Network Effects Occur When

question 59

Multiple Choice

Network effects occur when:

• A) the utility of large networks, particularly social networks, can scale exponentially with the size of the network.
• B) the value of a product or service increases as its number of users expands.
• C) people do and believe things merely because many other people do and believe the same things.
• D) a concept or idea is repeatedly asserted in a community, regardless of whether sufficient empirical evidence has been presented to support it.
• E) money can be made by offering a near-limitless selection of products or services.

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Definitions:

Differentiate

The act of differentiating a product or service from competitors in order to appeal more to a specific target audience.

Loyal Customers

Individuals who consistently prefer and choose a particular brand or product over competitors, often due to satisfaction, rewards, or emotional connections.

Marketing Expenditures

The total costs associated with activities aimed at creating demand for products or services, including advertising, promotions, and distribution.

Mobile Phone

A mobile phone that enables users to make and receive calls using a radio frequency connection as they move around within a service provider's coverage area.