Chapter 13, Problem 13.28C

Summary Introduction

Case summary:

In 2005, the editor of W Magazine, Person CA, wrote a book on the long tail. He suggested that the rise of e-commerce has relaxed the ways for the customer to search for a product. The internet has allowed the customer to look for a product they require. The long tail signifies the ending portion of the demand curve which is with the restricted shelf space and with increased use of distribution channels, goods can be economically attractive and available.

Person CA argues that the store only stocks expensive items but online retailers like company A can stock virtually which allows them to the sell various products. Instead of stocking special items by itself, company A offers a marketspace for its long-tail items.

Long-tails has offered the customer to access any kind of product which was once not available in the market. The Internet has allowed users to search for any kind of products and the suppliers to choose their segment of the market.

To provide: Reasons whether the long tail theory is still applicable or not.