Recent research shows that the amount of a guarantee payout has no effect on consumer cheating. Which of the following is one of the important managerial implications of this?
A)Guarantees can be restricted to new customers because of the propensity for repeat customers to cheat.
B)Guarantees can be kept low to prevent rewarding cheaters.
C)Managers can reap the marketing rewards of higher guarantees without increased payouts due to consumer cheating.
D)Managers cannot expect to recover the difference in guarantees for different types of consumers.
E)Guarantee levels can be used to dissuade consumer cheating.

Question

Quizplus · Accepted Answer

The research shows that the amount of guarantee payout has no effect on consumer cheating, implying that higher guarantees do not lead to increased cheating. Therefore, managers can use higher guarantee levels for marketing purposes without worrying about increased payouts due to cheating.

Recent Research Shows That the Amount of a Guarantee Payout