Description: Amazon.com is slashing $25 off the price of a new Wi-Fi-only Kindle electronic reader. The catch: to get a Kindle for a new low price of a $114, you must purchase a version with sponsored screensaver ads and special offers. In all other respects, the new Kindle is identical to the Kindle now selling for $139. The only difference: Ads replace illustrations of classic authors like Virginia Woolf and Jules Verne that appear on current Kindle screensavers.
Questions for discussion:
- Who is the target customer for this approach?
- Do you think this strategy can work for Amazon?
- Do you think it will expand to other devices, like smarphones?