Why do consumers tend to gravitate towards non-profit firms when evaluating credence goods?
A)Consumers like giving to charities
B)Non-profit firms charge lower prices
C)Consumers can deduct some or all of the purchase price for tax purposes
D)Non-profit firms offer goods and services not offered by for profit firms
E)Consumers believe non-profit sllers will be less likely to skimp on quality for profit.

Question

Quizplus · Accepted Answer

Consumers tend to believe that non-profit firms are more likely to prioritize quality over profits, especially in the case of credence goods where the consumer cannot judge the quality of the product or service. Hence, they are more inclined to trust non-profit firms while evaluating such goods.

Why Do Consumers Tend to Gravitate Towards Non-Profit Firms When