Putting ads on a kindle; pay less
The first generation Amazon kindle in 2007 cost $399. The price deduction never included ads before this. Doing this, the e-reader market could be breached making the iPad competition. May 3 is when the kindle will start with Special Offers. The advertisement-supported version could be found in Best Purchase and Target for the Kindle 3.
Founder and CEO of Amazon Jeff Bezos say 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. 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 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
TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. 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 is probably not the case anymore. The "dollar-minus" approach (down to 99 cents, for instance) was actually less effective than "dollar-plus" price points (like $4.01), according to the Columbia study. Dollar plus brands seemed less manipulative to consumers which is why the dollar plus method sold 3 percent more.
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.
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