Understanding the Longtail Effect

What is the primary idea behind the Longtail concept in internet economics?

• Increasing the price of popular items

• Reducing the number of available products

• Catering to a large number of niche products

• Focusing on a few high-demand products

Who introduced the Longtail concept?

• Jeff Bezos

• Elon Musk

• Chris Anderson

• Bill Gates

How does Amazon exemplify the Longtail effect?

• By focusing on physical stores

• By selling only popular products

• By offering a wide range of niche products

• By limiting the number of sellers

What role does Google AdSense play in the Longtail effect?

• It limits advertising to large companies

• It provides a platform for niche advertising

• It focuses on traditional media advertising

• It restricts ads to popular websites

What is one major implication of the Longtail effect on business models?

• Reducing product diversity

• Focusing solely on high-demand products

• Adapting to offer a wide range of niche products

• Eliminating online sales

How does the Longtail effect encourage innovation?

• By increasing barriers to entry

• By reducing the number of new products

• By lowering barriers for niche products

• By focusing on established companies

What is a limitation of the Longtail effect regarding niche products?

• Low individual profitability

• High individual profitability

• Unlimited shelf space

• High demand for each product

Why is reliance on digital platforms a limitation of the Longtail effect?

• They can change algorithms affecting reach

• They offer unlimited shelf space

• They guarantee high sales

• They reduce marketing costs

What challenge does managing a large number of niche products present?

• Simplified inventory management

• Reduced customer service needs

• Increased complexity and costs

• Decreased logistical difficulties

What does the Longtail effect necessitate in terms of business strategy?

• Eliminating online presence

• Focusing on a few mainstream products

• Encouraging diversification and innovation

• Reducing the number of niche products