Question: 1. ______ exist if the value a consumer derives from a good or service increases when there are more users of the product. Telephone network,
1. ______ exist if the value a consumer derives from a good or service increases when there are more users of the product. Telephone network, fax machines and e-mails are classic examples.
| Direct Network Externalities | ||
| Indirect network externalities | ||
| Herding Behavior | ||
| Information spillover |
2. When Carlos goes into Starr's, a local restaurant that features catfish and hush puppies, he sometimes gets his food fast and hot. Other times his order is slow, and his food arrives at his table cold. If Jim wants a special order, like an extra bowl of Vidalia onions in vinegar, he never knows how long he'll have to wait for his food. Jim is experiencing the service characteristic of __________.
| intangibility | |||||||||||||||||
| inseparability | |||||||||||||||||
| variability | |||||||||||||||||
| autonomy | |||||||||||||||||
| perishability
3. A situation in which a day care provider thinks that parents want better food, when in fact parents are more concerned about their children's security is an example of a gap between __________.
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