Network product

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When network product is known in business administration a product that is part of a product is when this affiliation alone has a major role in the purchase decision of the customer. With the purchase of a "basic product", the customer often decides for the entire product family, which is why it is important for the manufacturer to achieve the largest possible market share for these basic products. For this reason, the basic products are often sold below production costs (see penetration strategy ).

Examples of network products:

  • Video games : With the purchase of the game console, the customer chooses a manufacturer. For them, a high market share is important so that third-party manufacturers produce games for their own system, as the number of published game titles is often decisive for future customers. Game consoles are therefore sold below manufacturing cost.
  • Wet razor : By buying a model, the customer decides in favor of the manufacturer. The handles are therefore offered very cheaply.
  • Telephone provider : Network effects due to the fact that the customer often obtains telephone and Internet connections from one provider.