Which of the following is NOT a strategy used by firms selling network goods to

Question

Which of the following is NOT a strategy used by firms selling network goods to gain new customers and to keep existing ones?
Question 13 options:  
1) teaser strategies  
2) product differentiation  
3) lock-out strategies  
4) market segmentation

When a consumer joins a network, the value of the network to existing users _____ and the value to potential users _____.
Question 14 options:  
1) rises; rises  
2) rises; does not change  
3) does not change; rises  
4) falls; falls

If one firm in a relatively new network goes out of business, we expect the demand curve for the network good to:
Question 15 options:
1) pivot downward.  
2) pivot upward.  
3) shift downward.  
4) The curve should not change.

What is the slope for the short-run supply curve for a network good?
Question 16 options:  
1) It is vertical.  
2) It is horizontal.  
3) It is a 45-degree line.  
4) It is downward sloping.

Network externalities benefit all:
1) users and all potential users.  
2) users except for the user generating the network effect, and all potential users.  
3) users, except for the user generating the network effect.  
4) potential users.

The Fort Worth New Mom's Club is an example of a:
Question 18 options:  
1) physical network.  
2) mental network.
3) social network.  
4) virtual network

Attractive up-front deals used as an incentive to entice new customers into a network are:
Question 19 options:  
1) teaser strategies.  
2) product differentiation.  
3) lock-out strategies.  
4) market segmentation.

Networks connected by things such as fiber optics, transportation routes, or satellites are known as:
Question 20 options:  
1) physical networks.  
2) neural networks.  
3) virtual networks.  
4) social networks.

A network connected by a transportation route is a:
Question 21 options:  
1) physical network.  
2) mental network.  
3) social network.  
4) virtual network.

The benefit added by user #50,000 in a new network is _____ than the benefit added by user #50,000,000, due to _____ returns to the network externality.
Question 22 options:
1) larger; increasing
2) larger; diminishing
3) smaller; increasing
4) smaller; diminishing

When a consumer joins a network, he generates a(n):
Question 23 options:
1) private benefit, only.
2) private benefit and an external benefit equal to the vertical distance between the private demand curve and the social demand curve.
3) private benefit and an external benefit equal to the horizontal distance between the private demand curve and the social demand curve.
4) external benefit, only.

Zenon Corporation operates in a network industry and charges existing customers $9.99 per month for its services, but offers new customers who sign a three-year contract six months of service for $1 per month. This new customer offer is known as:
Question 24 options:  
1) a teaser strategy.  
2) product differentiation.  
3) a lock-out strategy.  
4) market segmentation.

Explanation / Answer

teaser strategies rises; does not change shift downward. It is vertical. users and all potential users. social network larger; diminishing private benefit and an external benefit equal to the horizontal distance between the private demand curve and the social demand curve. market segmentation

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