5.Question 5There are several types of network effect - direct and indirect, which one is most relevant on the consumer side in a mobile network?1 pointIndirect network effectsDirect network effects or same-side network effect
Question
5.Question 5There are several types of network effect - direct and indirect, which one is most relevant on the consumer side in a mobile network?1 pointIndirect network effectsDirect network effects or same-side network effect
Solution
Direct network effects or same-side network effects are most relevant on the consumer side in a mobile network. This is because the value of the service increases for both existing and new users as more people join the network. For example, the more people have a particular mobile network, the more valuable that network becomes to its subscribers because they can communicate with a larger group of people.
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Question 8What are DIRECT network effects? 1 pointThis is also called same-side network effect and arise where the presence of an additional customer on one side of the market affects the value to users on the same side of the market. An example is online gamers who benefit from participation of other gamers.Network effect that arises where an additional participation on one-side of the market affects the value to users on the other side of the market. For instance, more merchants accepting Amex increases the value for Amex card holders.
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When more people (hosts) put a room on Airbnb (a marketplace for hosts with accommodations and travelers looking for a place to stay) the service value for travelers grows and vice versa. How would you describe this network effect?1 pointDirect network effectIndirect network effectBoth direct and indirect network effectTravelers effect
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Which of the following are features of an indirect direct distribution channel? There is more than one answer. Tick them all.*2 pointsyou have total conotrol over marketingprices increase as there are costs for intermediariesthere are intermediaries between the producer and the final consumeryou buy directly from the producer
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