Consumer Responses to the Timing of Product Breakdowns in the Presence of Manufacturers' Warranties

Abstract

Two experiments explored how timing of product failure in relation to warranty coverage influences consumers' affective reactions to product breakdowns. Subjects read scenarios describing a product needing repairs and the warranty coverage on the product. The timing of product failure and the presence and/or absence of warranty coverage influenced consumers' affective reactions to product breakdown. Affective reactions were much more negative when the consumer just missed the warranty as compared to conditions where the product breakdown was within warranty coverage or some time after warranty expiration. Timing also influenced expectancies, such that just missing warranty coverage led to more pessimistic predictions for future product performance. Purchase intentions are also reduced by just missing the warranty. The results also support our hypothesis that consumers' affective reactions mediate the effect of product failure timing on their repeat purchase intentions.