Question 1

Almost all networks derive most of their value from a single class of users.

Accepted Answer

A) True 
 B)False

Question 2

Firms need a _________for users to download apps and setup payments.

Accepted Answer

The answer of Firms need a _________for users to download...

Question 3

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following terms is used as an alternative to switching costs?

Accepted Answer

A)  Lock-in 
B)  Complementary benefits 
C)  Exchange benefits 
D)  Straddling costs 
E)  Network impedance 
A)  Lock-in 
B)  Complementary benefits 
C)  Exchange benefits 
D)  Straddling costs 
E)  Network impedance

Question 5

Samsung also leveraged _____to make Samsung Pay accepted at more retailers than either Apple Pay or Android Pay.

Accepted Answer

backwarkd

Question 6

In a market influenced by network effects, the winning product or service is often determined by its technical superiority, with technically strong newcommers able to unseat the dominant incumbents.

Accepted Answer

A) True 
 B)False

Question 7

A firm is said to have suffered from the _____ when it preannounces a forthcoming product or service, and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.

Accepted Answer

The answer of A firm is said to have suffered...

Question 8

Which of the following factors represents one of the sources of value derived from network effects?

Accepted Answer

A)  Congestion 
B)  Price transparency 
C)  Information symmetry 
D)  Staying power 
E)  Complementary costs 
A)  Congestion 
B)  Price transparency 
C)  Information symmetry 
D)  Staying power 
E)  Complementary costs

Question 9

_____ are products and services that allow for the development and integration of complementary goods.

Accepted Answer

The answer of _____ are products and services that allow...

Question 10

Microsoft's Live Maps and Virtual Earth 3D was a late entrant to the Internet mapping game. Users had already put in countless hours building resources that meshed with Google Maps and Google Earth. However, by adopting the same keyhole markup language (KML) standard used by Google, any work done by users for Google in KML could be used by Microsoft. What strategy of Microsoft has allowed it to catch up with Google?

Accepted Answer

A)  Making a new market a subset of its main offering 
B)  Taking advantage of complementary products developed for a prior generation of technology 
C)  Entering an uncontested, low-profit market instead of competing in saturated, high-profit markets 
D)  Exchanging technical expertise in one area with another firm to effectively suit resource capabilities 
E)  Making a new product compatible with the leading standard 
A)  Making a new market a subset of its main offering 
B)  Taking advantage of complementary products developed for a prior generation of technology 
C)  Entering an uncontested, low-profit market instead of competing in saturated, high-profit markets 
D)  Exchanging technical expertise in one area with another firm to effectively suit resource capabilities 
E)  Making a new product compatible with the leading standard

Question 11

Network effects are also known as _____ Law or Network ____________.

Accepted Answer

Metcalfe's

Question 12

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equalibrium where their respective market shares are roughly identical.

Accepted Answer

A) True 
 B)False

Question 13

Uber and PayPal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do?

Accepted Answer

a) Leveraged viral customer promotions b

Question 14

The phrase ________________ refers to positive influence created when someone finds out that others are doing something.

Accepted Answer

The answer of The phrase ________________ refers to positive influence...

Question 15

Which of the following products or services is not subject to network effects?

Accepted Answer

A)  Banking services 
B)  Snack chip manufacturing 
C)  Video game consoles 
D)  Social networks 
E)  Cell phone services 
A)  Banking services 
B)  Snack chip manufacturing 
C)  Video game consoles 
D)  Social networks 
E)  Cell phone services

Question 16

An instant-messaging standard is an example of a one-sided market.

Accepted Answer

A) True 
 B)False

Question 17

The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to:

Accepted Answer

A)  the low pricing of Xbox which eroded users' confidence in the product. 
B)  game developers favoring PS2 for its larger user base obtained because the PS2 was launched months before the Xbox. 
C)  the presence of several cheap, rival imitations which ate into Xbox's market share. 
D)  PS2's technical superiority over the Xbox. 
E)  the straddling strategy adopted by Microsoft to expand in both video game and DVD player markets. 
A)  the low pricing of Xbox which eroded users' confidence in the product. 
B)  game developers favoring PS2 for its larger user base obtained because the PS2 was launched months before the Xbox. 
C)  the presence of several cheap, rival imitations which ate into Xbox's market share. 
D)  PS2's technical superiority over the Xbox. 
E)  the straddling strategy adopted by Microsoft to expand in both video game and DVD player markets.

Question 18

Network effects do not influence all consumer products or services.

Accepted Answer

A) True 
 B)False

Question 19

Windows OS, the iPhone, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be _____.

