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MST Module 4 Exam With Correct Actual Questions And Correctly Well Defined.

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Network effects - correct answer When the value of a product or service increases as its number of users expands. AKA Network externalities or Metcalfe's law Platforms - correct answer Products or services that allow for t...

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MST Module 4 Exam

Network effects - correct answer When the value of a product or service increases
as its number of users expands. AKA Network externalities or Metcalfe's law

Platforms - correct answer Products or services that allow for the development and
integration of software products and other complementary goods, effectively creating an ecostystem of
value-added offerings

Exchange - correct answer the first source of network effects, Every product or
service subject to network effects fosters some kind of exchange. This can include money, messaging,
movies/music, and video games/computer programs.

staying power - correct answer the second source of network effects. Long term
viability of a product or service.

switching costs - correct answer The cost a consumer incurs when moving from one
product to another. It can involve actual money spent (e.g., buying a new product) as well as
investments in time, any data loss, and so forth. Directly related to staying power. .

total cost of ownership (TCO): - correct answer Economic measure of the full cost of
owning a product.

All of the costs associated with the design, development, testing, implementation, documentation,
training and maintenance of a software system.

complementary benefits - correct answer the third source of network effects.
Products or services that add additional value to the primary product or service that makes up a
network.

customer acquisition costs - correct answer The amount of money a firm spends to
convince a customer to buy (or in the case of free products, try or use) a product or service.

, One-sided market - correct answer a market that derives most of its value from a
single class of users. an example of this would be messaging, as it only takes effort from one person to
send a message.

same-side exchange - correct answer benefits derived by interaction among
members of a single class of participant. an example of this would be video games.

cross-side exch - correct answer When an increase in the number of users on one
side of the market (console owners, for example) creates a rise in the other side (software developers).

two sided market - correct answer Network markets comprised of two distinct
categories of participant, both of which that are needed to deliver value for the network to work

monopoly - correct answer A market in which there are many buyers but only one
seller.

oligopoly - correct answer A market structure in which a few large firms dominate a
market

technological leap - correct answer 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.

strategies for competing in markets with network effects - correct answer move
early

subsidize product adoption

leverage viral promotion

expand the market by bringing in new users or convergence

form alliances and partnerships

establish distribution channels

seed the market with complements

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