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  • Essay / Amazon Kindle Price Point - 2038

    Business Problem PaperThe Amazon Kindle has been a wireless reading device, "convenient and portable, with the ability to download books, blogs, magazines and newspapers" for almost anywhere in the United States (Amazon, 2008). Michael Lewis, author of Moneyball and Liar's Poker, predicts: "This (Amazon Kindle) is the future of reading books." It will be everywhere. (Amazon, 2008). This report will determine if the current price of $399.00 is reasonable to support and sustain the sale of the Kindle. It will clearly define the dependent and independent variables of the study, indicate the null and alternative hypotheses, and the methodology used to test the hypotheses. It will calculate the required sample size, which will provide clear support for the criteria used. The samples selected and produced are described, including the methodology used to collect the data and a description of the survey instruments. One final recommendation is offered as to whether the Kindle is a good buy at $399 or whether Amazon should change the price or product. What is the Amazon Kindle? The Kindle is Amazon's version of an e-book reader. It has been in the works for three years and was first offered to the public in November 2007. It uses eInk, a display that provides glare-free, backlit-free viewing that mimics the feel of a traditional paper publication. Using Whispernet technology and the Sprint network, the Kindle uses wireless access at no cost to the consumer. It offers over 120,000 eBooks ranging from $0.25 to $2,386.80, with the average eBook costing $9.99. There are 10 national newspapers available for a monthly rate of $5.99 to $13.99 (for the New York Times), as well as 333 blogs and 15 magazines. See Table 2 for a list of details. The Kindle has a QWERTY keyboard on top and fits like a folded book. Other great features include long battery life, adjustable reading fonts, the ability to hold over 200 titles at a time, and the weight of the device is only 10.3 ounces (Amazon, 2008 ). …” manipulations and predictors (Cooper, 2003). The focus group for this study was interested in the relationships between independent and dependent variables. The main independent variable in this study was the age of the consumer. Age appears to indicate other independent variables, such as income levels, available disposable income, and current level of interest..