Signaling
 

Customers are often willing to pay higher prices for high-quality products; however, without specialized knowledge, it can be difficult to evaluate whether certain items are high quality. When customers are unsure whether an item is high quality, and worth the price, they are less likely to purchase it. This problem can be resolved through signaling. The seller of a product finds a way to signal, or demonstrate, to the buyer that the product is high quality. One common signaling strategy is to have a person or company that is not involved in the sale provide an objective, unbiased judgment about the quality of a product.