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DOI:http://dx.doi.org/10.26855/jhass.2021.07.012

The Internal Relation between Credence Goods, Consumer Perceived Value and Enterprise Performance

Date: December 16,2021 |Hits: 1839 Download PDF How to cite this paper

Fuyong Lu1, Xintao Wang2,*

1Academy of China Open Economy Studies, University of International Business and Economics, Beijing 100105, China.

2School of Business, Renmin University of China, No. 59, Zhongguancun Street, Haidian District, Beijing 100872, China.

*Corresponding author: Xintao Wang

Abstract

At present, there is significant information asymmetry in the credence goods market, which causes difficulties in market supervision, consumers’ choice and enterprises’ reverse elimination. The release of credence goods signals enhances the perceived value of consumers, thus increasing the propensity to consume and further improving enterprise performance. This paper takes tea, a typical trusted product, as the empirical research object, and collects a wide range of data samples to study how consumers who lack effective information perceive the mapping value of credence goods and how it affects the business performance of enterprises. The results show that credence goods improve enterprise performance through social value, functional value, investment value and service value, which affect consumers’ attention. From the empirical level, this paper reveals that the commodity attribute of credence goods determines the degree of market information asymmetry to a certain extent, and the business performance of enterprises is inseparable from the effective transmission of information under the guidance of market price mechanism. The research further puts forward some suggestions and inspirations for enterprises’ product development in information asymmetric market.

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How to cite this paper

The Internal Relation between Credence Goods, Consumer Perceived Value and Enterprise Performance

How to cite this paper: Fuyong Lu, Xintao Wang. (2021) The Internal Relation between Credence Goods, Consumer Perceived Value and Enterprise Performance. Journal of Humanities, Arts and Social Science5(2), 275-280.

DOI: http://dx.doi.org/10.26855/jhass.2021.07.012

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