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

question 73

Multiple Choice

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.

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Definitions:

Voluntary Turnover

The act of employees leaving a job on their own accord rather than being fired or laid off.

Innovative Products

New or significantly improved goods or services that introduce novel features or capabilities to the market.

High Margins

Situations where there is a significant difference between the cost of producing a good or service and its selling price, typically indicating a high profit potential.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its cost.