Negative Word of Mouth

question 195

Multiple Choice

Negative word of mouth:

• A)has been shown to increase consumers' intentions to buy products.
• B)has been shown to increase the credibility of a company's advertising.
• C)is less harmful for products that are new to an area or a country.
• D)is a powerful information source in developing countries.

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Definitions:

Dominant-Strategy Equilibrium

A situation in game theory where one strategy is better than others, regardless of what any other player chooses.

Dominant-Strategy Equilibrium

A state in a strategic game where each player's best strategy is independent of the strategies chosen by other players, resulting in a stable outcome no matter what the others do.

Tacit Collusion

A form of collusion that occurs without explicit agreement, where firms indirectly coordinate actions by understanding mutual interests.

Overt Collusion

An explicit agreement among competitors to fix prices, allocate markets, or limit production, which is illegal in many jurisdictions.