Carrying your long tail: Delighting your consumers and managing your operations

Clemons, Eric K.; Nunes, Paul F.

doi:10.1016/j.dss.2011.02.007

Cited by 19 publications

(9 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…With the new technology of digital distribution, Coelho and Mendes (2019) find that the data of pop-rock music market supports the persistence of “superstar effect”, especially on live music. Clemons and Nunes (2011) recommend implementing resonance marketing strategies by matching products or services to each customer’s personalized preferences. In contrast to these papers, we focus on the effects of the long tail on the platform’s pricing strategies with a specific power-law distribution.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing on monopoly online trading platform with heterogeneous trading behavior and the long tail

Yang

Zhang

2019

View full text Add to dashboard Cite

Purpose This paper aims to study the pricing strategies of an online trading platform with indirect network externalities by considering heterogeneous trading behavior in the downstream market and the long tail. Design/methodology/approach The game theory, optimization and comparative static are used in this research. The equilibria are derived from the game theory, and with them, the authors optimize the platform’s profit function. Comparative static is used to study pricing strategies. Findings It is found that with heterogeneous trading behavior, the transaction-based model is more profitable than the subscription-based model by reason of the feasibility of “price discrimination”. However, with certain advantages of subscription fees such as avoiding offline transactions, the subscription-based model is better with a concentrated distribution of sellers’ revenues (the Gini coefficient is small). With a lucrative long tail, the platform should set a low price to attract small sellers in the long tail. Besides, if the Gini coefficient is large, the effects of the market entry barrier of sellers on the optimal price in each model may be opposite. Research limitations/implications It implies that the choice of revenue models and pricing strategies are influenced by the Gini coefficient or the long tail. The exogenous setting in which buyers can use the platform for free needs further extension. Practical implications The authors provide insights on how to choose revenue models and how to price the sellers with the long tail phenomenon. Originality/value This paper emphasizes the role of the long tail on pricing strategies and the effect of heterogeneous trading behavior on model selection.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Pricing on monopoly online trading platform with heterogeneous trading behavior and the long tail

Yang

Zhang

2019

View full text Add to dashboard Cite

show abstract

“…Para Kotler, Kartajaya e Setiawan (2017) a cocriação é a nova estratégia para o desenvolvimento de produtos, pois permite o envolvimento dos consumidores, melhorando as taxas de sucesso dos novos produtos. A cocriação torna-se uma opção estratégica atrativa, na medida em que permite que consumidores customizem e personalizem os produtos ou serviços, criando valor agregado para as partes envolvidas na transação, levando inclusive a uma predisposição maior a pagar preços premium e diminuindo o compromisso de descontos por parte do fornecedor (CLEMONS;NUNES, 2011;NORTON et al, 2012;XIA;SURI, 2014;PIRES et al, 2015).…”

Section: Gil E Campomar (2006)unclassified

O Narcisismo do Consumidor e as Estratégias de Marketing: uma Abordagem Teórica

Debona¹,

Reche²,

Bertolini³

2018

XVIII Mostra De Iniciação Científica, Pós-Graduação, Pesquisa E Extensão

View full text Add to dashboard Cite

“…First, it provides the potential to successfully charge premium prices and, second, it facilitates avoidance of compromise discounting, by providing customers the service they love instead of just the service they like. Finally, it enables pricebased competition, by the supplier being the first one to provide the customers with the products they love (Clemons & Nunes, 2011).…”

Section: Why Customers Are Allowed To Participate In the Value Proposition Creation Processmentioning

confidence: 99%

“…Hence, customers are better informed and more knowledgeable, more confident, and perhaps, more demanding about the competing services available to better satisfy their needs and wants, even if they have not previously consumed the particular service. These customers know what they want and have higher performance expectations, being unwilling to settle for less, such that they will only select the value proposition they perceive as superior (Clemons & Nunes, 2011). In order to obtain all their expected benefits such customers may be more willing to participate in core service co-production and value offer customisation.…”

Section: Why Customers Are Willing To Participate In the Value Proposition Creation Processmentioning

confidence: 99%

Using service logic to redefine exchange in terms of customer and supplier participation

Pires

Dean

Rehman

2015

Journal of Business Research

View full text Add to dashboard Cite

Service logic emphasises value co-creation, although mostly contending that the customer alone creates actual value. Value co-creation and co-production imply customer and supplier participation, but the literature mostly omits participation issues. This paper disentangles notions of production and co-production from the creation and co-creation of value propositions, and from the assumptions underlying value-in-use. The focus is on participation in exchange by customers and suppliers and their contributions at various stages of the value creation process.The paper uses service logic to develop a process model of customer and supplier participation in exchange with three phases (production, negotiation and usage), explores why suppliers allow customer participation in value proposition creation, and the motivations compelling customers to participate. Understanding how supplier and customer participation impact on value proposition creation and on value-in-use, provides an impetus for improved targeting practices, enhanced supplier ability to compete, and more focused research.

show abstract

Carrying your long tail: Delighting your consumers and managing your operations

Cited by 19 publications

References 16 publications

Pricing on monopoly online trading platform with heterogeneous trading behavior and the long tail

Pricing on monopoly online trading platform with heterogeneous trading behavior and the long tail

O Narcisismo do Consumidor e as Estratégias de Marketing: uma Abordagem Teórica

Using service logic to redefine exchange in terms of customer and supplier participation

Contact Info

Product

Resources

About