Question

In financial selling, deception is an ever-present danger mostly because:

Question options:
a) The customer has to rely on the seller for all of the relevant information.
b) Financial salespeople often do not know very much about the securities they sell.
c) There are not many laws that regulate financial services.
d) No one ever has all the information at a given time.

Answer 1

To reassure a buyer faced with imperfect information, a seller of goods can offer guarantees or warranties, provide transparent and accurate information about the product, and offer testimonials or reviews from satisfied customers.

Step-by-step explanation:

When faced with imperfect information, a seller of goods can use several strategies to reassure a potential buyer.

One way is through offering guarantees or warranties on the product, which provides a sense of security to the buyer.

Another strategy is to provide transparent and accurate information about the product, including its features, specifications, and any potential risks or limitations.

This helps build trust and confidence in the buyer. Additionally, sellers can offer testimonials or reviews from other satisfied customers as social proof of the product's quality and reliability.