The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting pretty with its Kindle platform. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the company introduces the $114 Amazon Kindle with Special Offers. What is the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be ad-supported. Article resource – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Kindle price cut with advertisements
The first generation Amazon kindle in 2007 cost $399. The price deduction never included 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 ad-supported version can be found in Best Buy and Target for the Kindle 3.
Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a “chicken in every pot” move:
“We’re working hard to make sure that anyone who wants a Kindle can afford one,” he said via a statement.
There were many responders to an article by the Christian Science Monitor that many may have about the kindle with advertisements. The price of books was brought up by one reader that states kindles for free with ads would be okay with $0.99 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 isn’t enough.
“It’s very important that we didn’t interfere with the reading experience,” Kindle director Jay Marine told the Associated Press.
Price matters
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. According to traditional marketing, 99 is magical number.
The Columbia Business School in New York did research on this though. It showed this is probably not the case anymore. The Columbia study showed the “dollar-minus” approach bringing it down to 99 cents was not almost 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.
Citations
Christian Science Monitor
csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle
Columbia Business School
gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main
Knowing and Making
knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html
TechCrunch
techcrunch.com/2011/04/11/amazon-kindle-99/
Kindle sales tripled after last price drop
youtu.be/PaAFm_fZQ2A
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