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Extended Warranties: Consumer and Manufacturer Perceptions
Author(s) -
KELLEY CRAIG A.,
CONANT JEFFREY S.
Publication year - 1991
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.1745-6606.1991.tb00281.x
Subject(s) - revenue , business , marketing , perception , consumer behaviour , finance , neuroscience , biology
Extended warranties are becoming increasingly popular, both among consumers and manufacturers. In this study, consumer and manufacturer perceptions of why extended warranties are bought and sold are evaluated and compared. The results indicate that consumers seem to view extended warranties as a way of reducing perceived risk. Manufacturers reveal that they market extended warranties both to generate revenue and to provide service to customers. Marketing management and public policy implications are examined and research directions identified.