Tuesday, April 19, 2011

Ad-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 system. 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. However there’s a caveat for people, states the Christian Science Monitor. The latest Kindle offering will be ad-supported. Post resource – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

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. Target and Best Purchase will sell the ad-supported version of the Kindle 3 in stores at that time.

Founder and CEO of Amazon Jeff Bezos state it is a “chicken in every pot” move. Every person 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 claims kindles for free with advertisements would be okay with $0.99 books. Another reader concurs that a $25 discount isn’t enough to make up for the presence of ads, however one thing experts believe Amazon has done right is to isolate the ads to the Kindle’s screensaver and the bottom of the home screen.

“It’s very important that we didn’t interfere with the reading experience,” Kindle director Jay Marine told the Associated Press.

The price is needed

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. 99 is a magical number. Most marketing would suggest this.

However, new research from New York’s Columbia Business School indicates that 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. 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



No comments:

Post a Comment