Why Is Viral Adoption Especially Important to Paypal and Uber?

Q1. Why is viral adoption especially important to PayPal and Uber? (show word count; should be <=100 words)

Viral adoption is especially important to PayPal and Uber because it enables these firms to create network effects. Viral adoption encourage consumers to join a network because they know that others have already join it and that they will found people to communicate with. Indeed, with services such as online payments and housing, people want to be sure that the app is safe. If consumers see positive recommandations on social networks, or if the app is recommended by a friend that can subsidies them so that they both earn money, consumers will be more likely to sign-up. These phenomena of being positively influenced by what others do is often referred as social proof.

Q2. Why does Adobe allow the free download of Acrobat Reader?  (show word count; should be <=100 words)

Giving away the revenues from the sale of Acrobat Reader was a way to create market in which to sale Acrobate files. In a two-side market, it is sometimes efficient to give away products of one side, and to charge the part who will be more likely to pay. In the case of Adobe, consumer might be unwilling to pay for Acrobat Reader, but if they can have it for free they it will encourage them to pay for Acrobat files. [82 words]

Q3. In what other ways do Amazon’s information systems reduce errors? Why is error reduction so critical to firm performance? (show word count; should be <=100 words)

Amazon’s information systems reduce error by recording everything. From the way items are stored in shelves (no two similar products sit next to each other) to the way workers inspect or receive items, everything is automated. This complex and complete information systems enables the firm to ship 2 million items on any given holiday. Error reduction is important since Amazon is a firm that sales directly to consumers. Customer coercive is critical because consumers can express their opinion through reviews online. Obtaining good reviews is necessary to maintain old consumers and to attract new ones.

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