The Use of Social Network Services and Websites by Consumers

question 58

Multiple Choice

The use of social network services and websites by consumers to share their latest purchases, deals, coupons, product reviews, want lists, and other shopping finds with friends and contacts is referred to as

• A) social shopping.
• B) showrooming.
• C) viral marketing.
• D) customerization.
• E) influencer marketing.

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Definitions:

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, a crucial concept for decision making in production and pricing strategies.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional benefit over the next best alternative.

Competitive Price-searcher Market

A market structure where firms have some control over the pricing of their products due to differentiation, but still face significant competition.