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Is everything that is not at WalMart in the CD rack is already a niche product? Scientists argue about the limits of the mass market.

Big Picture

If everything is not there at WalMart, a niche product? (Photo: AFP)

Seductive sounded the promise of an age in which not just the lowest common denominator of the strategies of the cultural industries should be characterized. The theory of the "Long Tail" Chris Anderson, editor in chief of the U.S. magazine Wired, set up four years ago, was in a short time, to a principle of faith especially the creative part of the network economy
Mass-produced products sell better online

Anderson said the de facto control of the business's basic principle of the economist Vilfredo Pareto obsolete for that 80 percent of sales with only 20 percent of the products are made.

On the graph of the first steep, then flach expiring "Pareto curve" assume, as Anderson, the first section, the "Big Head" in importance, while the narrow end, the "Long Tail" is infinitely lengthen and an increasingly large proportion do.

The hypothesis is strongly plucked

"Niche products rather than mass market" was the catchy title of the abstract in the German translation of Anderson's book.
Through the Internet (such as the recommendations of the online bookseller Amazon: "Customers who bought this product have also bought ...") would also supposed shop keepers new prospective.

Because the digital economy also independent of the limitations of physical storage capacity that will be just as profitable, many CDs or books are only a few copies for sale.

But now, the long-tail theory, which praise seLBST-founder of Google Eric Schmidt harvested, violently plucked. The Harvard economist Anita Elberse the Wired-husband in his research helped in the Harvard Business Review published an article (harvardbusinessonline.hbsp.harvard.edu), it appears under the title "The Tale of Long Tail" in Harvard Business Manager German.

Consumers buy as always

Elberse analyzes industry data: Thus, the importance of hits and blockbusters in the online economy is not, but shall, in comparison to the traditional economy to be strong even. The tail will be arriving on the other hand, longer, but always flat: 91 percent of digital music tracks in 2007 in the U.S. were sold were less than a hundred times, and at least 24 percent only once have been removed. "What consumers buy via the Internet," said Elbers, "corresponds to the largesttenteils with what they've always bought.
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"Put the old thinking still not completely gone," wrote the Wall Street Journal columnist Lee approving the Gomes and spöttelte on the manager in Silicon Valley, which in recent years, the long-tail theory foundation of any business plan would have done (online. wsj.com).

In a reply to Chris Anderson Elberse acknowledges that their findings were surprising, not least for me, "But in the question, what is more to the Big Head, and what already belongs to the Long Tail, is it completely apart. For him, everything was beyond the 10,000 song titles on the CDs, a WalMart store reserved already a niche product. That gave Elberse back, but then had a fairly arbitrary demarcation.
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Added on 2009-06-21 12:46:09 . ID: 12