Q:

Understanding callback function purpose

I realise this is more of a general question, but I've read through similar answers on here but I can't find more of an overview. I'm new to callbacks and I'm trying to understand when they should be used.
The MDN web docs has this example;
function greeting(name) {
  alert('Hello ' + name);
}

function processUserInput(callback) {
  var name = prompt('Please enter your name.');
  callback(name);
}

processUserInput(greeting);

However I'm struggling to see how this is more beneficial than the following, where I'm not passing the greeting function as a parameter?
function greeting(name) {
  alert('Hello ' + name);
}

function processUserInput() {
  var name = prompt('Please enter your name.');
  greeting(name);
}

processUserInput();

A:

As Javascript is async, sometimes it is difficult to handle response from non-blocking functions, for ex. if you are making an ajax call then it'll be executed asynchronously and results will be returned sometime later, by that time the main execution flow will pass the ajax code and starts executing following statements, in that case, its very difficult to catch the response to process further.
To handle those cases, callbacks comes into picture where you pass a function as the parameter to the ajax function and once the response is returned then call the callback by passing response data as a parameter to process further.
more info here http://callbackhell.com/

A:

In simple terms you can say a callback is a way of asking a question (or requesting a task) in advance, i.e. when you're done with this do this (usually with the result). The whole point is to set aside functions that are to be done later, usually because you don't have the required inputs to do them now. 
The 2 main differences between your implementation and the MDN one is that yours is harder to maintain and harder to reason about hence test. 
1. Maintanance / Reusability
Imagine you're a few thousand lines of code into a code base then you're required to change what processUserInput() does. Its much easier to change or write a new callback function instead of changing the function processUserInput(). This would be evident if processUserInput was a bit more complicated. This also means the MDN one is much more useful in various scenarios unlike your implementation. You can reuse it in different situations like saying good bye, capitalizing names etc simply by writing different callbacks to plug into processUserInput().
2. Testing / Easier to reason about
The MDN implementation is much more easier to understand. Its easier to assume that the function processUserInput(greeting) will probably return a greeting than it is to assume what processUserInput() does. This makes it easier to test because you can always be sure the MDN implementation will always return the same output given an input.

