Question

1. Netflix has leveraged “The Long Tail” to its advantage. Which of the following is not true?
2. 1. The Long Tail is a phenomenon whereby firms can make money by offering a near limitless selection.
   2. The Long Tail refers to the large number of products unavailable through conventional retail stores.
   3. Blockbuster successfully the Internet to leverage The Long Tail.
   4. Customer are often attracted to firms who offer vast choice in goods and services.

2. Network Effects: Which of the following is not true?
3. 1. When network effects are present, the value of a product or service increases as the number of users grows.
   2. Most products are subject to network effects.
   3. When network effects are present, they are among the most important reasons you’ll pick one product or service over another.
   4. Network effects refers to a common user base that is able to communicate and share with one another.

Answer 1

Answer1
Netflix has leveraged “The Long Tail” to its advantage. Which of the following is not true?
c) Blockbuster successfully the Internet to leverage The Long Tail.

Explanation:

The term "The Long Tail" was coined by Chris Anderson- a Britsh writer (while working at Wired Magazine) in year 2004.
The long term a business strategy where businesses reap significant profits by selling small volumes each in large number of (hard to find anywhere else) products to large number of customers.
The strategy theorizes that the customers are moving away from mainstream products and looking for niche products that cater to uniques tastes.

Hence all the other 3 options explain how Netflix has leveraged “The Long Tail” to its advantage>

The explain being the Netflix Original contents which is exclusively available only on Netflix.
Amazon Prime original content also leverages “The Long Tail” just like Netflix.





Answer 2 Network Effects: Which of the following is not true

b) Most products are subject to network effects.  

Most products are NOT subject to network effect - as we'll probably not care if some uses a particular shampoo, or wear the same kind of socks, or installs the same kind of doorbell as you.

Apart from this all other options are relevant with the Network effect.

Blockbusters and Megatrends (usually available everywhere) - Long tail > Niche products (usually not available) anywhere else