信任品市场厂商策略性竞争分析-analysis on strategic competition of trust product market manufacturers.docxVIP

AbstractIn recent year product often occur quality problems and media consequently disclosed the problems. Product problem becomes to be a hot issue of the society concern. If we made a further research and we would find problem product have things in common which these products are called credence goods in economics. Credence goods is the kind of the goods which consumers don’t know its’ quality before they buy the goods or they have already used the goods. For example, milk powder and edible oil belong to credence oil. People usually think the survival of companies of the most important qualification rely on product quality with the aggravation of the market competition. Especially, when manufacturers have many strategic competition ways they should not sacrifice quality in order to obtain profit which we call short-term behavior. When the manufacturers adopt strategic competition they should put the product quality at the first place. But why did they occur quality problem again and again such as milk powder? These credence goods which occur quality problem often are famous and big brand in China. In this background, we research quality problem which occur in recent years that is great significance.Consumers often have the confidence which is expensive and of high quality since consumers don’t evaluate the product quality. That is to say high price was the worth high quality. At the same time consumers frequently obtain product information through advertising. Consumers have strong confidence to these credence goods which spent a large amount money on advertisements. Thus this paper grasps this feature which manufacturers in credence goods market usually use price and advertisement as quality signal to convey quality information. This paper founds “credence goods price–advertisements signaling model. Through parameters setting the paper analyzed equilibrium state when credence goods manufacturers convey information of product quality through price and a