Tag Archives: consumers

The Redefinition of Warranty

warrdrivessalesOriginally defined as a moral obligation, warranty has evolved into a powerful tool for enhancing the customer experience, which in turn drives sales.   Continue reading

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Even a critic sees value in vehicle service contracts

stranded motorists

A recent kiplinger.com post generally critical of vehicle service contracts (VSC) makes a pretty good case for buying one. Continue reading

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Putting the customer first drives sales … at least KIA Australia thinks so

Kia AU 777

Competition benefits consumers far more than so-called consumer protection laws and the red-tape they’re wrapped in. The former delivers better quality and service and a lower price, while the latter needlessly drives up costs on both sides of the transaction and keeps seedy lawyers in business. Want proof? Look at what Kia is doing in Australia, and why. Continue reading

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Groundhog Day: Another piece questioning the value of extended warranties

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The same article keeps popping up every other week or so in one publication or another. Its headline either asks if extended warranties are worth the cost or screams they are not. It gives the same advice – “buy smart” – and generally reaches the same conclusion on whether you should buy a service contract – “It depends”. See here, then here, here, herehere, and here.  Why is somebody always picking on extended warranties?

Here are 5 reasons why I think extended warranties make an easy target. Continue reading

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Consumer Reports to consumers: Choose risk or over peace of mind

boxing clip artIn a September 6 piece, Why you should avoid home warranties, Consumer Reports again takes a shot at service contracts. Noting a recent complaint filed by New Jersey regulators against Choice Home Warranty for allegedly making it difficult to obtain benefits, CR “recommend[s] avoiding service contracts” because those “that cover homes and cars, for example, can cost hundreds of dollars.” But what if the car or home costs many thousands of dollars? Isn’t spending a few hundred bucks on a service contract worth it to minimize risk and secure peace of mind? “No,” says CR, “it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.” Now it’s clear, just buy things that won’t malfunction or fail. Continue reading

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Are warranties withering? Will service contracts surge?

withered rose

Warranties are withering, claims an Arizona State marketing professor.  This, he says, bodes well for service contract industry profits, but not for consumers.

But in many product sectors warranty is expanding and recent studies show that consumers believe that service contracts deliver value. Continue reading

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GUEST POST: It’s Time to Stop Running from Recalls

GMHQ
GUEST BLOGGER: Jim Martinez, RightStoryGroup

On July 1, the New York Times carried a news analysis claiming that GM’s recent recalls threaten the company’s reputation. The same day, GM announced its best June sales figures since 2007.

Rising sales show that the biggest threat to GM’s corporate reputation isn’t recalls, but rather critics willing to irresponsibly forecast the company’s demise. Continue reading

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