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This study considers the impact of warranty agreement during the process of a new product adoption, mainly its impact on the risk of misinforming, which naturally arises during this process. It addresses the risk of misinforming in the following two phases of the product adoption - acquiring and utilization of the product. In the first phase the warranty of misinforming acts as a promotional tool, while in the second phase it serves mostly as a risk sharing mechanism. The paper investigates the role of warranty of misinforming in an "ideal" case, when the consumer optimizes the purchase decision led by rational assessment of his needs, product's price and some supplementary costs.

The Role of Warranty of Misinforming for New Product Adoption