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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 system. Once the $114 Kindle with Special Offers ships May 3, Amazon should improve its 60 percent share in the e-reader market. Yet there's a catch - those Special Offers are advertisements, a move that has many worried about the shape of the reading experience to come.

Kindle price cut with advertisements



The first generation Amazon kindle in 2007 cost $399. In order to try and compete with the iPad in the e-reader market, the advertisements were put on it this time in the price deduction. There will be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The Kindle 3 will be put in stores then. Both Best Purchase and Target will carry it.

Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a "chicken in every pot" move:

"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 ads 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.


The price is needed



Getting to the $99 Kindle for Christmas 2011 is very important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests the ".99" price point is a magic number.

This isn't real anymore though according to research done at the New York Columbia Business School. 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. Sales of products that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands because the costs were perceived as being less manipulative.

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