Advertisement Supported Kindle To Ship At $114
Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle gadget. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. What’s the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be advertisement-supported. Source of article – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
It is worth a discount for an ad based kindle?
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. This is the first time, however, that a price reduction will include the placement of ads 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 several will want. The Kindle 3 can be put in stores then. Both Best Purchase and Target will carry it. Founder and CEO of Amazon Jeff Bezos state it is a “chicken in every pot” move. Everybody 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.
There were several responders to an article by the Christian Science Monitor that many may have about the kindle with ads. 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 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.
Importance of a price
The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number. This is not 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.
Christian Science Monitor
Columbia Business School
Knowing and Making