Browse Definitions :
Definition

Osborne Effect

The Osborne Effect is a reduction in sales of current products after the announcement of a future product. The name of the effect comes from a computer company called Osborne Computer Corporation. After taking over a year from product announcement of new computer models to launch, Osborne Executive and Osborne Vixen, eventually Osborne Computer Corporation ended in bankruptcy.

The Osborne Effect is often driven by the fear of missing out (FOMO). For example, when the North Star Computer announced double capacity floppy drives, the company inadvertently made their current models obsolete. The reduced sales produced a slump and the company never recovered. 

The Osborne Effect often hinges on timing but also situational judgement. Often, it is the result of customers desiring an announced product more than current offerings. Consumers may see the announced product’s features as more desirable. In some cases there may be shortcomings in a current product that are addressed in a new model. In the case of the Osborne 1 Computer, for example, the larger screen of both their new model and the competition's even larger CRT screen made the Osborne 1 Computer an essentially unsellable product.

 

This was last updated in May 2019

Continue Reading About Osborne Effect

SearchNetworking
SearchSecurity
  • man in the browser (MitB)

    Man in the browser (MitB) is a security attack where the perpetrator installs a Trojan horse on the victim's computer that is ...

  • Patch Tuesday

    Patch Tuesday is the unofficial name of Microsoft's monthly scheduled release of security fixes for the Windows operating system ...

  • parameter tampering

    Parameter tampering is a type of web-based cyber attack in which certain parameters in a URL are changed without a user's ...

SearchCIO
  • e-business (electronic business)

    E-business (electronic business) is the conduct of business processes on the internet.

  • business resilience

    Business resilience is the ability an organization has to quickly adapt to disruptions while maintaining continuous business ...

  • chief procurement officer (CPO)

    The chief procurement officer, or CPO, leads an organization's procurement department and oversees the acquisitions of goods and ...

SearchHRSoftware
SearchCustomerExperience
  • clickstream data (clickstream analytics)

    Clickstream data and clickstream analytics are the processes involved in collecting, analyzing and reporting aggregate data about...

  • neuromarketing

    Neuromarketing is the study of how people's brains respond to advertising and other brand-related messages by scientifically ...

  • contextual marketing

    Contextual marketing is an online marketing strategy model in which people are served with targeted advertising based on their ...

Close