What Is the Bandwagon Effect

question 10

Multiple Choice

What is the bandwagon effect?

• A) a positive network externality where a consumer's demand for a product increases because no one else has it
• B) a negative network externality where a consumer's demand for a product decreases because too many people own it
• C) a negative network externality where a consumer's demand for a product decreases because of the "snob effect"
• D) a positive network externality where a consumer's demand for a product increases because others own it

---

Definitions:

Research Funding

Financial support provided by governments, private entities, or individuals to conduct research projects and investigations.

Feigned Scarcity

An artificial limitation of available products or services to incite demand through a sense of urgency.

Social Influence Technique

Strategies or methods used to change or influence individual or group behaviors, beliefs, or attitudes, utilizing principles of persuasion, conformity, and social norms.

Limited Supply

A situation where the availability of a product, resource, or commodity is not sufficient to satisfy the demand for it.