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Superior Customer Value and Network size in Markets Characterized by Network effects

Superior Customer Value and Network size in Markets Characterized by Network effects

Fan-Chen Tseng, Ching-I Teng, David Chiang
Copyright: © 2008 |Pages: 14
ISBN13: 9781599048314|ISBN10: 1599048310|ISBN13 Softcover: 9781616926472|EISBN13: 9781599048338
DOI: 10.4018/978-1-59904-831-4.ch004
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MLA

Tseng, Fan-Chen, et al. "Superior Customer Value and Network size in Markets Characterized by Network effects." E-Business Models, Services and Communications, edited by In Lee, IGI Global, 2008, pp. 84-97. https://doi.org/10.4018/978-1-59904-831-4.ch004

APA

Tseng, F., Teng, C., & Chiang, D. (2008). Superior Customer Value and Network size in Markets Characterized by Network effects. In I. Lee (Ed.), E-Business Models, Services and Communications (pp. 84-97). IGI Global. https://doi.org/10.4018/978-1-59904-831-4.ch004

Chicago

Tseng, Fan-Chen, Ching-I Teng, and David Chiang. "Superior Customer Value and Network size in Markets Characterized by Network effects." In E-Business Models, Services and Communications, edited by In Lee, 84-97. Hershey, PA: IGI Global, 2008. https://doi.org/10.4018/978-1-59904-831-4.ch004

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Abstract

Network effect indicates that the value of connecting to a network is positively associated with the current number of customers connected to that network. Network effect strengthens the strong firms, weakens the weak firms, and may lead to a winner-take-all market. Thus, managing customer perceived value is crucial in markets with network effects. This article models customer perceived value, presents ways to improve the value, and discusses the relationship between customer perceived value and network size. Implications for e-business practitioners are discussed.

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