Amazon Kindle To Ship With Ads On May 3
Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle gadget. Industry studies indicate the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the business 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, can be advertisement-supported. Source for this article – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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 could be Special Offers in the May 3 edition of the Kindle. It is a product many will want. The advertisement-supported version could be found in Best Buy and Target for the Kindle 3. Founder and CEO of Amazon Jeff Bezos state 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. 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 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.
Price matters
Getting to the $99 Kindle for Christmas 2011 is essential, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. Traditional marketing psychology suggests that the “.99″ price point is a magic number. 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. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not seem as manipulative to customers.
Information from
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/
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