Zeal Inc. launches a new software application. The application doesn't offer any new features but is cheap compared to others in the market. However, because of its low price, customers benefit from network effects. The application often crashes due to bugs in the software. Which of the following is likely to be true in this case?
A)Zeal's new product is an example of customization.
B)The users of the product can contact other users for queries.
C)Zeal's new product is likely to be considered reliable although not convenient.
D)The customers are likely to purchase it for the unique job the product does.

Question

Quizplus · Accepted Answer

The network effects imply that the value of the product increases for users as more people use it, suggesting that users can interact or benefit from a larger user base, which could include contacting other users for queries.

Zeal Inc Launches a New Software Application