Book & eBook Marketing Book Pricing & Royalty Strategies 3

Question 1

What does the acronym KENP stand for in Amazon Kindle Unlimited royalty calculations?

Accepted Answer

Kindle Edition Normalized Pages

Answer

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.

Question 2

Which book pricing strategy involves packaging multiple books together and selling them at a combined discounted price?

Accepted Answer

Bundle pricing

Answer

Bundle pricing groups multiple books (often an entire series) into a single product offered at a lower total price than buying each book individually.

Question 3

What is the core purpose of a 'loss leader' pricing strategy for authors?

Accepted Answer

Pricing one book very cheaply or free to attract readers who will then buy other books at full price

Answer

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.

Question 4

In book marketing, what does 'price elasticity of demand' measure?

Accepted Answer

How much reader demand changes in response to a price increase or decrease

Answer

Price elasticity measures how sensitive consumer demand is to price changes — a highly elastic book sees large sales swings with small price moves.

Question 5

Which major retailer enforces 'price parity' terms, requiring authors not to price their eBook lower on any competing platform?

Accepted Answer

Amazon

Answer

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.

Book & eBook Marketing Practice Test

Book & eBook Marketing Practice Test

Book & eBook Marketing Book Pricing & Royalty Strategies 3