1.1. "If an organization chooses to standardize on a particular product, it may be very expensive for it to make the switch owing to the costs of coordination and retraining" (Shapiro and Varian, 2010).
2. The Cost of Producing Information
2.1. "Information is costly to produce but cheap to reproduce. Economists say that production of an information good involves high fixed costs but low marginal costs. The cost of producing the first copy of an information good may be substantial, but the cost of producing additional copies is negligible" (Shapiro and Varian, 2010).
3. Information as an "Experience Good"
3.1. "Economists say that a good is an experience good if consumers must experience it to value it. Virtually any new product is an experience good, and marketers have developed strategies such as free samples, promotional pricing, and testimonials to help consumers learn about new goods" (Shapiro and Varian, 2010).
4. Network Externalities
4.1. "Large networks are more attractive to users than small ones. The term that economists use to describe this effect, network externalities, usefully highlight two aspects of information systems that are crucial for competitive strategy" (Shapiro and Varian, 2010)
5. "Offer a product line and let users choose the version of the product most appropriate for them"(Shapiro and Varian, 2010).
6. Benefits of Social Media Marketing
6.1. Social media is so prevalent in today's society. Basically everyone has smart phone's so access to new information and news is so easy.
7. Versioning
8. Network Effects
8.1. "If the value to an individual depends on how many other members of his group use the product, there will be value to standardizing on a single product" (Shapiro and Varian, 2010).
