Shelf space strategy in long-tail markets
AbstractThe Internet is known to have had a powerful impact on on-line retailer strategies in markets characterised by long-tail distribution of sales. Such retailers can exploit the long tail of the market, since they are effectively without physical limit on the number of choices on offer. Here we examine two extensions of this phenomenon. First, we introduce turnover into the long-tail distribution of sales. Although over any given period such as a week or a month, the distribution is right-skewed and often power law distributed, over time there is considerable turnover in the rankings of sales of individual products. Second, we establish some initial results on the implications for shelf-space strategy of physical retailers in such markets.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 0808.1655.
Date of creation: Aug 2008
Date of revision: Aug 2008
Publication status: Published in Physica A, 388 (2008) 691-696
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