A Significant Downside to Network Externalities Is That

question 56

Multiple Choice

A significant downside to network externalities is that

• A) there may be large switching costs to consumers of changing products so that consumers end up using products with inferior technologies.
• B) firms may network with unethical suppliers or distributors.
• C) the costs of hiring celebrity endorsements may be very high.
• D) there may be large switching costs to firms changing technologies.

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Definitions:

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Brand Equity

The value and strength of a brand, deriving from consumer awareness, perceptions, loyalty, and associations.

Employee Engagement

The emotional commitment and involvement of employees to their organization, enhancing their willingness to contribute to success.

Revenue Growth

The increase in a company's sales and income over a specific period, indicating its financial health and business expansion.