Some consumers make judgments about hidden dimensions of products from observable attributes, such as inferring that because a used car is clean and shiny, its mechanical condition is likewise of top quality. In this case, the clean and shiny exterior is a(n):
A) intrinsic attribute.
B) guarantee.
C) product signal.
D) warranty.

Question

Quizplus · Accepted Answer

The clean and shiny exterior of the used car acts as a product signal, where observable attributes are used by consumers to infer the quality of non-observable or hidden dimensions of a product.

Some Consumers Make Judgments About Hidden Dimensions of Products from Observable