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.

What does long tail mean in marketing?

The long tail is a business strategy that allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. This definition deals with the business strategy use of the term.

Why is long tail important?

It will help you rank for short-tail keywords too More often than not, long-tail keywords already include the short keywords you likely want to rank for. This makes it easier to hit both of your goals, boosting your ranking for those main keywords as well as your specific, targeted ones.

What companies use long tail business model?

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.

What is the long tail What implications does this have for market segmentation?

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 are long tail benefits in content marketing?

Long tail marketing is the strategy of selling large amounts of popular products in addition to low amounts of niche products or services in niche markets. The theory is that the combined profit from low demand product sales will be similar to that of the popular products.

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 is long tail marketing examples?

For example – most of us have shopped on Amazon, and you will have been recommended products. That’s long tail marketing. You may have been recommended products that are a little tenuous and have no real relation to anything you’ve bought, but, nevertheless it’s an example of Amazon attacking multiple niches.

Where are long tailed distributions used?

Another kind of heavy-tailed distribution is the long-tailed distribution, which is used to model many internet-era phenomena such as the frequency distribution of book titles sold at Amazon.com or the frequency of internet search terms.

What does 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.

What is a long tail effect?

The Long Tail Effect theory in practice explained. The long tail is a statistical pattern of distribution that occurs when a larger share of occurrences occur farther away from the centre or head of distribution. Instead, more and more people are buying individualised niche products (located in the long tail).