Define demonstration effect.
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The demonstration effect refers to the phenomenon where individuals modify their consumption patterns or behaviors after observing the lifestyles, preferences, or consumption habits of others, typically those perceived as more affluent, fashionable, or desirable. This effect is often associated with social learning theory, where individuals imitate or emulate the behavior of others whom they perceive as having higher social status or prestige. The demonstration effect can influence various aspects of consumption, from clothing and technology choices to housing and leisure activities. It plays a significant role in shaping consumer behavior and can have implications for marketing strategies, economic development, and social dynamics.