Multiple Choice
When a company adopts a low-cost provider strategy, what is its primary objective?
0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Services high in ________ qualities have characteristics that the buyer can evaluate after purchase.
A
credence
B
search
C
production
D
experience
Verified step by step guidance1
Understand the three types of qualities used to evaluate services: search qualities, experience qualities, and credence qualities.
Search qualities are attributes that a buyer can evaluate before purchase, such as color or price.
Experience qualities are attributes that a buyer can evaluate only after using the service, such as taste or satisfaction.
Credence qualities are attributes that are difficult or impossible for the buyer to evaluate even after purchase, such as the expertise of a doctor.
Since the problem asks for qualities that can be evaluated after purchase, identify that the correct term is 'experience' qualities.
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