In the manufacturing industry, has long known product warranty. This is a guarantee or warranty that is given by the company to customers, which they will get a good product or if there is a defect, they will get instead or repair services.
Warranty especially in the areas of service, clearly has a value in the eyes of customers. In electronic markets such as televisions, refrigerators, DVD or cell phone, there are two types of products. The first is the product warranty and the second is the product that there is no guarantee. Understandably, there is no guarantee that the products are often imported by authorized dealer or not.
How many different prices? Approximately 5-10%. Some customers dare to choose a product without a warranty but the majority tend to choose the warranty. Products such as televisions can be said to have failed product compared 1 to 10,000 for world-class brands. Not surprisingly, some dare to buy a product without a warranty even if the price difference is only 2-5%.
For products that are still often failed like mobile phones, most still choose the warranty. Even if not under warranty, the price difference should be large. The value to be paid by customers for product warranty shows the magnitude of the value of a warranty.
So, the warranty can cover a lot of things. There are companies that guarantee the quality of its products. There are companies that guarantee in terms of price. There is also a guarantee in terms of delivery time and the various aspects of other services.
Warranty is a program that is often effective in increasing customer satisfaction. Customers feel calm that there is assurance, and trust in the company will also rise. Only, the ability to improve customer satisfaction differs somewhat between manufacturing and service products. For products, the warranty is generally quite usual and therefore, the program merely guarantees so as not left behind by competitors. For service, warranty can be a competitive tool in creating effective customer satisfaction.
Service relies heavily on human factors much more difficult standardized. Not surprisingly, service companies, it can be said often lose the courage to give warranty. Who can guarantee that employees will provide services such as the guaranty? That’s what they think.
Companies that want to be world class in customer satisfaction will use the warranty as a way to raise expectations. As such, they expect that competitors will not be able to match.
Only, as has been widely discussed before, that with high customer expectations, then the company must work hard to deliver as promised. If it fails, then the impact would be great. Very likely, the dissatisfaction that arises because of the warranty, will lead to customers switch to competing brands. And more so, dissatisfaction because of the failure warranty, will long stored in the minds and hearts of the respondents. So it’s not easy to snag them into customers in the future.
The fact it shows that not all warranty programs proves successful.