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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31445
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| Title: | Assessing Value in Product Networks |
| Authors: | Carmi, Eyal
Libai, Barak
Oestreicher, Gal
Yassin, Ohad |
| Keywords: | product value, cross-selling, electronic commerce, recommendation,
networks, social networks, long tail |
| Issue Date: | 17-Jan-2012 |
| Series/Report no.: | Working Papers;11_29 |
| Abstract: | Traditionally, the value of a product has been assessed according to the
direct revenues the product creates. However, products do not exist in
isolation but rather influence one another's sales. Such influence is
especially evident in eCommerce environments, where products are often
presented as a collection of webpages linked by recommendation
hyperlinks, creating a largescale product network. Here we present the
first attempt to use a systematic approach to estimate products' true
value to a firm in such a product network. Our approach, which is in the
spirit of the PageRank algorithm, uses easily available data from
large-scale electronic commerce sites and separates a product’s
value into its own intrinsic value, the value it receives from the
network, and the value it contributes to the network. We apply this
approach to data collected from Amazon.com and from BarnesAndNoble.com.
Focusing on one domain of interest, we find that if products are
evaluated according to their direct revenue alone, without taking their
network value into account, the true value of the "long tail"
of electronic commerce may be underestimated, whereas that of
bestsellers might be overestimated1. |
| URI: | http://hdl.handle.net/2451/31445 |
| Appears in Collections: | NET Institute Working Papers Series
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