A review for customized extended warranty policies

Abstract

Due to the fierce competition globally, standardized product and service are difficult to meet customized demand. Thus, providing personalized products and customized service have become more and more popular for the manufacturers in order to establish their competitive advantage and win customers. As an effective marketing tool, basic warranty has been sold with the products for many years, and in recent years extended warranty is becoming a competitive and profitable means for marketing. Nowadays the study on basic warranty is relatively mature, while customized extended warranty (CEW) is still in its development. In this study, the concept and its classification of warranty is introduced briefly, the status quo of extended warranty is analyzed, and the emphasis is on CEW. Existing CEW references are classified, their applications and limitations are also analyzed. Finally, some future research directions of CEW are proposed.