Warranty, product spectrum and customer role

Abstract

This paper examines the meaning, scope and implementation of warranty for a variety of products and services. Some of the issues considered are: types of warranty, the length and limitations; relation to quality and price; competition and customer; impact of service contract; system versus component; warranty breakdown and product recall. Warranty is explored with reference to some personal examples. Warranty can be a powerful incentive in selling a product and a long warranty provides an opportunity to woo the customer and gradually expand the company's product base. Recalled products-even if outside the warranty period-are required to be addressed and how a recall is handled can make or break a company. It is suggested that product recall be factored into the product launch as a risk factor with impact on life cycle cost.