The Long Tail
Q1. What limitations do “brick and mortar” stores have that Anderson tells us online stores do not have?
There are a number of limitations that the “brick and mortar” stores have but online stores don’t have. One, through online stores, unlike in the “brick and mortar” stores, the trend of the customers can be noted. Second, through online stores, one can get the feedback which is the reviews of the readers. Third, there are algorithm-fueled recommendations (Anderson, 2009). Four, there is unlimited selection (alternatives) and what the customers want and in the manner that they want it delivered. Last, as Pareto cites an example of Netflix, more items are hired threefold online compared to the brick-and-mortar stores.
Q2. Anderson tells us that the 80/20 Rule does not apply to the ability of online products to make money. Does he think the 80/20 Rule is incorrect? Explain, including what the 80/20 rule is.
Anderson doesn’t think that the 80/20 Rule is incorrect. Were he to say that it’s incorrect, that it would imply that it he means it doesn’t apply: but it does. However, the 80/20 Rule isn’t applicable to online stores. 80/20 Rule was coined by Vilfredo Pareto and it means that the 20% of the reasons of a particular occasion can determine 80% of the results.
Q3. Does Anderson think that “the Long Tail” will eliminate “mega-hits?” Why or why not?
Anderson doesn’t mean that the “Long Tail” will eliminate the “mega-hits”. However, what he does says in my opinion, is that the “Long Tail” will squeeze in the “other marginalized hits”: the latter meaning songs which as Pareto puts it,” songs that no traditional jukebox anywhere has ever carried.” Depending on what “elimination” is taken to mean, and in this case meaning edging out of the market, these so called “mega-hits” won’t be eliminated. According to Pareto, it is crystal clear: popularity doesn’t determine the returns it will bring. To cap it all, the author soberly pipes it that people make assumptions that the 80% that doesn’t secure a space in the Wal-Mart and the other major retailers is underprivileged, i.e., “must be sub-commercial.”
Q4. Anderson recommends cutting prices to make more money. Why does he think this would increase profits?
Anderson thinks that if the prices are cut, people will buy more and tend to compete with free thus delivering more profits. Business can use customization to increase their “Long Tail” revenue by competent marketing, and letting fewer films and music to stream to the audience. Also it can be by endorsing searching and rekindling the music fervor through upgrading “signal-to-noise ratio.”
Anderson. C. (2009) The Long Tail. Retrived on 23rd September 2011 from http://www.wired.com/wired/archive/12.10/tail_pr.html