Mobile Internet existence User "transfer cost law"

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In a mobile internet vertical market, it is a very interesting and important question that can accommodate several enterprises, our research concludes that the main factor influencing the capacity of a vertical market is the cost of user transfer.

The cost of user transfer here includes the depth of immersion in the use of Internet applications, the time and intellectual costs of user conversion. Generally speaking, the greater the cost of user transfer in the market, the less the number of similar applications can be accommodated. This is the "Transfer cost law".

For example, in the social relations platform, whether using SNS, instant messaging or microblogging, a user often has to devote a certain amount of time and energy to interact with their social contacts, the user's immersion depth is generally deeper. By comparison, the depth of user browsing through news portals is much smaller. In layman's parlance, users can casually change news portals, but if the network is built up over a long time, it is less likely to be discarded. Thus we can deduce a simple conclusion that the social relationship market platform capacity is significantly less than the online news market can accommodate the number of platforms.

Such a conclusion can be understood in microscopic reality. For example, the process by which users use microblogs, similar to a person in the release of their mood diary, users do not have the mood or energy, in a micro-blog platform to express their feelings, and then switch to another microblogging platform to continue to publish, this "unwilling" constitutes the user's conversion costs.

From this, we can see that in the field of social relations, such as Weibo and instant communication, the Matthew effect of the strong is very obvious. This is clearly demonstrated by the vast user base owned by Tencent and Sina Weibo, which also makes it difficult for other platforms in the market to catch up with the leader, and many of the entrants will therefore dismiss the idea of entry. This will create a relatively small number of such social platforms in the marketplace, with a high concentration of users.

But the news platform is different, in the early days, because each news portal platform's content difference is big, the user often can form to see different news to enter different portal's difference habit. However, as news portals generally show a comprehensive trend, that is, users can see the comprehensive information on any news platform, which is tantamount to reducing the differences between the various news platforms. As a result, the conversion costs for users between different news platforms are very low. One result of the market is that there will be many news portal platforms.

This type of vertical market platform capacity, which is affected by user conversion costs, is also reflected in the field of digital consumption. The behavior of users using different consoles varies, for example, using Sony's PSP, Nintendo's Wii, or Microsoft's Xbox 360 requirements. This means that if a consumer uses a different game console, it needs to build a different habit. And a game enthusiast who has established a habit of fixing is often unwilling to accept other gaming platforms that make him feel uncomfortable, thus determining that the number of platforms in the market is unlikely to be excessive.

And the opposite is the other kind of game, which we usually call the light game. The typical characteristic of this kind of game is, the time of the game is relatively short, basically all is based on the page game, the user can open a webpage very casually, close a webpage. This also means that the user's conversion costs are actually very low. One result of this is that a lot of light games are being developed to meet the demands of a large number of users to switch freely.

In the middle of the two have a class of characteristics of the game, such as the war class, role playing class, chess and card class games. The feature of this kind of game platform is that it is not as high as the transfer cost, because it does not need some very solidified behavior habit, but it is not so low light game, in this kind of game the user's immersion depth is often relatively high. Therefore, it can be seen that the user in the process of concentrating on a game, rarely easily occur game platform conversion.

Based on the above, we can also roughly to the digital game market inside the application platform to accommodate the number of orders, that is, the number of game consoles is less than immersion depth of the role playing class or chess class game, while far less than the light web-style game.

Summing up, when a company decides whether to enter a mobile internet vertical market, the user transfer costs and the resulting market to accommodate the number of need to carefully consider.

Author Micro-Credit public account: shentuo-2011

Author Sina Weibo: @ Shen 2011