ITPEC FE Morning April 2019 Question 73
ITPEC FE Morning April 2019 — Question 73 of 80
Long Tail — In Internet shopping, niche products with low individual sales collectively account for a significant share of total revenue.
The correct answer is d): the accumulated sales of poorly selling product groups make up a percentage that cannot be ignored against total sales. This describes the "long tail" effect — visualized as a sales distribution curve where the long right tail of niche items, taken together, rivals the short head of bestsellers.
Why not the others:
- a) describes affiliate marketing — earning referral fees for directing customers via links
- b) describes drop shipping — selling products without holding inventory by shipping directly from manufacturers
- c) describes a CMS (Content Management System) — integrated management and delivery of digital web content
Key rule: The long tail concept (coined by Chris Anderson) explains why online retailers like Amazon can profit from millions of niche products — unlike physical stores limited by shelf space.
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