Question 1

Viral promotion involves:

Accepted Answer

A)  offering rebates and incentives to customers for adopting a product or service. 
B)  paying celebrities to use a product visibly to lure customers into unwittingly buying the product. 
C)  emphasizing customer retention and satisfaction, rather than a dominant focus on sales transactions. 
D)  leveraging a firm's customers to promote a product or service. 
E)  sending a pre-written set of messages to customers or prospects over time. 
A)  offering rebates and incentives to customers for adopting a product or service. 
B)  paying celebrities to use a product visibly to lure customers into unwittingly buying the product. 
C)  emphasizing customer retention and satisfaction, rather than a dominant focus on sales transactions. 
D)  leveraging a firm's customers to promote a product or service. 
E)  sending a pre-written set of messages to customers or prospects over time.

Question 2

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 3

Firms that constantly innovate do so to develop open standards for competitors to become compatible.

Accepted Answer

A) True 
 B)False

Question 4

Which statement best describes the relationship between network effects and innovation?

Accepted Answer

A)  Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard. 
B)  Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard. 
C)  More often than not, network effects foster innovation 
D)  More often than not, network effects limit innovation 
A)  Network effects decrease innovation within a standard but increase the number of innovative offerings that compete against a strongly established standard. 
B)  Network effects increase innovation within a standard but decrease the number of innovative offerings that compete against a strongly established standard. 
C)  More often than not, network effects foster innovation 
D)  More often than not, network effects limit innovation

Question 5

_____ occur(s) when increasing number of users lower the value of a product or service.

Accepted Answer

A)  Network internalities 
B)  Market inflexibility 
C)  Congestion effects 
D)  Backward incompatibility 
E)  Convergence 
A)  Network internalities 
B)  Market inflexibility 
C)  Congestion effects 
D)  Backward incompatibility 
E)  Convergence

Question 6

_____ involves competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

Accepted Answer

Technologi

Question 7

Network effects do not influence all consumer products or services.

Accepted Answer

A) True 
 B)False

Question 8

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 9

You are at a packed stadium for the big game and you want to upload a photo of your team's touchdown using Instagram. Your mobile phone shows five bars of service, but you still can't access the Internet. This is likely an example of ______.

Accepted Answer

A)  The Osborne Effect 
B)  Envelopment 
C)  Network effects 
D)  Congestion effects 
A)  The Osborne Effect 
B)  Envelopment 
C)  Network effects 
D)  Congestion effects

Question 10

A market where there are many buyers but only one dominant seller is known as a(n) _____.

Accepted Answer

The answer of A market where there are many buyers...

Question 11

In the context of network effects, the term "network" refers to either wired or wireless systems that connect computing components.

Accepted Answer

A) True 
 B)False

Question 12

Mobile software developers often find iOS more attractive than the Android operating system, because Android runs on many more types devices than iOS and the Android operating system is fragmented into differnet versions, each combination of which needs to be tested.

Accepted Answer

A) True 
 B)False

Question 13

_____ 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 14

Moving first plays a significant role in markets influenced by network effects.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

Metcalfe's

Question 16

Regional anti-trust authorities may consider product bundling by dominant firms to be anticompetitive.

Accepted Answer

A) True 
 B)False

Question 17

Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:

Accepted Answer

A)  despite the presence of network effects, the music industry is not dominated by any single leader. 
B)  the presence of multiple new entrants forces leading firms to drop prices of their offerings. 
C)  firms with strong market dominance can enjoy substantial bargaining power over partners. 
D)  a dominant market share does not necessarily translate to greater profitability for a firm. 
E)  there were cross-side network effects between the various music labels. 
A)  despite the presence of network effects, the music industry is not dominated by any single leader. 
B)  the presence of multiple new entrants forces leading firms to drop prices of their offerings. 
C)  firms with strong market dominance can enjoy substantial bargaining power over partners. 
D)  a dominant market share does not necessarily translate to greater profitability for a firm. 
E)  there were cross-side network effects between the various music labels.

Question 18

The phenomenon of ________________________________________ exists when increasing numbers of users lower the value of a product or service

Accepted Answer

The answer of The phenomenon of ________________________________________ exists when increasing...

Question 19

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 20

With the help of examples explain how firms have used the strategies of alliances and partnerships to try to strengthen and develop network effects.

Accepted Answer

Alliances and partnerships: Firms can us

Viral promotion involves:

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.

Firms that constantly innovate do so to develop open standards for competitors to become compatible.

Which statement best describes the relationship between network effects and innovation?

_____ occur(s) when increasing number of users lower the value of a product or service.

_____ involves competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

Network effects do not influence all consumer products or services.

You are at a packed stadium for the big game and you want to upload a photo of your team's touchdown using Instagram. Your mobile phone shows five bars of service, but you still can't access the Internet. This is likely an example of ______.

A market where there are many buyers but only one dominant seller is known as a(n) _____.

In the context of network effects, the term "network" refers to either wired or wireless systems that connect computing components.

Mobile software developers often find iOS more attractive than the Android operating system, because Android runs on many more types devices than iOS and the Android operating system is fragmented into differnet versions, each combination of which needs to be tested.

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

Moving first plays a significant role in markets influenced by network effects.

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

Regional anti-trust authorities may consider product bundling by dominant firms to be anticompetitive.

Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:

The phenomenon of ________________________________________ exists when increasing numbers of users lower the value of a product or service

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

With the help of examples explain how firms have used the strategies of alliances and partnerships to try to strengthen and develop network effects.

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 2.0

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

Facebook: Building a Business From the Social Graph

Rent the Runway: Entrepreneurs Expanding an Industry by Blending Tech With Fashion, John Gallaugher - Information Systems: a Managers Guide to Harnessing Technology, Version 40

Understanding Software: a Primer for Managers

Software in Flux: Partly Cloudy and Sometimes Free

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 Beyond

Filters

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

Viral promotion involves:

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.

Firms that constantly innovate do so to develop open standards for competitors to become compatible.

Which statement best describes the relationship between network effects and innovation?

_____ occur(s) when increasing number of users lower the value of a product or service.

_____ involves competing by offering a new technology that is so superior to existing offerings that the value overcomes the total resistance that older technologies might enjoy via exchange, switching cost, and complementary benefits.

Network effects do not influence all consumer products or services.

You are at a packed stadium for the big game and you want to upload a photo of your team's touchdown using Instagram. Your mobile phone shows five bars of service, but you still can't access the Internet. This is likely an example of ______.

A market where there are many buyers but only one dominant seller is known as a(n) _____.

In the context of network effects, the term "network" refers to either wired or wireless systems that connect computing components.

Mobile software developers often find iOS more attractive than the Android operating system, because Android runs on many more types devices than iOS and the Android operating system is fragmented into differnet versions, each combination of which needs to be tested.

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

Moving first plays a significant role in markets influenced by network effects.

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

Regional anti-trust authorities may consider product bundling by dominant firms to be anticompetitive.

Apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. This implies that:

The phenomenon of ________________________________________ exists when increasing numbers of users lower the value of a product or service

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

With the help of examples explain how firms have used the strategies of alliances and partnerships to try to strengthen and develop network effects.

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 2.0

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

Facebook: Building a Business From the Social Graph

Rent the Runway: Entrepreneurs Expanding an Industry by Blending Tech With Fashion, John Gallaugher - Information Systems: a Managers Guide to Harnessing Technology, Version 40

Understanding Software: a Primer for Managers

Software in Flux: Partly Cloudy and Sometimes Free

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 Beyond

Filters

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