The marketing manager for ABC Appliances is working on the warranty for their new line of dishwashers.She is considering a 2-year total warranty based on costs, but the competition offers a 4-year total warranty and a 5-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

The manager should consider the message that the warranty sends to customers. If ABC Appliances only offers a 2-year warranty while the competition offers a 4-year total warranty and a 5-year mechanical warranty, customers might perceive that ABC's dishwashers are of lower quality. Therefore, the manager should carefully consider the message that the warranty sends to customers.

The Marketing Manager for ABC Appliances Is Working on the Warranty