



The first generation Amazon kindle in 2007 cost $399. The price deduction never integrated advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The Kindle 3 can be put in stores then. Both Best Purchase and Target will carry it.

Founder and CEO of Amazon Jeff Bezos claim it is a "chicken in every pot" move. Everyone 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. The price of books was brought up by one reader that claims kindles for free with advertisements would be okay with $0.99 books. Several experts say it is good that Amazon only has ads on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount isn't enough.

"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



The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. 99 is a magical number. Most marketing would suggest this.

The Columbia Business School in New York did research on this though. It showed this might not be the case 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 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


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