Question

Orange, an online-gaming site, has millions of users. The site has many games which pit users against each other. The relative standing of each user is presented in the form of an elaborate ranking system for each game. Users pride themselves on gaining the highest points and the highest rank possible. This rise in user participation has increased the value of Orange significantly. This is an example of ________.

Answer 1

C) network effects

Step-by-step explanation:

Theses are the options for the question

A) monopolistic competition

B) internal marketing

C) network effects

D) guerilla marketing

From the question we are informed about Orange, which is an online-gaming site, has millions of users. The site has many games which pit users against each other. The relative standing of each user is presented in the form of an elaborate ranking system for each game. Users pride themselves on gaining the highest points and the highest rank possible. This rise in user participation has increased the value of Orange significantly. This is an example of network effects. The network effect can be regarded as phenomenon which occur as a result of increased numbers of people or increase in participants improvement about the value of a good or service. One of the example of this effect is Internet. Initially, there were few number of users on the Internet, because people do not see much value then , it was some military and some research scientists that values it, but now almost everyone values it.