Title :
Long Tail in electronic markets: Research on competition between niche products and featured products
Author :
Yang, Yuhui ; Zhu, Yan
Author_Institution :
Sch. of Econ. & Manage., Tsinghua Univ., Beijing, China
Abstract :
The emergence of Long Tail in electronic markets illuminates that niche and obscure products which previously sold very little can make up a significant share of total sales. We build a circle city model with horizontal product differentiation to describe the electronic market involving niche products and a featured product. With the model, we analyze the competition between niche products and a featured product. The analytical results demonstrate that it can enhance the consumers´ utilities by adopting niche products into the electronic market, and the search cost has an important impact on niche product sales.
Keywords :
consumer behaviour; costing; electronic commerce; sales management; circle city model; consumer search behavior; consumer utility; electronic market; horizontal product differentiation; long tail theory; niche product; obscure product; product sales; search cost; total sales; Cities and towns; Consumer electronics; Costs; Disaster management; Information analysis; Internet; Marketing and sales; Probability distribution; Electronic market; Niche product; Product differentiation; Search cost; The Long Tail theory;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2010 7th International Conference on
Conference_Location :
Tokyo
Print_ISBN :
978-1-4244-6485-2
DOI :
10.1109/ICSSSM.2010.5530193
