2. The long tail theory was found by Chris
Anderson.
In "long-tailed" distributions a high-frequency
or high-amplitude population is followed by a
low-frequency or low-amplitude population
which gradually "tails off"
Introduction
3. a power law is a functional relationship
between two quantities, where one quantity
varies as a power of another. Wikipedia
For example: Many brands of soft drinks but
only some including coke, pepsi or 7up actually
contribute.
The power law
4. The long tail theory aims to tell us about the
distributions of sales and goods.
The retailer can sell the large or main product
such as coke or he could supply niches of the
product to compensate for the actual price.
The long-tail theory
5. The tail becomes
bigger and longer in
new markets
(depicted in red). In
other words, whereas
traditional retailers
have focused on the
area to the left of the
chart, online
bookstores derive
more sales from the
area to the right.
Wikipedia
6. The long-tail theory grew when online retailers
saw how easy and efficient it was to store
products in warehouses rather than stores, thus
they had more space for the storing of other
products.
Long-tail growth.
7. The long-tail theory allows blockbusters to
store more titles for example movie sites like
netflix or moviorama store more movie titles
that allow more sale of the titles which in turn
give more income.
Long-tail in example
8. The 80-20 rule is used in business to help
managers identify problems and determine
which operating factors should be given more
attention.
The 80-20 rule
9. The use of the long-tail theory and e-commerce
has increased during the past few years. The
more use of this means that the audience has
started to become more aware of what they are
up against.
The long-tail theory