Which of the Following Statements Illustrates the Network Effects That

question 55

Multiple Choice

Which of the following statements illustrates the network effects that portals are subject to?

• A) Specialized vertical market portals attract only 2-10 percent of the audience, while a few large megaportals garner most of the market.
• B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
• C) The greater the amount of content provided by a portal, the greater its value to the community.
• D) The greater number of portals available, the greater the potential audience for each.

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Definitions:

United States

A country in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

Recent Decades

A term referring to the relatively immediate past, often used to describe changes or trends over the last 20 to 30 years.

Economic Situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer’s home country and abroad; see also inflation, foreign currency fluctuations, and interest rates.

Target Markets

Specific groups of consumers at which a company aims its products and services, identified by various demographic, geographic, and psychographic factors.