Michael Armstrong, an associate professor of operations research in Brock’s Goodman School of Business, wrote a piece recently published in the Montreal Gazette about effective branding of cannabis products.
Armstrong writes:
Ontario introduced a bill last week governing sales of recreational cannabis. Meanwhile, the House of Commons is proceeding with its legalization legislation. As both governments finalize the details, they must ensure they allow cannabis producers to effectively brand their products.
Customers can easily evaluate many products before purchase. Before buying shirts, I can see colour, feel texture and test fit. In product-design terms, those are “search” features. I judge their quality while searching for shirts to buy.
By contrast, cannabis primarily has “experience” features. These include its high and side effects. Consumers evaluate them only through use.
Cannabis also has “credence” features consumers can’t evaluate at all. Some are desirable, such as tetrahydrocannabinol (THC) and cannabidiol (CBD) content. Others are hazardous, such as pesticide contamination. For those, buyers rely on sellers’ claims.
To prevent those unseen factors from harming consumers, government regulation is appropriate. This includes standards for allowable pesticides, and rules about testing frequency.
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