The six online consuming segments are peer-to-peer,
freemium, long tail, cross-subsides, zero marginal cost, and gift economy. The
Long Tail Theory was very interesting to me. Websites like Amazon.com fall
under this theory. It is where you have large amounts of more obscure items.
This theory is about items that are sold, but they are not all popular items.
These items are cheaper, widely available, newer items, and handmade goods.
There is a high number of goods and a low cost of reaching markets. It is a way
to tailor to personal taste. An example of the Long Tail Theory would be my
cupcake website I created. It is a way for me to sell handmade goods to a wide
variety of people. It makes what I am selling widely available. Some of the
effects of the Long Tail Theory are democratization of the means of production,
democratization of the means of distribution, and greatly reduced cost of
connecting suppliers and consumers. The different online consuming behaviors
are simplifiers, surfers, connecters, bargainers, routiners, and sportsters. I
would consider my own online consuming behavior as a simplifier. I like convenience
when I go online or when I do anything. Websites that are quick and easy, like
Amazon.com, are the ones I use. I do not like pop-up windows or unsolicited
emails either. I think the simplifier
online consuming behavior relates to the cross-subsidies consuming segment.
Cross-subsidies are any product that entices you to pay for something else. One
way or another, everyone is willing to pay eventually. Since I am a simplifier,
this happens to me when I upgrade my cell phone. They phone company makes it
seem really simple and easy. It also
appears to be cheaper at the time, but I always end up paying more money
somehow.
I think you make an interesting point about the cell phone industry practicing cross-subsidies. There are a plethora of phone companies to choose from, however, it can be difficult to decide which plan is most economical. I think that a lot of times being a simplifier can cause apathy in terms of buying products. As a person who like the conveniency of products, it may make it easier to fall for products that are not necessarily the most affordable.
ReplyDeleteI like how you use the same example to show two different things going on. Amazon.com is a perfect example of the long tail theory and it is super convenient for simplifier consumers. Amazon is a perfect website for simplifier consumers because of the "one click check out" function they offer. You do a good job connecting so many different things that we've learned this year through one online source.
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