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When others adopt, the benefits from the product increase, due to externalities or uncertainty reduction, and the product becomes more and more plausible for many potential customers. Moldovan and Goldenberg (2004) [ 12 ] incorporated negative word of mouth (WOM) effect on the diffusion, which implies a possibility of a negative q.
Imitation (from Latin imitatio, "a copying, imitation" [1]) is a behavior whereby an individual observes and replicates another's behavior. Imitation is also a form of learning that leads to the "development of traditions , and ultimately our culture .
A demand is usually seen as artificial when it increases consumer utility very inefficiently; for example, a physician prescribing unnecessary surgeries would create artificial demand. [3] Government spending with the primary purpose of providing jobs (rather than delivering any other end product) has been labelled "artificial demand". [4]
Demonstration effects are effects on the behavior of individuals caused by observation of the actions of others and their consequences. The term is particularly used in political science and sociology to describe the fact that developments in one place will often act as a catalyst in another place.
Veblen goods such as luxury cars are considered desirable consumer products for conspicuous consumption because of, rather than despite, their high prices.. A Veblen good is a type of luxury good, named after American economist Thorstein Veblen, for which the demand increases as the price increases, in apparent contradiction of the law of demand, resulting in an upward-sloping demand curve.
An increase or decrease in price of housing will not shift the demand curve rather it will cause a movement along the demand curve for housing i.e. change in quantity demanded. But if we look at mortgage rates (a factor other than price), even if housing prices remain unchanged, an increased mortgage rate leads to a lower willingness to buy at ...
Supply chain as connected supply and demand curves. In microeconomics, supply and demand is an economic model of price determination in a market.It postulates that, holding all else equal, the unit price for a particular good or other traded item in a perfectly competitive market, will vary until it settles at the market-clearing price, where the quantity demanded equals the quantity supplied ...
In addition, foreign demand for the product grows, but it is associated particularly with other developed countries, since the product is catering to high-income demands. For instance, in the case of the newly invented product, this rise in foreign demand (assisted by economies of scale ) leads to a trade pattern whereby the United States ...