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Consumer interpretations of warranty information : cue ambiguity and contextual meaning

Authors Price, Lydia J.
Dawar, Niraj
Issue Date 1996-08
Summary A general framework is proposed for understanding the effects of warranties on consumers' product evaluations. A key proposition of the model is that warranty is an ambiguous quality signal that is subject to contextual interpretation, especially with respect to available brand information. The model offers a common framework for interpreting previous empirical warranty research and shows how seemingly conflicting prior results can be reconciled. It leads to clear predictions about when and how warranties will affect consumers' perceptions of product reliability and functional performance, as well as their purchase intentions. Results of numerous prior warranty studies as well as three experiments reported here conform to the predictions derived from the proposed framework.
Language English
Format Working paper
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