Book & eBook Marketing Book Pricing & Royalty Strategies 2

Question 1

Which psychological pricing principle explains why $9.99 consistently outsells the same product priced at $10.00?

Accepted Answer

Charm pricing (odd-even pricing)

Answer

Charm pricing uses prices ending in .99 or .95 because consumers perceive them as significantly lower than the next round number, even when the difference is minimal.

Question 2

What is the primary benefit of enrolling a book in Amazon KDP Select?

Accepted Answer

Access to Kindle Unlimited readers and exclusive promotional tools

Answer

KDP Select enrollment provides access to the Kindle Unlimited subscription royalty pool and exclusive tools like Free Book Promotions and Countdown Deals.

Question 3

What royalty rate does Amazon KDP pay for eBooks priced below $2.99 or above $9.99?

Accepted Answer

35%

Answer

Amazon KDP pays a 35% royalty rate for eBooks priced outside the $2.99–$9.99 sweet spot, which is why most authors target that middle range.

Question 4

What is 'price anchoring' as used in book promotions like Amazon Countdown Deals?

Accepted Answer

Displaying a high original price alongside a discounted price to make the sale seem more valuable

Answer

Price anchoring presents the higher 'before' price alongside the discounted price, making the savings feel substantial and encouraging purchases.

Question 5

Which price range is most commonly recommended for fiction eBooks to balance sales volume with the highest royalty tier?

Accepted Answer

$2.99–$4.99

Answer

The $2.99–$4.99 range qualifies for Amazon's 70% royalty tier while remaining an impulse-buy price point attractive to most genre fiction readers.

Book & eBook Marketing Practice Test

Book & eBook Marketing Practice Test

Book & eBook Marketing Book Pricing & Royalty Strategies 2