Fads vs. Trends in Business

What is the main difference between a fad and a trend in business?

• A fad lasts longer than a trend.

• A fad is short-lived, while a trend develops gradually and endures.

• A trend is always less profitable than a fad.

• A trend is unpredictable, while a fad is stable.

Which of the following best describes the pet rock phenomenon?

• A long-term trend in pet ownership

• A fad that quickly became popular and then disappeared

• A sustainable business model

• An example of green energy

Why is chasing fads considered risky in business?

• Fads require too much investment in technology.

• Fads often disappear quickly, leading to potential losses.

• Fads are always illegal.

• Fads guarantee long-term profits.

Which of the following is an example of a trend, according to the text?

• The pet rock

• Green energy

• Fidget spinners

• Beanie Babies

What was unique about Gary Dahl’s pet rock business?

• It was a sustainable trend.

• It involved selling actual pets.

• It was a short-lived craze that made millions in a few months.

• It was based on organic farming.

How did organic foods change over time, as described in the text?

• They became more expensive and rare.

• They became more affordable and widely available.

• They lost popularity.

• They were banned from supermarkets.

What is the main advice given to businesses regarding fads and trends?

• Always invest in fads for quick profits.

• Focus on trends for long-term success.

• Avoid both fads and trends.

• Only follow what competitors do.

Which of the following statements is true about trends?

• Trends lose popularity quickly.

• Trends build momentum and last over time.

• Trends are always started by celebrities.

• Trends are unpredictable and random.

What was the selling price of each pet rock in 1975?

• $1.00

• $2.50

• $3.95

• $5.00

Which of the following is NOT mentioned as a characteristic of a fad?

• Explodes in popularity overnight

• Fizzles out quickly

• Sustains appeal over time

• Carries high risk