When the value of an e-business's products and services increase because of distribution over the Internet and the Web, the e-business is exploiting:
A) name identification
B) first-mover advantage
C) scalability
D) the network effect

Question

Quizplus · Accepted Answer

The network effect refers to the phenomenon where the value of a product or service increases as more people use it. For e-businesses distributing products or services over the Internet, this effect can significantly enhance value due to the vast potential audience and ease of access, thus they are exploiting the network effect.

When the Value of an E-Business's Products and Services Increase