2010
DOI: 10.1007/s10257-010-0153-1
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Valuation of online social networks taking into account users’ interconnectedness

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Cited by 31 publications
(12 citation statements)
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“…However, this standard approach may not be valid for networks, particularly if the network does not yet have any profits or if the profit growth rate exceeds the interest rate. Another approach suitable for subscription-based businesses is to calculate the customer lifetime value for each network member from his or her own discounted cash flows (Gneiser et al 2012). This alternative is based on customer equity theory (Rust, Lemon, and Zeithaml 2004) but may not be particularly robust in a world in which people can easily cancel or change subscriptions.…”
Section: Measuring Brand Valuementioning
confidence: 99%
“…However, this standard approach may not be valid for networks, particularly if the network does not yet have any profits or if the profit growth rate exceeds the interest rate. Another approach suitable for subscription-based businesses is to calculate the customer lifetime value for each network member from his or her own discounted cash flows (Gneiser et al 2012). This alternative is based on customer equity theory (Rust, Lemon, and Zeithaml 2004) but may not be particularly robust in a world in which people can easily cancel or change subscriptions.…”
Section: Measuring Brand Valuementioning
confidence: 99%
“…The Internet as well as Web 2.0 and 3.0 technologies do nothing but amplify social networks. According to Gneiser et al (2012), OSNs allow individuals: (a) to build a public or semi-public profile within a well-defined system, (a) to articulate a list of users with whom they have a connection and, finally, (c) to see and cross their connections list with others made by different individuals belonging to the same system.…”
Section: Insert Tablementioning
confidence: 99%
“…Next, an enterprise can adjust its market competition policies to obtain strategic advantage. Gneiser, Heidemann, Klier, Landherr, Probst (2012) propose an economic model for the valuation of online social networks. The result of their model was in the range of the market capitalization at the instant of XING's valuation.…”
Section: Related Workmentioning
confidence: 99%