What is long tail in ecommerce?
The long tail of e-commerce is a model in which more of niche products are sold rather than advertising and marketing a single or two or three products which can go on to become bestsellers that are the sole source of revenue for the company.
What is the long tail theory?
The Long Tail theory suggests that, as the Internet makes distribution easier — and uses state-of-the-art recommendation systems that allows consumers to become aware of more obscure products — demand will shift from the most popular products at the “head” of a demand curve — as charted on an xy axis — to the aggregate …
What is a long tail examples?
Classic examples of Long Tail businesses include Amazon and Netflix. In addition to online retailers you will also find Long Tail businesses in micro finance and insurance to name just two industries. The Long Tail refers to a statistical distribution that occurs for particular data sets.
Why is long tail of marketing important?
The long tail marketing model allows a business to expand its customer diversity. By definition, no long tail is made up of only a single consumer segment, but will rather represent a great number of different consumer segments—and the longer the tail, the greater diversity of customers (See also Diversity Marketing).
What is long tail marketing example?
Long tail marketing refers to the strategy of targeting a large number of niche markets with a product or service. For example – most of us have shopped on Amazon, and you will have been recommended products. That’s long tail marketing.
What best describes the long tail effect in e commerce?
Which of the following best describes long tail marketing? Long tail marketing refers to the ability of firms to profitably market goods to very small online audiences, largely because of the lower costs of reaching very small market segments (people who fall into the long tail ends of a Bell curve).
How does long tail change retail economics?
Second-Order Effects of the Long Tail For producers, the Long Tail will change the kinds of products that are profitable. In a world where only products with mass-market appeal make it to store shelves, producers have strong incentives to focus on mass- market tastes, to the exclusion of niche audiences.
How does the long tail change retail economics?
How does the long tail change retail economics? The Long tail is an event where firms can make money by offering a near-limitless selection. Customers are more likely to look for products at firms that offer a greater selection rather than at a store that offers the most common items.
What is long tail outsourcing strategy?
Representing a dynamic, diversified, and yet disciplined approach toward outsourcing, the long-tail strategy embraces and even fosters a flow of new suppliers offering new capabilities that can enable the company to prosper in turbulent business environments. …
What does a long tail mean in statistics?
In statistics and business, a long tail of some distributions of numbers is the portion of the distribution having many occurrences far from the “head” or central part of the distribution. The distribution could involve popularities, random numbers of occurrences of events with various probabilities, etc.
Which company took advantage of the long tail?
Amazon
Anderson cites Amazon as a trailblazing company that has taken advantage of a long-tail strategy. Competitors, meanwhile, have noticed Amazon’s apparent success in generating profit from its endless aisles of products and this has spurred many of them to adopt similar long-tail strategies.
What is long tail content?
Long-tail encompasses all content that generates traffic more than three days after publishing. Everlasting content increases brand authority, continually drives relevant traffic to your domain and holds a valuable position in search engine rankings for months – or even years – from when it was first published.
What is the long tail in marketing?
What is the Long Tail. The long tail is a strategy that allows businesses to realize significant profit out of selling low volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The term was coined in 2004 by Chris Anderson, who argued that products in low demand or…
Are e-tailers catering to the long tail consumer?
In catering to the Long Tail consumer, e-tailers have several advantages over traditional retailers, such as infinite shelf space and the ability to change or add to inventory more easily. This allows e-tailers to offer an unlimited selection of high-margin items at a fraction of the cost required of a brick-and-mortar retailer.
Why are long-tail products so profitable?
Long-tail products also have lower distribution and marketing costs for the most part, increasing profitability even further.
Can social science help e-tailers profit from the long tail?
This allows e-tailers to offer an unlimited selection of high-margin items at a fraction of the cost required of a brick-and-mortar retailer. Moreover, it’s now possible for online retailers to profit from the elusive Long Tail by applying social science to their e-commerce technology for the very first time.