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Elaboration and Measurement of Network Effects Concept

Directory : Faculty : Intellectual Contributions

Intellectual Contribution by Yikuan Lee

Contribution Title

Elaboration and Measurement of Network Effects Concept


of the 2002 AMA American Marketing Association Winter Educator Conference, Orlando, Feb 2002.




A product exhibits network effects if the utility or value of the product to its users increases with the number of adopters. The source of this value is derived from outside the product itself and is the result of the size of the installed base and/or the availability of complementary or compatible products. We have three goals: (1) to provide a marketing perspective of network effects rather than a macro economic perspective; (2) to develop a measurement construct; (3) and to test the measurement properties of this construct. Overall, there is some support for a conceptualization involving direct network effects, indirect network effects, and standards.

Complete Citation


See Faculty: Yikuan Lee

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