That’s a pretty well-established and well-known theory proposed by Chris Anderson, who was editor-in-chief of Wired magazine. Professor of Operations, Information and Decisions Serguei Netessine Netessine spoke about the paper’s findings with to podcast here: Īn edited transcript of the conversation You’re going to talk to us about a paper that has an intriguing title – “Is Tom Cruise Threatened?” - and looks at long tail theory. The paper, “ Is Tom Cruise Threatened? An Empirical Study of the Impact of Product Variety on Demand Concentration,” coauthored with Tom Tan of Southern Methodist University and Wharton’s Lorin Hitt, was published in Information Systems Research. That’s why it is critical for online sellers to develop finely tuned searches for their customers. But a research paper coauthored by Wharton operations, information and decisions professor Serguei Netessine found quite the opposite effect: As consumers are deluged with a dazzling array of choices, they tend to stick to brands they know. In other words, the demand curve moves away from the head and flattens toward the tail. The long tail theory, first postulated in 2004 by writer Chris Anderson, is based on the notion that as retailers use the internet to offer a greater number of products at less cost, they will no longer have to rely on big hits to prop up their sales.
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