Usually these talks are useful with insights, but here we have two people who can’t agree and talk about katsup instead about things we are building out here in startupland. There is much more insight on this subject from the guys @ NFX.
Love the setup, the discussion and that you focus on one concept and go deep. Never heard people saying that a brand can have a network effect. The definition of a brand is the perception of the consumer´s mind. So it can be negative. Can a node in a network be negative so that it impacts the overall network negatively? Mathematically yes and also practically: Fake listings of spammers / competitors on airbnb. Can one node (negative brand perception) in the brand have such a strong negative impact on the network? Not really. Even if the one node hates the brand as much as it wants, on the brand perception level it can´t do anything which can destroy the entire brand. Brand as a network effect, biggest BS I have ever heard about. That´s why there is the concept of brand equity which already does the job, but no freaking brand network effects. It´s not a network, it´s one-to-many. My Nike brand does not get stronger when the entire world wears Nike. It might even get worse bc it loses the lack of exclusivity, come on guys...
Usually these talks are useful with insights, but here we have two people who can’t agree and talk about katsup instead about things we are building out here in startupland. There is much more insight on this subject from the guys @ NFX.
just got off track a little..
Love the setup, the discussion and that you focus on one concept and go deep. Never heard people saying that a brand can have a network effect. The definition of a brand is the perception of the consumer´s mind. So it can be negative. Can a node in a network be negative so that it impacts the overall network negatively? Mathematically yes and also practically: Fake listings of spammers / competitors on airbnb. Can one node (negative brand perception) in the brand have such a strong negative impact on the network? Not really. Even if the one node hates the brand as much as it wants, on the brand perception level it can´t do anything which can destroy the entire brand. Brand as a network effect, biggest BS I have ever heard about. That´s why there is the concept of brand equity which already does the job, but no freaking brand network effects. It´s not a network, it´s one-to-many. My Nike brand does not get stronger when the entire world wears Nike. It might even get worse bc it loses the lack of exclusivity, come on guys...
Thank you all so much for sharing your learnings on this. Super interesting!
I have a huge crush on li jin
new 'offerings' growth are also dictated by popularity perception as well as the mechanics of a network
fun alert: in the ketchup case, their definition of network effect actually flipped, not stretched😂