If you have been through the custom production settings in Camtasia Studio, you have probably come across this and wondered what it really meant for your video:

I wondered the same thing, so I went straight to Camtasia Studio Lead Developer, Dave O’Rourke. He broke it down like this:
The Quality-based encoding mode allows you to leave the default at 50% and you should be fine for all video dimensions. The defaults we’ve chosen (at 50% quality) are what we felt was the lowest we could go without noticing a drop in quality. This is subjective. So if users want a higher quality, they can adjust up. If they want to try for a smaller file, they can adjust down.
Seems simple enough, but he also went on to note that using the ‘Quality’ encoding mode will produce a Variable Bit Rate video file. OK Dave, next round of explaining:
VBR should produce a smaller file with better quality, as compared to (its counterpart) Constant Bit Rate. The difference is that VBR allows the bitrate to vary over time, as needed, using more/less bits when the content is more/less complex. By contrast, CBR is more of a one-size-fits-all kind of solution.
Still mixed up? Want to know how to produce a CBR instead? I attempt to explain things further in this short video walk-through:
Can’t see the video? Watch it on YouTube!