Q. What term describes the phenomenon where a consumer is motivated to purchase a product based on the buying patterns of their neighbors or peers?
Answer: Demonstration Effect
Notes: The Demonstration Effect is a socio-economic indication where individuals tend to buy commodities based on the purchasing actions of their peers or neighbors. This highlights the significance of social influence in consumer behavior and is especially noticeable in rapidly evolving sectors like fashion apps and technology. It underscores the buying decision process and how societal patterns can impact individual consumer choices.