There are three classifications of goods based on
the consumer’s ability to determine quality. These
are
(1) search goods,
(2) experience goods,
and (3) credence goods (Nelson 1970; Darby and Karni
1973).
Caswell and Mojduszka (1996) applied
these classifications to food products in their
analysis of informational labeling of food product
quality attributes. In the case of search goods, there
is perfect information about quality before purchase.
Parsley is an example of a search good because
it is valued as a garnish based on its fresh
appearance. With experience goods, quality can
only be determined after the product has been consumed,
An example of an experience good is
canned food. Quality in a credence good cannot be
directly observed (or it is observed too slowly or
too late to matter or it is prohibitively costly to be
observed) by consumers even after consumption.
Examples of credence goods are organic foods,
dolphin-safe tuna, free-range meat, and kosher
foods.