Paying $25 less for an ad-based kindle
The first generation Amazon kindle in 2007 cost $399. This is the first time, however, that a price reduction will consist of the placement of advertisements on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. There will be Special Offers in the May 3 edition of the Kindle. It is a product many will want. Target and Best Purchase will sell the ad-supported version of the Kindle 3 in stores at that time.
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 customers have about an ad-based Kindle. One reader argues for a free ad-based Kindle with $0.99 books, however that reflects another thorny issue regarding the price of electronic books. 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.
Why everyone worries about a price
Getting to the $99 Kindle for Christmas 2011 is important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. 99 is a magical number. Most marketing would suggest this.
However, new research from New York's Columbia Business School indicates the advantage is more imagined than it is real 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. 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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