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The Protective Dimension of Product Warranty Policies and Practices
Author(s) -
ANDERSON EVAN E.
Publication year - 1973
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1973.tb00527.x
Subject(s) - warranty , product (mathematics) , business , dimension (graph theory) , quality (philosophy) , marketing , industrial organization , philosophy , geometry , mathematics , epistemology , political science , pure mathematics , law
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.