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What is a credence good, and why does it change everything

What is a credence good, and why does it change everything?

The founder as a trust proxy

Check: what makes it credence

Correlated risk, and why it surprises people

Why does verification capability get underfunded?

Check: which signal is credible?

Was it the founder, or was it the category

Was it the founder, or was it the category?

Worked Example: running the exposure assessment

Check: the cost of one brand

Expert Depth: signalling, and what makes a signal credible

Expert Depth: what disclosure regimes actually do to strategy

Check: why substantiation starves

Practice: assess a brand you can observe

Check: what changed just before?

Uses The Honest Company to examine brands built on claims customers cannot verify. Teaches how to assess exposure by separating unverifiable claims from verifiable ones, mapping how correlated the risks are across a product line, and judging whether verification capability matches what the firm asserts.

Take a brand built on a claim customers cannot check, and assess how exposed it is, by identifying which claims are unverifiable, working out how correlated the brand's risks are across its product line, and judging whether the firm has built verification capability proportional to what it is asserting.

When Trust Is the Product

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