Towards Dimensionalizing Warranty Information: The Role of Consumer Costs of Warranty Redemption

Firms routinely offer warranties, often as attempts to differentiate their offerings from those of competitors. Despite this practice common to virtually every consumer durable category, extant research has been inconclusive regarding the effect of warranties on quality judgments. One potential limitation of these prior investigations is the failure to model a key element of a product warranty—consumer‐side transaction costs associated with...