Does Quality Win? Competing Against an Entrenched Market-Leader in High-Tech Markets
In recent years, with some early entrants to a market commanding huge market shares, critics have wondered whether the best quality products win in the market place. Early entrants can gain a position of wide-spread acceptance among users. The fact that a critical mass already uses the product might prompt new consumers to snowball onto this early choice leading to consumer lock-in. Many economists fear that such “network effects” may enable inferior products to defend their entrenched positions even against higher quality alternatives. This article tests the validity of this premise in 19 high-tech markets including hardware, software, and services.
Year of publication: |
2010
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Authors: | Tellis Gerard J. ; Eden, Yin ; Rakesh, Niraj |
Published in: |
GfK Marketing Intelligence Review. - De Gruyter Open. - Vol. 2.2010, 2, p. 8-15
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Publisher: |
De Gruyter Open |
Saved in:
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