A Network Effect is the effect that gives value of an item or service to the customer due to the ammount of that product sold already or the length the service has been in use.
A good example of this effect is the website Ebay. The more people that post and purchase items from this site makes the site grow. The larger the site gets the more it gets used, this is refered to as the bandwagon effect.
Thursday, January 25, 2007
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