The Network Value of Products
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 e-Commerce environments, where products are often presented as a collection of webpages linked by recommendation hyperlinks, creating a large-scale product network. Here we present 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.
Prof. Barak Libai is on the marketing group of the Arison School of Business at the Interdisciplinary Center (IDC), Herzliya, Israel. Previously was a faculty member in the Recanati Graduate School of Business, Faculty of Management, Tel Aviv University, at the Industrial Engineering and Management faculty of the Technion - Israel Institute of Technology, and a visiting Prof. at the MIT Sloan School of Management.
|This research seminar is organised by the Erasmus Centre for Marketing of Innovation (ECMI).|
|Dr. G. Liberali|