Accepted Answer

A)  pure plays 
B)  coopetitors 
C)  adaptors 
D)  platforms 
E)  venture capitalists 
A)  pure plays 
B)  coopetitors 
C)  adaptors 
D)  platforms 
E)  venture capitalists

Question 20

Technological leapfrogging is offering a new technology that is superior to existing offering that the value overcomes the total resistance.

Accepted Answer

A) True 
 B)False

Almost all networks derive most of their value from a single class of users.

Firms need a _________for users to download apps and setup payments.

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

Which of the following terms is used as an alternative to switching costs?

Samsung also leveraged _____to make Samsung Pay accepted at more retailers than either Apple Pay or Android Pay.

In a market influenced by network effects, the winning product or service is often determined by its technical superiority, with technically strong newcommers able to unseat the dominant incumbents.

A firm is said to have suffered from the _____ when it preannounces a forthcoming product or service, and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.

Which of the following factors represents one of the sources of value derived from network effects?

_____ are products and services that allow for the development and integration of complementary goods.

Network effects are also known as _ Law or Network ________.

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equalibrium where their respective market shares are roughly identical.

Uber and PayPal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do?

The phrase ________________ refers to positive influence created when someone finds out that others are doing something.

Which of the following products or services is not subject to network effects?

An instant-messaging standard is an example of a one-sided market.

The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to:

Network effects do not influence all consumer products or services.

Windows OS, the iPhone, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be _____.

Technological leapfrogging is offering a new technology that is superior to existing offering that the value overcomes the total resistance.

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Exam 8: Understanding Network Effects: Strategies for Competing in a Platform-Centric, Winner-Take-All World

Almost all networks derive most of their value from a single class of users.

Firms need a _________for users to download apps and setup payments.

Many firms attempt to enhance their network effects by creating a platform for the development of third-party products and services that enhance the primary offering.

Which of the following terms is used as an alternative to switching costs?

Samsung also leveraged _____to make Samsung Pay accepted at more retailers than either Apple Pay or Android Pay.

In a market influenced by network effects, the winning product or service is often determined by its technical superiority, with technically strong newcommers able to unseat the dominant incumbents.

A firm is said to have suffered from the _____ when it preannounces a forthcoming product or service, and experiences a sharp and detrimental drop in sales of current offerings as users wait for the new item.

Which of the following factors represents one of the sources of value derived from network effects?

_____ are products and services that allow for the development and integration of complementary goods.

Network effects are also known as _____ Law or Network ____________.

The natural state of a market where network effects are present is for there to be intense competition between several rivals that come to an equalibrium where their respective market shares are roughly identical.

Uber and PayPal used similar strategies when trying to jumpstart network effects that were vital in creating their dominance. What did each do?

The phrase ________________ refers to positive influence created when someone finds out that others are doing something.

Which of the following products or services is not subject to network effects?

An instant-messaging standard is an example of a one-sided market.

The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to:

Network effects do not influence all consumer products or services.

Windows OS, the iPhone, the Wii, and Facebook's application programming interfaces allow for the development and integration of complementary goods by third parties. Based on this evidence, all these products or services are said to be _____.

Technological leapfrogging is offering a new technology that is superior to existing offering that the value overcomes the total resistance.

Setting the Stage: Technology and the Modern Enterprise

Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners From Losers

Zara: Fast Fashion From Savvy Systems

Netflix in Two Acts: the Making of an E-Commerce Giant and the Uncertain Future of Atoms to Bits

Moores Law and More: Fast, Cheap Computing and What This Means for the Manager

Disruptive Technologies: Understanding the Giant Killers and Considerations for Avoiding Extinction

Amazoncom: an Empire Stretching From Cardboard Box to Kindle to Cloud

Social Media, Peer Production, and Web 20

The Sharing Economy, Collaborative Consumption, and Creating More Efficient Markets Through Technology

Facebook: a Billion-Plus Users, the High-Stakes Move to Mobile, and Big Business From the Social Graph

Rent the Runway: Entrepreneurs Expanding an Industry

Understanding Software: a Primer for Managers

Software in Flux: Open Source, Cloud, Vittualized and App-Driven Shifts

The Data Asset: Databases, Business Intelligence, Analytics, Big Data, and Competitive Advantage

A Managers Guide to the Internet and Telecommunications

Information Security: Barbarians at the Gateway and Just About Everywhere Else

Google in Three Parts: Search, Online Advertising, and an Alphabet of Opportunity

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Network effects are also known as _ Law or Network ________.