The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. 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. But there’s a caveat for people, states the Christian Science Monitor. The latest Kindle offering could be advertisement-supported. Source of article – Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Kindle price cut with advertisements
The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. To be able to try and compete with the iPad in the e-reader market, the advertisements were put on it this time in the price deduction. May 3 is when the kindle will start with Special Offers. The Kindle 3 will be put in stores then. Both Best Buy and Target will carry it.
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.
Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most customers have about an advertisement-based Kindle. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. Another reader concurs that a $25 discount is not 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
The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number.
This isn’t real anymore though according to research done at the New York Columbia Business School. The “dollar-minus” approach (down to 99 cents, for instance) was really less effective than “dollar-plus” price points (like $4.01), according to the Columbia study. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands because the prices were perceived as being less manipulative.
Articles cited
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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