Question

After checking through a summary of quality reports, Mike finds that there is not a problem with the quality of yogurt from his production line. Mike feels confident that the vendors must be experiencing a problem that goes beyond the production floor. How should Mike respond?

Answer 1

A seller of goods can reassure a buyer faced with imperfect information by providing warranties and guarantees, offering trial periods, and showcasing customer reviews.

Step-by-step explanation:

When a seller of goods is faced with imperfect information, there are several ways they can reassure a potential buyer:

1. Providing warranties and guarantees: Sellers can offer warranties or guarantees on their products to assure buyers that they will be protected if any issues arise.
2. Offering trial periods: Sellers can allow buyers to try out the product or service before making a final purchase, giving them a chance to assess its quality.
3. Showcasing customer reviews: Sellers can share positive customer reviews and testimonials to demonstrate the satisfaction of previous buyers, thereby building trust.