Question

Anderson does NOT recommend the following as a means of benefiting from the long tail?

1) Make everything available
2) Recommend products to consumers
3) Raise prices on specialty products
4) Embrace niche products and consumers

Answer 1

According to Anderson, raising prices on specialty products is not a recommended strategy for benefiting from the long tail, as it can lead to loss of sales to competitors with lower prices. The correct option is 3.

Step-by-step explanation:

Anderson does not recommend raising prices on specialty products as a means of benefiting from the long tail. While embracing niche markets, making all products available, and recommending products to consumers align with leveraging the long tail, increasing prices could drive customers towards competitors offering lower prices for similar or identical products.

This strategy can result in a loss of sales, as customers are likely to switch to cheaper alternatives, as mentioned in Chapter 8 of the provided reference material which advises against raising prices when other firms in the market offer the same product at a lower cost.