Which of the following is the major means to signal good quality of goods by firms?
A) Sales
B) Advertisements
C) Warranties/guarantees
D) Both sales and advertisements

Question

Quizplus · Accepted Answer

Warranties and guarantees are a major means to signal good quality of goods by firms. They assure customers that the product is of good quality and that the firm stands behind its product. Sales and advertisements may attract customers, but they do not necessarily indicate the quality of the goods being sold.

Which of the Following Is the Major Means to Signal