Final answer:
The statement is false; media richness does not refer to financial costs but rather to the capacity of a medium to convey information effectively through various cues like body language and immediate feedback.
Step-by-step explanation:
The statement that media richness refers to the financial cost of using the medium relative to its frequency of use in the organization is false. Media richness actually refers to the ability of a communication medium to effectively convey information and promote understanding. This concept is rooted in the idea that different media vary in the extent to which they support cues like body language, tone, immediate feedback, and personal focus. The richer a medium, the more likely it is to convey a message effectively in a complex communication situation because it can transmit more cues and facilitate more rapid feedback.
For instance, video conferencing is considered a richer medium compared to text messages because it allows for visual cues, tone, immediate feedback, and a personal focus. On the other hand, community radio, being a medium that provides real-time talk and discussion, is rich in its ability to cater to linguistic diversity and offer content in multiple languages thanks to its oral nature. However, the concept of media richness doesn't directly relate to financial costs or frequency of usage. Instead, it focuses on how well a medium can transmit complex messages seamlessly.