Analysis shows product quality affects customer trust and purchasing decisions in the market, highlighting risk of counterfeit goods.
Much of the previous literature on online purchasing agents has shown that product quality is often not guaranteed, with a significant proportion of goods being counterfeit or in poor condition. Customers who are unaware of this risk tend to trust the purchasing agents and subsequently suffer a loss in utility. This study explores the relationship between the quality of products sold by purchasing agents and their sales performance. The methodology employed involves extensive games, with two key assumptions regarding customer types. The conclusions are as follows: In the market, when the proportion of high-quality goods is high, customers are likely to trust and purchase these goods. Conversely, when the proportion of low-quality goods is high, customers will inevitably end up buying low-quality goods if those dominate the market. However, if high-quality goods are available, the likelihood of customers purchasing them is influenced by the relative cost of the low-quality goods.
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Liu et al. (2025) studied this question.
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