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A Comparison of Buyers and Nonbuyers of Extended Service Contracts
Abstract:ABSTRACT

Only a few empirical research studies about extended service contracts have appeared in the services marketing literature. This study used Chi Square analysis as a methodology to distinguish between buyers and non-buyers of extended service contracts. The findings suggest that while buyers and non-buyers were very similar demographically and psychographically, there were considerable differences in motivation for purchasing or not buying. Of the ten motivation variables, eight were significant at or beyond p < 0.05. Moreover, some ethical implications for professional salespeople marketing these service contracts were discussed.
Keywords:Extended service contracts  extended warranties  ethics  service buying motivations
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