The marketing manager for ABC Appliances is working on the warranty for the company's new line of dishwashers.She is considering a two-year total warranty based on costs,but the competition offers a four-year total warranty and a five-year mechanical warranty.She is worried that the shorter warranty she is planning will make customers think that ABC's dishwashers are inferior in quality.She should think about the _______ of the warranty.
A)Competitive advantage
B)Costs and benefits
C)Message
D)Product differentiation
E)Persuasiveness

Question

Quizplus · Accepted Answer

Warranties convey a powerful message to the customer about perceived product quality and manufacturer commitment to customer satisfaction. Particularly with expensive products or purchase decisions in which the customer has anxiety, the warranty can play a significant role in the final product choice. As a result, companies focus a lot of time not only creating the warranty but also considering how best to communicate it to the customer.

The Marketing Manager for ABC Appliances Is Working on the Warranty