Question

While shopping for products such as milk, people are most likely to

a. Examine several brands before making a purchase.
b. Consider several supermarkets in the area.
c. Evaluate a moderate number of product attributes before making a purchase.
d. Use a few external information sources for accessing information on the best brand to buy.

Answer 1

Imperfect information is typically lower when purchasing items like apples at a roadside stand or dinner at a neighborhood restaurant because these goods are directly inspectable or their quality is known through local reputation.

Step-by-step explanation:

Every purchase we make involves some level of imperfect information, which refers to the gaps in the information that a buyer or seller might have about a product or service. This imperfect information can lead to buyer's remorse or hesitation to make purchases due to the uncertainty about the satisfaction that the good or service will provide.

Looking at the given scenarios:

• Buying apples at a roadside stand typically involves low levels of imperfect information. This is because the apples are tangible; buyers can inspect the quality and freshness directly before purchasing.
• Buying dinner at a neighborhood restaurant generally also involves low levels of imperfect information, as one can usually sample or see reviews about the food, and the restaurant's reputation is more accessible.

Therefore, we expect the degree of imperfect information to be lower in these everyday transactions compared to more complex purchases like technology or long-distance delivery services.