4- Technological Change Flashcards
3 characteristics of market information regimes
1) Attention Focus: They provide a focus of attention for organizations within a particular field, guiding them on what to pay attention to.
2) Sensemaking: They help participants understand the market activities within their field, making sense of what is happening.
3) Socially and Politically Constructed: These regimes are shaped by social and political factors, leading to biases and assumptions that are often unquestioned.
define market information regime
system in competitive fields where organizations gather, interpret, and distribute information about market activities.
define field acc to anand and peterson
the organized and competitive environment in which actors like record labels, artists, and consumers operate
allows researchers to dissect power structures, relationships, and hierarcheis in the industyr.
define billboard as an example of a market information regime
billboard was a panel of 200 sale outlets that surveys with nominal categories like top/ strong/ good sellers and compiles results into performance ranking.
the political tone of billboard was very objective, and they embodied neutrality.
what happened in 1991 that changed the market information regime?
the founding of soundscan
what’s soundscan?
a sales tracking system used in the music industry
electronically monitors music sales from retail outlets and online platforms
provides accurate and real time data
what were the concerns raised about soundscan?
the chart would be too volatile
smaller labels, new artissts, and records in the lower half woudl suffer
Realization that the new chart couldn’t be manipulated like the old one.
how did soundscan affect independent labels? why?
Sound scan did reduce the chances of independent label albums appearing on charts.
Because: previously, independent label promoters could manipulate sales figures to influence Billboard’s charts, but SoundScan’s introduction, which tracked actual sales data, made this manipulation impossible
how did the measurement focus change with soundscan?
Emphasis on “Unit Sales” for accurate evaluation, replacing the earlier focus on “Chart Position.”
how did soundscan change the consolidation of industry control?
Previously, only large companies had costly data access, but SoundScan democratized information.
how did soundscan affect market segmentation?
Since soundscan collected data about the whole market, rather than a predefined list, it became easier to identify new niche market opportunities
define the blockbuster strategy
the focus on creating extremely popular and profitable products or services.
how did the blockbuster strategy work offline?
there’s limited space of shelves, therefore retailers need to make selection decisions.
having a few hits compensates for the losses of many flops
is the blockbuster strategy still applicable in the online world where there’s infinite shelf space? what are the two main stances on this?
YES according to the superstar theory
NO according to the long tail theory
explain why superstar theory thinks blockbuster strategy is still applicable in the online world?
Exceptional products by highly talented individuals still captivate consumers.
People tend to follow trends and popular choices, we’re social creatures
explain why long tail theory thinks blockbuster strategy is NOT applicable to the online world?
Online platforms empower consumers to find products tailored to their unique tastes.
Consumer demand is diversifying, challenging the dominance of generic hits.
what does the long tail theory describe?
it describes the shift in consumer behavior and market dynamics due to digital platforms and online retail.
describe the long tail distribution
the demand curve is flatter
- a vast array of niche products (the tail) collectively have significant sales
according to the long tail theory, why did a shift occur? (3)
1) infinite shelf space online
2) consumers seek niche things
3) reduced costs per unit which means ncihe things can be economically viable
compare the distrbution curves of long tail, and blockbusters
In blockusters, there’s a small number of blockbuster products forming the head of the distribution curve. in these markets, the few top items (head) dominate sales).
In the long tail, the distribution is longer yet flatter. there’s a vast array of niche products that form the tail of the curve.
McPhee’s Theory of Exposure-
increased exposure leads to familiarity, which often results in a more positive evaluation of the product or concept.
theory of exposure -> Double Jeopardy
Niche products lack extensive exposure, making them less familiar.
Heavy users explore niche goods but lack familiarity, impacting their preference for these products compared to hits.
define collective social dynamics
how people’s decisions and behaviors are influenced by the actions and opinions of others in online communities, shaping trends and outcomes in cultural markets.
components of collective social dynamics
1) popularity as a quality signal- due to an overwhelming amount of products people use popularity as an indicator
2) coordinated choices by community bonds
3) unstable preferences due to social construction
