Going to the DogsDemand for pet services is greatly increasing across the United States. In fact, Americans will spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion. Daycare services for dogs now include toy rooms, outside play areas, doggie massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet, depending on the amenities that the pet owner chooses.Refer to Going to the Dogs. For many dog owners it may be hard to
understand the difference between a traditional kennel and a dog daycare, especially given the price differential. As a result, dog daycares may offer special low rates for first-time users in an effort to reduce which of the following issues concerning the rate of diffusion:
A. compatibility
B. complexity
C. observability
D. innovativeness
E. relative advantage
Answer: C
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