Sentence examples for credence quality from inspiring English sources

Moreover, similarly to what emerges from the literature on fruit consumption, we assume that credence quality characteristics play a major role in affecting consumers' choice to consume more frequently avocado fruit.

Information flow is important with differentiated products where credence quality attributes, such as animal welfare are not visible in the physical product at purchase or, even, after consumption (Nelson 1970; Dyer and Singh 1998).

In this case, the value function is maximized at the credence quality level Q * and the value the consumer places on the good falls as the quality deviates from Q * Eleft[{V}_nright]={displaystyle underset{0}{overset{1}{int }}}V(Q f(Q dQ={P}_n (1).

A producer must answer two questions: (1) will the producer's goods contain credence qualities?

Differences in the costs of producing credence qualities can only partially explain this behavior.

This outcome makes sense when a consumer wants as many credence qualities as possible.

When the producer promises more credence qualities, however, non-certified goods are more valuable to the consumer.

In other words, the consumer thinks the good most likely has the credence qualities defined by the standards.

A central issue for the producer of a credence good is whether the price will reflect the good's credence qualities.

a The zone of certification for a skeptical consumer whose ideal quality is equal to 1 (i.e., she prefers as many credence qualities as possible).

a The zone of certification for a trusting consumer whose ideal quality is equal to 1 (i.e., she prefers as many credence qualities as possible).