Book Pricing & Royalty Strategies Flashcards
7 cards from real Book & eBook Marketing practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Book Pricing & Royalty Strategies flashcards as text
What does the acronym KENP stand for in Amazon Kindle Unlimited royalty calculations?
Answer: Kindle Edition Normalized Pages
KENP stands for Kindle Edition Normalized Pages, which is the standardized unit Amazon uses to calculate author royalties based on pages actually read in Kindle Unlimited.
Which book pricing strategy involves packaging multiple books together and selling them at a combined discounted price?
Answer: Bundle pricing
Bundle pricing groups multiple books (often an entire series) into a single product offered at a lower total price than buying each book individually.
What is the core purpose of a 'loss leader' pricing strategy for authors?
Answer: Pricing one book very cheaply or free to attract readers who will then buy other books at full price
A loss leader prices one book below profitability (or at zero) to acquire new readers, who then become paying customers for other books in the author's catalog.
In book marketing, what does 'price elasticity of demand' measure?
Answer: How much reader demand changes in response to a price increase or decrease
Price elasticity measures how sensitive consumer demand is to price changes — a highly elastic book sees large sales swings with small price moves.
Which major retailer enforces 'price parity' terms, requiring authors not to price their eBook lower on any competing platform?
Answer: Amazon
Amazon's terms of service include price-matching provisions that require authors to keep Amazon prices at or below the price on any other retailer.
Which price range is generally recommended for nonfiction eBooks to balance reader accessibility with the perceived value of practical content?
Answer: $7.99–$14.99
Nonfiction eBooks typically command higher prices than fiction because readers perceive instructional content as higher value; $7.99–$14.99 reflects that value while remaining accessible.
What is the primary marketing goal of a KDP Select Free Book Promotion, despite earning no royalties during the free period?
Answer: Boosting visibility, rank, and reviews to drive paid sales once the promotion ends
Free Book Promotions drive download volume that improves Amazon sales rank and can generate reviews, creating momentum that translates into paid sales after the promotion ends.
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