GetYoung Inc., a cosmetic company, recently launched a beauty bar soap that claims to soften the users' skin, giving it a natural glow, and also make them look up to 5 years younger. A lot of women eagerly tried out this soap and received positive results and thus encouraged their friends to try out the soap. GetYoung Inc. gained profits very fast through this word-of-mouth advertising. This scenario best illustrates ________.

Question

Quizplus · Accepted Answer

This scenario best illustrates the concept of network effects, as positive results and word-of-mouth advertising by satisfied customers led to more people trying out and buying the product, leading to increased profits for the company.