Worldwide Auction Leader EBay Started Operations in Japan Just Five

question 38

Multiple Choice

Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. But eBay was never able to mount a credible threat and ended up pulling out of the market. This example shows that:

• A) online auction markets are characterized by constant shifts in market dominance.
• B) market dominance in the global marketplace translates to an equivalent position in national markets.
• C) national markets tend to be influenced by factors that are not necessarily localized.
• D) it's imperative to move first in markets influenced by network effects.
• E) firms should always subsidize initial adoption of their products and make them cheaper than their competitor's products.

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Definitions:

Projecting

The psychological defense mechanism of attributing one's own attitudes, feelings, or desires to someone or something else.

Preexisting Expectations

Anticipations or beliefs about something that exist before any new information or experiences.

ABC's of Behavior

An analysis framework for understanding behavior, consisting of antecedents, behaviors, and consequences.

Vicarious Learning

The process of learning by observing the actions and outcomes of others' behaviors, rather than through direct experience.