MBA 703 SPRING 24 AP1 DARBAN COMPREHENSIVE EXAM
QUESTIONS WITH DETAILED VERIFIED AND 100%
ACCURATE ANSWERS BRAND NEW EXAM ALREADY
GRADED (A+ PASS)
The value of a product or service ______ as it's number of users
expands. Ans✓✓✓ INCREASES - More users = MORE VALUE
Presence of ______ effects influences the choice of one product or
service over another Ans✓✓✓ NETWORK
Why is network effect important? Ans✓✓✓ The more customers you
have the more attractive the marketplace is for the providers and vice
versa.
What is network effect? Ans✓✓✓ -When a person buys a good or
service, (s)he becomes part of a network
-The network increases in size
-utility that people derive depends on size of network
-By joining I make everyone else in the network better off
What is staying power? Ans✓✓✓ The long-term viability of a product
or service.
What is switching costs? Ans✓✓✓ Incurred when moving from one
product to another
, *directly related to staying power
*strengthens the value of network effects a strategic asses
Total cost of ownership (TCO) Ans✓✓✓ An economic measure of the
full cost of owning a product (typically computing hardware and/or
software). TCO includes direct costs such as purchase price, plus
indirect costs such as training, support, and maintenance.
What is the third part to sources of network effect? Ans✓✓✓
Complementary benefits: Products or services that add additional value
to the primary product or services that makes up a network.
What are platforms? Ans✓✓✓ Allow for development and integration
of software products and other complementary goods.
What are some key takeaways from Chapt 9? Ans✓✓✓ Products and
services subject to network effects get their value from 1) Exchange, 2)
perceived staying power 3) complementary products and services
What is a one-sided market? Ans✓✓✓ Market that derives most of it's
value from a SINGLE CLASS of users
What are same-side exchange benefits of a one-sided market? Ans✓✓✓
Benefits derived by interaction among members of a single class of
participants
QUESTIONS WITH DETAILED VERIFIED AND 100%
ACCURATE ANSWERS BRAND NEW EXAM ALREADY
GRADED (A+ PASS)
The value of a product or service ______ as it's number of users
expands. Ans✓✓✓ INCREASES - More users = MORE VALUE
Presence of ______ effects influences the choice of one product or
service over another Ans✓✓✓ NETWORK
Why is network effect important? Ans✓✓✓ The more customers you
have the more attractive the marketplace is for the providers and vice
versa.
What is network effect? Ans✓✓✓ -When a person buys a good or
service, (s)he becomes part of a network
-The network increases in size
-utility that people derive depends on size of network
-By joining I make everyone else in the network better off
What is staying power? Ans✓✓✓ The long-term viability of a product
or service.
What is switching costs? Ans✓✓✓ Incurred when moving from one
product to another
, *directly related to staying power
*strengthens the value of network effects a strategic asses
Total cost of ownership (TCO) Ans✓✓✓ An economic measure of the
full cost of owning a product (typically computing hardware and/or
software). TCO includes direct costs such as purchase price, plus
indirect costs such as training, support, and maintenance.
What is the third part to sources of network effect? Ans✓✓✓
Complementary benefits: Products or services that add additional value
to the primary product or services that makes up a network.
What are platforms? Ans✓✓✓ Allow for development and integration
of software products and other complementary goods.
What are some key takeaways from Chapt 9? Ans✓✓✓ Products and
services subject to network effects get their value from 1) Exchange, 2)
perceived staying power 3) complementary products and services
What is a one-sided market? Ans✓✓✓ Market that derives most of it's
value from a SINGLE CLASS of users
What are same-side exchange benefits of a one-sided market? Ans✓✓✓
Benefits derived by interaction among members of a single class of
participants
