Warranty Offer Timing

Warranty Offer Timing

Reviewed by Faisal Zaidi

The finding that consumers are more inclined to buy cover when it is offered before they commit to a product than after.

What it is

The authors link this to how consumers frame the purchase: before committing they think more about failures, after committing about positive features. It is drawn from work by Dongeun Kim and Dhananjay Nayakankuppam (2023).

In effect

In the article on why we buy extended warranties, it serves as the evidence that the moment of the offer matters.

What it does not say

The finding concerns when the offer is made. It does not say that cover is better value before or after a purchase, and the framing explanation is the authors' account.

Sources

  1. Kim, D., & Nayakankuppam, D. (2023). When to present an extended warranty: Pre- vs. post-purchasing a product. Psychology & Marketing, 40(9), 1821-1829.