For years, your parents claimed they had no desire to join a social web site. Recently, however, they joined one and said they did so because all their relatives have joined the same site with them. Your parents' behavior is an example of
A) a switching cost.
B) a network effect.
C) the impact of positive market feedback.
D) the impact of negative market feedback.

Question

Quizplus · Accepted Answer

The behavior of the parents in joining the social web site because all their relatives have joined the same site with them is an example of network effect. The network effect occurs when the value of a product or service increases as more people use it, making it more attractive for others to join as well. In this case, because all the relatives have joined the social web site, it has become more valuable for the parents to join as well, due to the increased network of connections and interactions available on the site.

For Years, Your Parents Claimed They Had No Desire to Join