The Product Warranty as an Element of Competitive Strategy

New Product Warranty: Empirical Evidence from Polish and Slovenian Furniture Industry

“…This is confi rmed by the results of research conducted e.g. by Udell and Anderson (1968), which indicated that the effectiveness of the use of warranty in marketing is best when a given product is purchased rarely or it seems complicated to the consumers. Information on the length of the warranty period is included much less frequently in advertising materials of companies producing e.g.…”

“…Such an approach should be adopted particularly in the case of durable goods such as e.g. furniture (Udell and Anderson, 1968;Wiener, 1985) or automotive industry (Majeske et al, 1997;Zhoua et al, 2012). Increased interest in issues of reliability, quality and warranty can be observed in the furniture industry (Ratnasingam et al, 1997;Gremyr et al, 2003;Smardzewski, 2005Smardzewski, , 2009; Kłos and Fabisiak, 2010).…”

“…Reliability is an essential feature determining the commercial success of a product and it is a signifi cant element in the competitive strategy of the enterprise (Sander and Brombacher, 2000;Murthy and Djamaludin, 2002;Murthy, 2006;Murthy, 2007;Fabisiak, 2013a, 2013b;Ojurović et al, 2013). It is of importance both for furniture producers (Vickery et al, 1997) and consumers (Udell and Anderson, 1968;Sinclair and Hansen, 1993;Pakarinen and Asikainen, 2001; Ratnasingam, 2003;Chien et al, 2005;Knauf, 2015). Numerous authors point out that quality is particularly demanded on wood products market (Schubert, 1979; Kozak and Maness, 2003).…”

Warranty Economic Decision Models: A Summary and Some Suggested Directions for Future Research

“…The concept of a warranty being an important strategic element has come to the forefront because of both promotional and protectional needs (Anderson 1973, Udell andAnderson 1968). A warranty agreement usually includes the following speciÿcations:…”

“…For example, product performance is important, even after the warranty expires, because of its e ect on the manufacturer's reputation, product evaluation for future purchases by consumers, employee motivation, and quality improvement throughout the design, manufacturing, and administrative areas. Several papers have dealt with the quantiÿcation of warranties for basic accountability (Heck 1963, Fisk 1970, Brown 1974, marketing strategy (Dorfman and Steiner 1954, Udell and Anderson 1968, Glickman and Berger 1976, and the determination of reserve funds to cover expenditures for warranty claims (Lowerre 1968, Menke 1969, Amato and Anderson 1976. The rapidly developing and changing high technology throughout the 1970s further accelerated the need for research focus on even higher quality product development, which today further includes an emphasis on customer satisfaction.…”