Abstract
This conceptual paper reviews the literature from three distinct areas in consumer behavior: branding, warranty, and choice. In using a mixture of these three areas, propositions are developed which will be tested in future research. The impact of this study is geared towards understanding the behavior of consumers purchasing high cost items and the relative importance and trust that is placed in the warranty that comes with such a purchase. While the study will consider domestic (United States) consumers, international factors such as country of origin and psychic distance will be posed as viable factors in the decision making process. We propose that six factors will impact the role of branding in the decision making process and that a warranty will serve as a moderator to the ultimate choice decision.
Highlights
A common expression in business is that a warranty is only as good as the company’s reputation that stands behind it
Everyday consumers purchasing everyday goods probably don’t think much about warranties when making a grocery store or pharmacy run, but when it comes to large-scale purchases like automobiles, appliances, televisions, and other big ticket items, a warranty can become a make-or-break factor in the decision-making process
The main hypothesis of this paper proposes that warranty is a moderator of the branding effort and will play a significant role in the selection of a product
Summary
A common expression in business is that a warranty is only as good as the company’s reputation that stands behind it. The purpose of this research is to examine predictors of branding and the role of a warranty on purchase decisions. A literature review is conducted on branding, warranty, and choice theory. Propositions to be tested in a forthcoming empirical study will be posited throughout this literature review. A discussion of additional branding factors and their corresponding literature is examined, and further propositions are posited. These additional factors include reputation, national exposure, country of origin, emotional appeal, ease of product recall, and psychic distance. Some frameworks are proposed based on the theory developed throughout this conceptual paper.
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