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network effect

   Also found in: Wikipedia 0.01 sec.

network effect

The resulting increased value of a product because more and more people use it. Telephones, fax machines and computer operating systems are examples. A product's success is due to compatibility and conformity issues, not that the product or technology may be superior or inferior to the competition. For more on the subject, read "Winners, Losers & Microsoft" by Stan J. Liebowitz and Stephen E. Margolis, published 1999 by The Independent Institute, Oakland, CA (ISBN 094599980-1). See tipping point.



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The affiliate acts as the customer acquisition lead, Big Fish Games functions as the marketing and customer retention engine, and the My Game Space program's network effect exponentially grows the affiliate's customer base.
athenahealth attributes these results to its growing Massachusetts client base, and the ever-increasing effectiveness of its on-demand service as more medical practices contribute to the powerful network effect created by the company's unique payer rules-engine and web-based practice management system, athenaNet[R].
More than half of the 80,000 new casual game customers generated by this program visited our site for the first time within the last 15 days, showing the impressive rate of acceleration created by the network effect of friends inviting friends.
 
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