Question

Categorize each of the following as an experience good, a search good, or a credence good or service, and justify your answer.

a. A heavy-duty filing cabinet

b. A restaurant meal

c. A wool overcoat

d. Psychotherapy

Short answer

(a) The description is sufficient for evaluating the cabinet's features. As a result, a heavy-duty filing cabinet comes in handy while searching.

(b) The quality of a meal can be determined by tasting it. As a result, dining out is a pleasurable experience.

(c) Wool coats are a good choice because customers can compare features such as coat size and color before buying online.

(d) For consumers who lack expertise, evaluating the psychotherapy product without assistance is difficult. As a result, it is correct.

Step-by-step solution

Step 1:Given data

A heavy-duty filing system classifies and justifies each of the following as a positive experience, a search good, or a credibility good or service.

Introduction

When the qualities of a good are relatively easy to assess prior to purchase, the device is known as a "search better." When a company is selling an experience, persuasive advertising is more likely to be used. Consumers purchase goods online. Credence goods advertising can be easily evaluated prior to consumption. (a): The description is sufficient for evaluating the cabinet's features. As a result, a heavy-duty filing cabinet is useful for searching.

 A heavy-duty filing (part a)

(a): The description is sufficient to evaluate the cabinet's features. As a result, a heavy-duty filing cabinet is there once searched for.

Step 4:Given data

A restaurant meal classify and justify each of the following as an experience good, a search good, or a credence good or service.

Step 5:The quality of a meal  (part b)

b) The quality of a meal can be determined by tasting it. As a result, eating at a restaurant is a pleasant experience (c)A wool coat is a search good because consumers can compare features such as coat size and color before purchasing.

Step 6:Given data

A wool overcoat classify and justify each of the following as an experience good, a search good, or a credence good or service.

consumers can compare features (part c)

(c) Wool coats are a good choice because customers can compare features such as coat size and color before buying online.

Step 8:Given data

Psychotherapy is classify and justify each of the following as an experience good, a search good, or a credence good or service

The Psychotherapy (part d)

(d) It is difficult for consumers who lack expertise to evaluate the psychotherapy product without assistance. As a result, it is credible.