Final answer:
Sales credits due to poor product quality in an online grocery and food delivery service are categorized as External failure costs. These costs occur after the product has been delivered to the customer and can have significant consequences such as customer loss and a damaged reputation. The degree of imperfect information varies with the buying situation, being lower for purchases like roadside apples and neighborhood restaurant meals.
Step-by-step explanation:
The type of quality cost for an online grocery and food delivery service where sales credits are issued to customers due to poor product quality, such as bruised fruits and nearly expired products, is considered an External failure cost. These costs arise when products fail to reach quality standards after being delivered to customers, which leads to returns, refunds, or complaints. External failure costs are typically higher than internal failure costs because they can result in lost customers, a damaged reputation, and additional service costs associated with addressing customer complaints.
In the context of imperfect information, the degree of imperfect information is variable depending on the purchasing scenario. For instance:
- A relatively low degree of imperfect information is expected when buying apples at a roadside stand because one can easily assess the quality of the fruit.
- A relatively low degree of imperfect information is likely when ordering dinner at a neighborhood restaurant since one can make judgments based on prior experiences or the reputation of the establishment.
Imperfect information becomes an issue when buyers cannot reliably assess the quality of a product or service before purchase, possibly leading to market reluctance from both buyers and sellers.