Have you ever been to a restaurant and seen people checking in on Facebook? Or have you used an app like Yelp that requires you to check-in before it will provide any information about the area?
These are examples of networks effects, where consumers’ willingness to use an item depends on how many other people use it. If more people are using the same product or service, then the customer is more likely to join in himself.
This blog post discusses why this happens and what types of products/services can experience network effects. Critical Analysis: This blog post discusses why network effects happen and what types of products/services can experience this.
The author briefly mentions the different types of networks, but does not go into detail about each one. He also doesn’t mention how to identify a product or service that has a network effect before it is released on the market.
It would be helpful if he went more in-depth with his article so readers could learn more about how they might use these findings for themselves. Outline: Network Effect – What Is It? Types of Network Effects Product With A Network Effect Typical Signs That You Are Experiencing An Increase In Customers Common Situations Where A Company Might Release Something And Experience A Fast Growth Blog Post