Which of the following statements best describes the potential impact of network effects with respect to portals?
A) Specialized vertical market portals attract only a small percentage of the audience, while a few large megaportals garner most of the market.
B) The value of the portal to advertisers and consumers increases geometrically as reach increases.
C) The greater the amount of content provided by a portal, the greater its value to the community.
D) The greater number of portals available, the greater the potential audience for each.

Question

Quizplus · Accepted Answer

Network effects refer to the idea that the value of a product or service increases as more people use it. With respect to portals, this means that the more users a portal has, the more valuable it becomes to both advertisers and consumers. A larger audience means more potential customers for advertisers, and more content and services for consumers. Therefore, Option B is the best choice as it highlights the potential impact of network effects on portals.

Which of the Following Statements Best Describes the Potential Impact