The 'long tail' questioned

The widely accepted 'long tail' theory of internet commerce has come under fire from US academics, Smart Company reports.

The theory, which suggests that appealing to very narrow niche markets can deliver big profits to online businesses, is said to be limited as it assumes consumers are predominantly niche-focused when purchasing online.

But according to academic Anita Elberse online consumers love nothing more than jumping on the bandwagon and buying or using what other consumers are into as opposed to only making niche purchases.

Elberse's research found online video rentals and song purchases were similar to those sought by offline consumers, a finding that suggests the aggregating influence of the web may be less than is often suggested.