The rapid globalization of production and the shift in manufacturing and distribution systems has created a new need for consumer protection. The internet and mobile telephones have revolutionized the way the business is conducted. The increased usage of the internet has had a great impact on developed and developing countries. Nearly all countries are experiencing a high demand of e-commerce activities. This new phenomenon has led to the disparity of knowledge between traders and consumers. The advancement of technology has placed at the disposal of consumers a range of complex and sophisticated products, consumable and non-consumable. To protect consumers against faulty products requires the design of new measures.
Rapid expansion of developing economies has led to the inclusion of millions of new consumers in the global market. While this is of great benefit to the standard of living of those consumers, the levels of protection they receive from consumers’ law and good business practices is much lower than that received by consumers in the developed world.
A warranty is a written agreement that assures the customer that the manufacturer/seller will repair or replace the product if necessary within a specified time frame. There are a number of different types of warranty and companies can create their own guidelines, but they are important because they make the purchase of any high-value item a lot safer for consumers. In addition to this, it allows a business to outline the terms and situations where they both will and will not cover the cost of repairs or replacements.
One of the most important ways that a warranty helps a business is that it can be used to build trust between customers and them. Buying a high-value item is a major decision and can be a risk for a consumer, so they will feel a lot safer if they know that there is a warranty in place. Most people have had experiences where they have bought a product that was faulty out of the box or developed an issue very quickly, which can be frustrating and costly if there is no warranty in place. By offering a warranty, you can make the consumer feel a lot safer in making the purchase because they know that they can trust your business to cover the cost of repairs or a replacement if the product does not work.