Around the World, Middle-Class, Youth, and Elite Markets That Consume

question 162

Multiple Choice

Around the world, middle-class, youth, and elite markets that consume similar assortments of products and services, regardless of geographic location, are referred to as

• A) transnational consumers.
• B) borderless consumers.
• C) international consumers.
• D) multinational consumers.
• E) global consumers.

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Definitions:

Bandwagon Effect

Positive network externality in which a consumer wishes to possess a good in part because others do.

Network Externalities

Benefits or detriments to a product's value that result from the number of users the product has.

Negative Network Externalities

Adverse effects on a user of a product or service because the number of other users is too large or incompatible in some way.

Snob Effect

A phenomenon where the demand for a particular good increases as the price increases because the good is perceived as exclusive or high-status.