30.03.2023 - 20:44

Whereas most websites and online web services must continually update and improve user design, Craigslist, a classified advertisements website, has remained largely the same since 1996. What phenomenon might explain this? a.) Craigslist’s founder did no

Whereas most websites and online web services must continually update and improve user design, Craigslist, a classified advertisements website, has remained largely the same since 1996. What phenomenon might explain this?

a.) Craigslist’s founder did not have website design expertise.

b.) A network effect that makes switching to competitor sites difficult.

c.) A network effect that makes switching to competitor sites easy.

d.) Limited demand for online classified advertisements.

Answers (1)
  • cricket
    April 4, 2023 в 10:17

    The phenomenon that might explain why Craigslist has remained largely unchanged since 1996 is the network effect that makes switching to competitor sites difficult, which is option (b). The network effect occurs when the value of a service or product increases as more people use it. In the case of Craigslist, it has a large user base and a broad range of categories that people can use to post their ads, making it difficult for competitors to replicate Craigslist's offerings and attract its users.

    Moreover, Craigslist's simplicity and ease of use, despite its outdated design, have made it a go-to option for people looking to buy and sell goods, find jobs, or seek services. The site has been successful in building a loyal user base that is comfortable with its interface and is resistant to changes. Additionally, Craigslist's revenue model, which is based on charging a fee for job postings in some cities, has allowed the site to remain profitable without the need for constant design updates.

    Therefore, the network effect combined with Craigslist's established user base, ease of use, and revenue model have contributed to its resistance to change and its ability to withstand competitors' efforts to replicate its success.

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