Response to Britney Perkins

"Do you think that that is a more ethical way of collecting the ZIP codes?  Would you volunteer that information if you were asked?"


Britney discussed, in her most recent blog, how companies have begun to use zip codes to find addresses and other forms of identification to use to their benefit. I agree with her, that I don't think zip codes are as big of a deal to give, as opposed to Social Security Numbers or actual addresses. I used to work at Abercrombie a few years ago and we were told to ask if the customer would like to give their zipcode. The reason for collecting these was to see where the most customers come from. This information is sent to Corporate headquarters and used to see where the new stores should be built. From the article that Britney read, it seems as if they are taking this too far. I give my zipcode at gas pumps when I use my card but other than that I usually say no thank you when I am at a retail store. Do you think some places shouldn't be allowed to ask for your zipcode?

Kindle price, slowly declining

Amazon just announced that it is going to decrease the price of the Kindle Reader $25. It now will sell for only $114. The catch to this deal is that with the decline in price, will come advertisements attached to the bottom. I think this idea is going to make sales boost a lot for the Kindle Reader. As the price keeps going down, consumers will be better opt to make the purchase which will then lead to them buying the books. This is an example of captive pricing, the basic product in a product line is priced low so more people will be opt to buy it as opposed to a competitive product. I think the books is where they get the most sales anyways. Also, by adding the advertisements to the bottom, it will hopefully generate more sales for Amazon as well. An article I found on cnbc.com states:


"There's been some rumors that they may even offer it for free even with Prime members," Kessler said. "I think we're heading for sub-$100 price points for e-readers."


If it does eventually reach below $100, or become free, do you think this will generate more profit or do you think the Kindle Reader will be on the decline?