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. Describe the Notion of “The Long Tail” (3 pts) _______________________________

ID: 457563 • Letter: #

Question

. Describe the Notion of “The Long Tail” (3 pts)

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Give Definitions of each of the following E-commerce concepts: (2 pts each)

Impressions ________________________________________________

Hits ______________________________________________________

Reach _____________________________________________________

Conversion Rate _____________________________________________

Attrition Rate _______________________________________________

Short Essay I ( 5 pts)

38. Explain the notion of Packet Switching. How does it work, when was it invented and what purpose does it serve? How large are the packets? (5 pts)

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39. Short Essay II (7 pts)

As you know, there are attempts to charge taxes on internet sales.

In fact in some states sales taxes are already in effect. Amazon,
by far the world’s largest internet commerce site, is in the middle of the battle. The States that have decided to collect internet sales tax include: Texas, Illinois, New York, New Jersey and California.

What has Amazon done in response to this? (2 pts)

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What is Amazon’s position regarding the “Main Street Fairness Act? (3 pts)

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What is the real “sticking point” as described in the “Insight on Business (p294 Laudon/Traverse) ? (2 pts)

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Explanation / Answer

Notion of Long Tail

In marketing we refer to long tail when a particular product is being sold to a small number of customers. The right word that can be used for this kind of marketing can be Niche marketing. This is another form of creating more variety of a product and making quick revenue from the niche demand of the customers. The primary reason for existence of long tail in marketing is probably because of internet which has reduced the storage costs to near zero. One thing to note here is that the firms usually catering to niche market manufactures different varieties of a product for small number of customers but it collectively adds up to a large market share.