Which of the following is the major means to signal good quality of goods by firms?
A)sales.
B)advertisement.
C)warranties/guarantees.
D)both sales and advertisements.

Question

Quizplus · Accepted Answer

Warranties/guarantees are considered the major means to signal good quality of goods by firms. They provide assurance to the customers that the firm stands behind its product and is confident in its quality, which increases the customers' trust in the product. Sales and advertisements do not necessarily guarantee good quality, as they can be used to promote products with low quality as well.

Which of the Following Is the Major Means to Signal