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The Relationship between Market Share and Information in a High-tech Industry

Theoharakis, V., Vakratsas, D., Wong, Veronica (2004) The Relationship between Market Share and Information in a High-tech Industry. Review of Marketing Science, 2 (1). p. 15. ISSN 1546-5616. (doi:10.2202/1546-5616.1005) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.2202/1546-5616.1005

Abstract

The role of information in high-technology markets is critical (Dutta, Narasimhan and Rajiv 1999; Farrell and Saloner 1986; Weiss and Heide 1993). In these markets, the volatility and volume of information present managers and researchers with the considerable challenge of monitoring such information and examining how potential customers may respond to it. This article examines the effects of the type and volume of information on the market share of different technological standards in the Local Area Networks (LAN) industry. We identify three different types of information: technological, availability and adoption. Our empirical application suggests that all three types of information have significant effects on the market share of a technological standard, but their direction and magnitude differ. More specifically, technology-related information is negatively related to market share as it demonstrates that the underlying technology is immature and still evolving. Both availability and adoption-related information have a positive effect on market share, but the former is larger than the latter. We conclude that high-tech firms should emphasize the dissemination of information, especially availability-related, as part of their promotional strategy for a new technology. Otherwise, they may risk missing an opportunity to achieve a higher share and establish their market presence.

Item Type: Article
DOI/Identification number: 10.2202/1546-5616.1005
Uncontrolled keywords: Hype, Information, Market Share, Technology
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School > Marketing
Depositing User: Cathy Norman
Date Deposited: 09 Jan 2013 16:56 UTC
Last Modified: 29 May 2019 09:54 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/32831 (The current URI for this page, for reference purposes)
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