The central mechanism is reputation, the general opinion of whether one's promises of quality and safety are trustworthy. Producers build reputation by a variety of means. Firms seek repeat dealings so that satisfied customers gain confidence and return for more purchases. If the producer were to cheat customers, he would lose future purchases not only by that customer but also by others informed of the dissatisfying experience. Firms develop an array of services brought under the umbrella of brand names, logos, and trademarks, using their reputation to assure quality and safety.
Retailers build bridges of trust by becoming regular dealers between producers and consumers.
Rite Aid and Safeway have a continuing relationship with pharmaceutical suppliers on one side and consumers on the other. Buying from a trusted middleman, like Safeway, assures the customer of quality and safety in goods from a supplier once removed. By serving as a middleman, Safeway makes the consumer's relationship with the ultimate manufacturer like the relationship we have with the friend of a friend. Firms also seek seals of approval awarded by various organizations that evaluate quality and safety. Classic examples include Underwriters Laboratories, Moody's, AAA, and the Orthodox Union.