Which of the following statements illustrates the network effects to which portals are subject?
A)Specialized vertical market portals attract only 2-10 percent 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 phenomenon in which the value of a product or service increases as more people use it. In the case of portals, the more users a portal has, the more valuable it becomes to advertisers and consumers. This is illustrated in statement B, which states that the value of the portal increases geometrically as its reach (i.e., number of users) increases.

Which of the Following Statements Illustrates the Network Effects to Which