R8 — Name the credence-good problem explicitly with prospects; propose liability + verifiability structures rather than projecting unwarranted confidence
Rule: Be explicit with prospects about the credence-good problem, not coy. Name it in sales conversations. Propose the liability and verifiability structures (clear scope, documented milestones, transparent metrics, third-party-auditable references) that mitigate it.
Why: The instinct of a marketing agency is to project confidence and remove perceived uncertainty. The sophisticated trades buyer is already aware that marketing services are a credence good ([[marketing-services-as-credence-good-for-gc]]); pretending otherwise reads as either naivety or dishonesty. The Dulleck-Kerschbamer-Sutter 2011 finding ([[dulleck-kerschbamer-sutter-2011-liability-verifiability-credence-goods]]) is that liability is what produces market efficiency; offering liability is the highest-trust posture a vendor can take.
How to apply:
- In sales conversations, name the credence-good problem: "Marketing services are hard to evaluate from outside — you can't tell whether what you bought was good marketing or just a good-looking website. Here's how we structure to address that."
- Concrete liability structures Candid can offer: milestone billing tied to inspectable deliverables; references prospects can call without notice; written scope with named-deliverable check-ins; the kill criteria from
[[rule-engineer-explicit-kill-criteria-into-engagements]]; published audited-reputation methodology from[[rule-build-candid-audited-reputation-infrastructure]]. - Acknowledging the problem is itself competence-attribution signal (Brief #2:
[[kim-ferrin-cooper-dirks-2004-competence-vs-integrity-trust-repair]]— competence-violation framings repair via apology-shaped acknowledgment).
Cross-cluster: This is the explicit operationalization of Brief #1's [[rule-concede-credence-good-problem-make-marketing-inspectable]] at the sales-conversation level.
Depends on
- reference Dulleck, Kerschbamer, Sutter 2011 (AER) — credence-goods lab experiment; "liability has crucial effect, verifiability minor, reputation little influence"
- reference Marketing services are a near-paradigmatic credence good for a GC buyer
- reference Kim, Ferrin, Cooper, Dirks 2004 (JAP) — competence violations repair via apology; integrity violations repair via denial; opposite mechanisms