Is an advertisement-based Kindle worth $25 off standard price?
About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. The price deduction never incorporated ads before this. Doing this, the e-reader market could be breached making the iPad competition. There will be Special Offers in the May 3 edition of the Kindle. It is a product several will want. The Kindle 3 can be put in stores then. Both Best Buy and Target will carry it.
It is "chicken in every pot" decision made with the $114 kindle with Special Offers according to Jeff Bezos, the Amazon CEO and founder:
"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.
Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most consumers have about an advertisement-based Kindle. The price of books was brought up by one reader that states kindles for free with advertisements would be okay with $0.99 books. Several experts say it is good that Amazon only has advertisements 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.
Why everyone worries about a price
The guess TechCrunch has is 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 may not be the case anymore. The Columbia study showed the "dollar-minus" approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a "dollar-plus" approach. Sales of products that used the dollar-plus method increased by 3 percent, and consumers felt greater trust for dollar-plus brands as the costs 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.
Article Source: JS2 Article Spinner