The Protective Dimension of Product Warranty Policies and Practices |
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Authors: | EVAN E. ANDERSON |
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Abstract: | In consumer good markets, wide variations occur in warranty policies and practices between products, firms and industries. In this paper, those warranty policies designed to provide self-protection for the seller are examined. The protective facet of warranties carefully delimits the responsibility of the manufacturer for post-sale product performance and quality and hence stabilizes the firm's future costs and profits. The author has striven to conceptualize the association which may exist between a firm's products and markets and the policy objectives of its warranty. Several hypotheses concerning the conditions under which the warranty may be viewed by the seller as a tool of self-protection are suggested; these hypotheses are tested through an analysis of survey data collected from industry executives. |
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