Many people tend to buy multiple cars from the same manufacturer because
A) doing so reduces the asymmetric information problem; consumers have better knowledge of quality.
B) doing so reduces the asymmetric information problem; consumers have better knowledge of prices.
C) doing so doesn't change the asymmetric information problem but consumers have more information.
D) doing so increases the consumers brand loyalty.

Question

Quizplus · Accepted Answer

Buying multiple cars from the same manufacturer reduces the asymmetric information problem because consumers have better knowledge of the quality of the cars based on their previous experiences. This familiarity can lead to a more informed decision-making process regarding the quality of the vehicles offered by the manufacturer.

Many People Tend to Buy Multiple Cars from the Same