Relevant information is always crucial whenever you plan to purchase any item. However, in certain areas and for some goods, consumers may not be able to carefully evaluate the goods or services they are thinking of purchasing. With no knowledge of what you are going to purchase, you will innocently end up buying a fake item. This has happened to many and it is still happening; take an example; you have budget of Rwf200,000 to spend on buying an original iPhone. To understand how asymmetric information about high or low quality goods is very important in this case.
Relevant information is always crucial whenever you plan to purchase any item. However, in certain areas and for some goods, consumers may not be able to carefully evaluate the goods or services they are thinking of purchasing.
With no knowledge of what you are going to purchase, you will innocently end up buying a fake item.
This has happened to many and it is still happening; take an example; you have budget of Rwf200,000 to spend on buying an original iPhone. To understand how asymmetric information about high or low quality goods is very important in this case.
It is reasonable to assume that consumers are able to judge the value of goods such as food, and other commodities. However, it is difficult for consumers to fully value some goods and services such as automobiles and electronics.
You will find similar products on the market but the quality is totally different. You will find two types of iPhones, where a seller will charge you lets say Rwf200,000 for the original phone but another seller will be willing to charge you half the price yet you cannot tell the difference between the two products because they look identical.
A consumer is always willing to pay less for any product but you end up getting cheated. After the purchase, numerous problems facing the item might not surface immediately after the purchase.
Solutions to fake goods
They are very many solutions to the problems but here are a few that I can share with you. Guarantees attract customers giving them assurance of higher quality goods and services, and in the case of receiving a faulty product, one can return the item or have it replaced.
Secondly, external product certification, where firms may attain external product certification so that consumers can rely on expert verification of the quality of their goods and services.
Finally, Consumer Protection Regulation which are common in many countries in the world. Consumer protection laws are designed to set a standard by which all firms must legally comply.
Bottom line, my dear friends, let’s not buy stuff we are not aware of. You can even ask a friend who knows better, you will be saved from the misery of buying a fake item and regret later.
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