Warranty of Misinforming
A critical ingredient for a successful operation of indirect commerce is a high level of trust between the seller and the buyer. Information asymmetry, as a natural property of any communication process, may result in misunderstanding between the seller and the buyer and erode the trust between them. From customers’ point of view, lacking adequate knowledge on the features of the product may result in a wrong purchase decision and lead to serious financial and emotional drawback. From seller’s point of view, a wrong purchase decision may result in customer’s dissatisfaction and harm its reputation in the market place. Often, customers do not have a clear idea about the product they are buying and the seller doesn’t know why the customers are buying the product. This could be a reason for misunderstanding between them. Reducing information asymmetry, as well as being able to measure and share the risk of misinforming (covered by the warranty of misinforming), will be beneficial to both parties.
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