When a new product is introduced in the market, a consumer always wants to see how popular the item becomes before she purchases it. The consumer's behavior is known as
A) overt collusion.
B) limit-pricing.
C) a network effect.
D) a rational decision.

Question

Quizplus · Accepted Answer

The behavior described is known as a network effect, where consumers are more likely to adopt a product if they see others using it. This is because the value of a product increases as more people use it. The other answer choices (overt collusion, limit-pricing, and rational decision) do not accurately describe this behavior.

When a New Product Is Introduced in the Market, a Consumer