Many consumers seek to be different and exclusive by demanding less of a commodity as more people consume it, is called?

Correct option is B

The Snob effect describes a situation where consumers desire exclusivity and uniqueness in the products they purchase. As more people begin to consume a particular commodity, its perceived exclusivity decreases, leading snob consumers to reduce their demand for it. They prefer to own goods that are rare or not commonly owned, aiming to distinguish themselves socially. This behavior contrasts with typical demand patterns because the demand decreases as popularity increases. This is different from the Bandwagon effect, where demand increases as more people consume the product, and from the Veblen effect, where higher prices lead to higher demand due to the prestige associated with the product.

Information Booster:

The Snob effect is a form of consumer behavior reflecting a desire for exclusivity and social distinction. When a product becomes widely used, snob consumers reject it to maintain their status. This effect is common in luxury goods and fashion markets where uniqueness is valued. Understanding this effect helps marketers in positioning products for niche or elite segments, emphasizing rarity and exclusivity rather than mass appeal.

Additional Knowledge:

(a) Bandwagon effect: This effect occurs when consumers demand a product more as more people buy it, driven by a desire to fit in or follow trends, opposite to the Snob effect.

(c) Veblen effect: Refers to products where demand increases as price rises, due to their status symbol appeal, not directly related to exclusivity based on consumption numbers.

(d) Substitution effect: Describes consumer tendency to switch from one good to another when prices change, unrelated to exclusivity or social status.