MGT 2210 Exam 3 Practice Test Questions with Correct Answers

Per the textbook, what fundamental concept is critical for the growth of platforms like Facebook, , and Twitter? Focusing on isolated market demographics. Limiting user communication capabilities. Restricting access to platform resources. Utilizing network effects. Utilizing network effects. Per the textbook, what is the main advantage of "Being Compatible with the Leading Network" for new tech entrants? It guarantees instant brand recognition and market dominance. It allows new entrants to avoid investing in customer service. It facilitates user adoption due to reduced switching costs and familiar usage paradigms. It legally binds leading networks to share a portion of their revenue. It facilitates user adoption due to reduced switching costs and familiar usage paradigms. Per the textbook, how do "stronger staying power" and "network effects" relate in the context of digital platforms? Staying power and network effects are typically seen as mutually exclusive strategies. Network effects reduce the need for a platform's staying power. Stronger staying power refers to the platform's physical durability, not network effects. Platforms with stronger staying power attract more users, reinforcing network effects. Platforms with stronger staying power attract more users, reinforcing network effects. Per the textbook, what best describes complementary benefits in the context of network effects? Environmental benefits from using digital platforms over physical products. Benefits that competitors provide with similar products. Additional advantages or services that enhance the core offering's value. Direct benefits received by every new user joining the platform. *Additional advantages or services that enhance the core offering's value. Per the textbook, why is being compatible with the leading network important for new tech products? It prevents the product from receiving negative reviews. It increases the product's visibility on e-commerce platforms. It allows for easier user adoption and interoperability with popular systems. It ensures the product can be legally sold in most regions. It allows for easier user adoption and interoperability with popular systems.