Lock-in effects The Lock-in effect refers to the ability of a business model to prompt customers to engage in repeat transactions, thus creating loyalty. The significance of lock-in effects is that it creates and enhances product value. The lock-in effect is facilitated by the availability of reward systems, unique design, trust and customization. Several programs are utilized in promoting repeat transactions; for example, many outlets have loyalty schemes where customers collect loyalty points that are redeemable or reward repeat purchases with discounts. Starbuck Coffee Co. has a loyalty program where customers collect ‘stars’ for every purchase made, which are redeemable for various privileges or discounts. Essentially, users need to trust a web page in order for them to transact, thus security is of the essence for successful internet economics. Consequently, the design of a site influence customers’ choice to have repeat transaction. Amazon.com is a good example of a company that utilizes the lock-in effect fairly well; the site has a database of its frequent customers’ credit card details, hence simplifying the processing of new transactions. Additionally, the lock-in effect is maintained by creating high switching costs, which are costs that customers have to incur in order to use other products. For instance, the telecommunication industry uses high interconnection fees to discourage customers from making calls across other networks. Finally, the site should provide personalized and efficient customer support and feedback portal, which assists the marketing team to collect information from customers. Importantly, customers should be able to make payments using common types of payment modes. Why are some countries poor and others rich? Primarily, the difference between wealthy and poor countries is in the existing culture; some cultures promote growth whiles others do not. Similarly, some cultures promote hard work and delayed gratification. According to Kellecioglu (2), “poor nations have less economically efficient cultural mentality while rich countries have a more economically efficient cultural mentality.” In addition, the strength and capacity of institutions affect a countries’ economic development. Citizens in countries with sound institutions free of corruption and other vices individuals are more motivated to work hard than citizens in countries without proper institutions. Essentially, individuals are motivated to work hard if they are assured of the protection of their gains by government institutions. Therefore, the type of leadership pattern or system ultimately influences economic growth or lack of it. Some researchers attribute the economic difference between nations to slavery and colonialism where poor nations lost their resources to wealthy nations. According to Kellecioglu (10), economic difference between nations has a positive correlation with the predominant race of the citizen. The author concludes that the ethnicities of black morphological traits are generally poorer than white. Further, the geography and topology of a nation affect its capacity to develop economically. Notably, African terrains inhibit economic growth due to harsh climate. However, countries endowed with natural resources benefit from the commodity, hence stimulating