You intend travelling to Shanghai, China, to sell parts to local motor vehicle manufacturers. Your travel agent provides a list of 120 local hotels and a Sheraton. In this case, the Sheraton brand-name is likely to be used as a signal of:

Question

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The Sheraton brand is likely to be used as a signal of quality when quality cannot be easily judged among the 120 local hotels. As a recognizable brand-name in the hospitality industry, the Sheraton has established a reputation for providing high-quality accommodations and services. Therefore, by choosing to stay at the Sheraton, the traveler is signaling to other participants in the market that they are committed to providing high-quality goods and services.

You Intend Travelling to Shanghai, China, to Sell Parts to Local