Amazon to release advertisement-supported Kindle for $114

Amazon is in a position to ride the wave of revolution in the print industry, thanks to its Kindle device. 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. Yet there’s a catch – those Special Offers are advertisements, a move that has several worried about the shape of the reading experience to come.

Is an ad-based Kindle worth $25 off standard price?

The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. The price deduction never incorporated advertisements before this. Doing this, the e-reader market could be breached making the iPad competition. The Kindle with Special Offers is slated to ship May 3. The advertisement-supported version could be found in Best Buy and Target for the Kindle 3.

Founder and CEO of Amazon Jeff Bezos claim 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. 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. 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 is not enough.

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

Why everyone worries about a price

TechCrunch predicts that the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. Traditional marketing psychology suggests 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. The Columbia study showed the “dollar-minus” approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a “dollar-plus” approach. There was a 3 percent increase in sales of dollar plus method products. This is because they did not seem as manipulative to consumers.

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/

Kindle sales tripled after last price drop

youtu.be/PaAFm_fZQ2A