Multiple Choice Questions Digital Platforms Ecosystems PDF

Multiple Choice Questions on Digital Platforms and Ecosystems 1\. What is the primary function of digital platforms? a\. To manufacture products for customers b\. To facilitate transactions between buyers and suppliers c\. To create proprietary content for user consumption d\. To regulate indus...

Multiple Choice Questions on Digital Platforms and Ecosystems 1\. What is the primary function of digital platforms? a\. To manufacture products for customers b\. To facilitate transactions between buyers and suppliers c\. To create proprietary content for user consumption d\. To regulate industry standards 2\. Which of the following best describes \*\*direct network effects\*\*? a\. A user benefits from the addition of complementary goods to a platform b\. Utility increases for a user as the number of other users increases c\. Platforms subsidize one side to attract another d\. Larger platforms create more opportunities for niche markets 3\. What is the \*\*penguin effect\*\* in platform markets? a\. Users are hesitant to join an underdeveloped platform due to lack of critical mass b\. Users flock to platforms that provide the highest subsidies c\. Platforms struggle to differentiate in competitive environments d\. Early adopters dominate platform usage and stifle growth 4\. Which of the following is a common tactic to overcome the penguin effect? a\. Raise prices to create exclusivity b\. Subsidize early adopters c\. Invest in standalone hardware solutions d\. Limit user growth initially 5\. What is the primary trade-off in Apps Market Competition (AMC) and exclusivity strategies? a\. Promoting high app quality vs. attracting a large number of apps b\. Encouraging collaboration vs. maintaining competitive advantage c\. Increasing platform visibility vs. reducing user costs d\. Direct competition with rivals vs. indirect network effects 6\. Which of the following describes the \*\*winner-takes-all (WTA)\*\* dynamic in platform markets? a\. Platforms create equal market share opportunities for all participants b\. Market share rapidly consolidates around the strongest platform c\. Network effects decline as user numbers increase d\. All platforms coexist due to niche demand 7\. What is the likely consequence of \*\*intermediate market positioning\*\* for platforms? a\. Increased platform performance b\. Lower platform performance due to ambiguous positioning c\. Strong network effects that benefit niche markets d\. Reduced consumer adoption due to high switching costs 8\. In indirect network effects, what drives user value? a\. Increased number of other users b\. Higher quality of complementary goods or services c\. Price reductions for premium features d\. Availability of exclusive applications 9\. Which stage of platform strategy focuses on setting standards and encouraging adoption? a\. Design b\. Compete c\. Grow d\. Engulf 10\. In the \*\*Design\*\* stage of platform strategy, which is NOT a key managerial question? a\. Who are my customers? b\. How do I encourage adoption? c\. Where is the money side? d\. What is my value proposition? 11\. What is a primary advantage of multi-sided platforms over traditional businesses? a\. They produce their own content exclusively b\. They scale linearly with market growth c\. They benefit from network externalities d\. They eliminate all transaction costs 12\. Which platform growth strategy focuses on exclusivity agreements with marquee users? a\. Apps Market Competition b\. Direct Network Effects c\. Subsidizing d\. Apps Exclusivity 13\. What is the \*\*money side\*\* of a platform's value capture strategy? a\. Users charged to access subsidized users b\. Early adopters incentivized through discounts c\. Developers building on open APIs d\. Core platform developers ensuring scalability 14\. Why do platforms often subsidize one user group? a\. To increase barriers to entry for competitors b\. To reduce production costs c\. To attract another group to the platform d\. To eliminate network effects 15\. In the context of competition, what is an effective way for new entrants to challenge incumbents? a\. Outperform rivals in complementary services b\. Focus on niche audiences only c\. Target the incumbent's supply side d\. Avoid direct competition 16\. Which of the following is an example of \*\*indirect network effects\*\*? a\. A messaging app gains more users due to its popularity b\. A streaming service expands its library to attract more viewers c\. A platform loses users due to data privacy concerns d\. A social network allows advertisers to use user data 17\. In platform co-existence, which condition is most important? a\. Targeting overlapping supply sides b\. Operating in different market niches c\. Securing exclusivity agreements d\. Achieving faster user adoption 18\. What is the key function of trust-building in platforms? a\. Increasing network effects through higher subsidies b\. Reducing moral hazards and ensuring reliable transactions c\. Enabling platforms to eliminate all competitors d\. Encouraging lower-priced products for consumers 19\. How does a platform capture value during the Engulf stage of strategy? a\. By restricting access to its core features b\. By setting up partnerships with competitors c\. By expanding to other products and services d\. By limiting interactions to niche markets 20\. What defines a successful platform in competitive markets? a\. High-quality applications and limited user adoption b\. Effective intermediation and exponential network effects c\. Reducing subsidies for cost efficiency d\. Maintaining low growth to avoid competition \*\*Answer Key\*\* 1\. b 2\. b 3\. a 4\. b 5\. a 6\. b 7\. b 8\. b 9\. c 10\. b 11\. c 12\. d 13\. a 14\. c 15\. c 16\. b 17\. b 18\. b 19\. c 20\. b