OIM 210 Final Exam with Questions and Answers

OIM 210 Final Exam with Questions and Answers Also known as Metcalfe's Law, or network externalities...when the value of a product or service increases as its number of users expands...when products or services become more valuable as its installed base expands (not physical wires or wireless system that connects pieces of electronics) ANSWER Network Effects The internet is a good example of __________ ___________ Initially, there were few users of the internet...As more users gained access to the internet, however, there were more and more websites to visit and more people to communicate with. The internet became extremely valuable to its users ANSWER network effects Examples of companies who boomed from network effects ANSWER Facebook, eBay, Microsoft, Google, Instagram, Twitter, Skype, YouTube, Uber, Airbnb More users = __________ _________ ANSWER More value ___________ _________ are among the most important reasons you'll pick one product or service over another...not every product or service is subject to them (trash bags, pancake syrup, socks) ANSWER Network effects (a complimentary benefit) allowing for the integration of third-party software products and other complementary goods creating an ecosystem of value-added offerings. Windows, iOS (hardware, cars, gym equipment, and medical records), Kindle, and the standards that allow users to create Facebook apps are all examples ANSWER Platform