History[ edit ] A frequency distribution with a long tail[ which? The total sales of this large number of "non-hit items" is called "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. The Long Tail is not without its challenges, including increased global competition, and it has not abandoned geographic considerations. Geography, in fact, can help to differentiate niche products and must still be overcome to consummate the tourist kaja-net.comns of this article were originally published in: Lew, A. A. (). Sep 28, · The Long Tail concept refers to the Internet-based economy that has enabled company success through a focus on highly .
Quote Using data on movie-rating patterns, new Wharton research challenges current thinking on the Long Tail effect — a widely publicized theory that suggests the Internet drives demand Long tail theory niche tourism from hit products with mass appeal, and directs that demand to more obscure niche offerings.
Tan pull information from the movie rental company Netflix to explore consumer demand for smash hits and lesser-known films. The Wharton researchers find that the Long Tail effect holds true in some cases, but when factoring in expanding product variety and consumer demand, mass appeal products retain their importance.
The researchers argue that new movies appear so fast that consumers do not have time to discover them, and that niche movies are not any more well-liked than hits. According to Netessine, the Long Tail effect may be present in some cases, but few companies operate in a pure digital distribution system.
Instead, they must weigh supply chain costs of physical products against the potential gain of capturing single customers of obscure offerings in a rapidly expanding marketplace. Companies, they add, must also consider the time it takes for consumers to locate off-beat items they may want. Anderson is also author of The Long Tail: In an e-mail, Anderson says the Wharton paper and other academic evaluations that are critical of the Long Tail theory are not relevant because they take a percentage approach to evaluating the power of the head and tail of demand.
Anderson argues that defining the head and tail of demand in percentage terms is meaningless in a market with unlimited inventory, such as a retailer with digital distribution. In this case, Anderson would argue that sizable demand has shifted down the tail toward more people selecting fewer products.
But since real people experience the world in absolute numbers, not percentages, this is a statistical illusion, he states. The truth is that people are choosing a wider array of titles.
However, product variety has been skyrocketing in the Internet age, and therefore more and more products can be left unnoticed by consumers, or are being discovered very slowly, even though the customer base is also expanding. If this product variety is taken into account so that product popularity is calculated relative to the total product variety, Wharton researchers do not find any evidence of the Long Tail effect.
The authors also performed an analysis taking an absolute approach to the Netflix data, like Anderson, and found that the Long Tail effect is only partially present: Demand for niches decreases over time — rather than increases — although demand for hit products also declines.
Anderson argues that as demand shifts down the tail, the effect would diminish. Anderson did his own analysis using the Wharton data and found lower demand for the top products and more interest in the middle part of the curve.
While the Long Tail theory focuses on the revenue potential of selling many individual products, Netessine says it is important to acknowledge that cultivating this revenue comes at a cost — including expenses associated with operating its distribution centers and stocking thousands of DVDs.
When applying the Long Tail theory to companies, Netessine says, a relative analysis is more meaningful because it takes into account the costs involved in maintaining a supply chain to feed demand for many obscure choices.
He points to Amazon as another example of an Internet distribution company that still has substantial costs involving warehousing and shipping.
A business model based on the Long Tail effect might work for a company based on pure digital distribution, such as the music website Rhapsody, according to Netessine. The Wharton paper also explores how consumers branch out from hits to discover more obscure products.
But in order for a film to be recommended, it must be viewed in the first place. Current tools may not be good enough. The company is now in the process of determining the winner. The researchers also investigated the Long Tail theory premise that consumers will gravitate to more obscure products because they will find them more satisfying than mass-market hits.
Moreover, it is mostly heavy movie watchers who venture into niche movies. Since only a small fraction of consumers constitute heavy movie watchers, it is not surprising that there is weak evidence of the Long Tail effect, Netessine concludes.
The paper argues that the research findings have important implications because the Long Tail theory has gained momentum in the business world.
According to Netessine, the research is likely to generate controversy because of its findings that contradict the popular Long Tail theory.KEYWORDS. The Long Tail, social software, marketing, geography, the Internet The Long Tail theory refers to the occur in a relatively rare frequency, includ- behavior of economic sectors that provide ing items that are low in individual popular- products in relatively low volume, but are ity or in sales.
LONG TAIL TOURISM: NEW GEOGRAPHIES FOR MARKETING NICHE TOURISM PRODUCTS Alan A. Lew ABSTRACT. The Long Tail concept refers to the Internet-based economy that has enabled company success through a focus on highly specialized services and products that are not in high volume demand, but maybe in high-value .
The Long Tail is not without its challenges, including increased global competition, and it has not abandoned geographic considerations.
Geography, in fact, can help to differentiate niche products and must still be overcome to consummate the tourist experience. Sep 28, · The Long Tail concept refers to the Internet-based economy that has enabled company success through a focus on highly . In business, the term long tail is applied to rank-size distributions or rank-frequency distributions (primarily of popularity), which often form power laws and are thus long-tailed distributions in the statistical sense.
This is used to describe the retailing strategy of selling a large number of unique items with relatively small quantities sold of each (the "long tail")—usually in addition to selling fewer popular items in large .
Transcript of Niche Tourism Marketing: The Long Tail. Mass Tourism: Niche Tourism Marketing Commodities Goods Services Experiences Extraction Make Customization Customization need to be "authentic" Why?