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.
Christian Science Monitor
Columbia Business School
Knowing and Making
Kindle sales tripled after last price drop
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