Title: Assessing customer-capturing strategies considering network effects and multiple adoption

Authors: Fan-Chen Tseng; Ching-I Teng

Addresses: Department of Multimedia and M-Commerce, Kainan University, No. 1 Kainan Road, Luzhu, Taoyuan County 33857, Taiwan ' Graduate Institute of Business and Management, Chang Gung University, 259, Wenhua 1st Rd, Gueishan Shiang, Taoyuan 333, Taiwan

Abstract: Network effects offer competitive advantages for market leaders in the information technology industry. Although various strategies for new challengers to gain market share have been proposed, the tendency of users to adopt multiple technologies simultaneously has not been studied. This study thus presents a novel concept - user preference for the market-leading technology. The effectiveness of customer-capturing strategies proposed by Teng et al. (2006) is reassessed. The results of this study demonstrate that when considering multiple adoption, user preference for market-leading technology correlates negatively with effectiveness of a challenger's customer-capturing strategies, which goes beyond the findings of Teng et al. (2006).

Keywords: network effects; customer capture; capturing strategies; multiple adoption; technology adoption; IT management; information technology; multiple technologies; user preference; market-leading technology.

DOI: 10.1504/IJIMA.2014.066847

International Journal of Internet Marketing and Advertising, 2014 Vol.8 No.3, pp.208 - 221

Published online: 08 Jan 2015 *

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