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Why and How Quality Wins over Network Effects and What it Means

Journal of Marketing Research, Forthcoming

Marshall School of Business Working Paper No. MKT 23-09

7 Pages Posted: 29 Aug 2008 Last revised: 3 Sep 2014

Gerard J. Tellis

University of Southern California - Marshall School of Business, Department of Marketing

Rakesh Niraj

Case Western Reserve University

Eden Yin

University of Cambridge - Judge Business School

Date Written: August 28, 2008

Abstract

Networks are an important and very interesting phenomenon, which is increasingly prevalent in contemporary high-tech markets. Many papers in the literature have explored how network effects can lead to perverse markets. Contrary to this position, Tellis, Yin and Niraj (2009) suggest that quality is important even in the presence of network effects, which enhances rather than overwhelms the role of quality. The insightful commentaries of Brown and Morgan (2009), Ratchford (2009), Rossi (2009), Reibstein (2009), and Shugan (2009) seem to concur that the evidence of Tellis, Yin and Niraj (2009) is persuasive. However, the commentaries raise a number of important issues that enrich the meaning of the constructs and the interpretation of the findings. They provide a wealth of directions for future research.

Keywords: Network effects, Quality, Path dependance, Tipping

Suggested Citation

Tellis, Gerard J. and Niraj, Rakesh and Yin, Eden, Why and How Quality Wins over Network Effects and What it Means (August 28, 2008). Journal of Marketing Research, Forthcoming; Marshall School of Business Working Paper No. MKT 23-09. Available at SSRN: https://ssrn.com/abstract=1260497

Gerard J. Tellis (Contact Author)

University of Southern California - Marshall School of Business, Department of Marketing ( email )

Hoffman Hall 701
Los Angeles, CA 90089-0443
United States
213-740-5031 (Phone)
213-740-7828 (Fax)

HOME PAGE: http://gtellis.net

Rakesh Kumar Niraj

Case Western Reserve University ( email )

10900 Euclid Avenue
PBL 235
Cleveland, OH OHIO 44106-7235
United States

HOME PAGE: http://weatherhead.case.edu/faculty/Rakesh-Niraj/

Eden Yin

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

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