Sales concentrations of digital brands
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Date
2025
Authors
Anesbury, Z.W.
Stocchi, L.
Naami, T.
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Journal article
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Journal of Marketing Management, 2025; 41(5-6):535-554
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Abstract
This study compares the observed and theoretical sales concentration levels for over 200 digital brands in 18 diverse online categories and four countries. It applies the Pareto Share, 'heavy half' and Negative Binomial Distribution (NBD) to online brand purchase frequencies with a classic empirics-first approach. From the results, it emerged that, on average, the digital Pareto Share is 47% and the heavy half of a brand's buyers contribute to 71% of its online sales. That is, the heaviest 20% of a brand's online customers account for just under half its sales, and about seven in ten sales are from buyers who purchased the brand more often than the median frequency. These outcomes closely match the NBD's theoretical expectations. Besides advancing empirical research on sales concentration for digital brands, this study provides valuable practical guidelines for effectively targeting (or 'activating') online buyers based on sales concentration levels.
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Copyright 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License. (http://creativecommons.org/licenses/by-nc-nd/4.0/)