The psychology of warranties - economist.com:
"If extended guarantees are overpriced, why are they so popular? - CUSTOMERS tend to agonise over the relative merits of different models of electronic goods such as digital cameras or plasma televisions. But when they get to the till, many spend freely on something they barely think about at all: an extended warranty, which is often more profitable to the retailer than the device it covers."
"If extended guarantees are overpriced, why are they so popular? - CUSTOMERS tend to agonise over the relative merits of different models of electronic goods such as digital cameras or plasma televisions. But when they get to the till, many spend freely on something they barely think about at all: an extended warranty, which is often more profitable to the retailer than the device it covers."
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