Many disputes between buyers and sellers concern product quality and whether a claim of poor product performance is covered by a warranty issued by the seller. We develop an analytical framework in which average product quality, buyer preferences, production and transaction costs, and the extent to which "true" quality can be observed by buyer and seller interact to determine warranties, produc...

Demand for high software reliability requires rigorous testing followed by requirement of robust modeling techniques for software quality prediction. On one side, firms have to steadily manage the reliability by testing it vigorously, the optimal release time determination is their biggest concern. In past many models have been developed and much research has been devoted towards assessment of ...

This research examines a temporal factor's influence—showing an extended warranty before versus after consumers purchase product—on consumers' likelihood of purchasing the warranties. Our results show that are more likely to committing product rather than doing so. These appear result from differing mental construals. Before purchase, construals conditioned on failures accessible; accordingly, ...

When product quality is unobservable to consumers, a manufacturer can convey the quality information using signals such as warranty and brand reputation. The purpose of this paper is to study the interactions between warranty, brand reputation, and product quality, and to examine the quality signaling strategies. We model a monopolist who tries to convey unobservable product quality to heteroge...

Nowadays the product warranty plays increasingly important role in any business transaction. It is a valuable attribute of the product and it is used extensively in marketing and advertising. It is a tool to enforce the competing power of the producer on the market place. There is a vast literature on the product warranty related to the product malfunctioning. In this study we address another t...

Nowadays the product warranty is considered to be a valuable attribute of the product. It is a tool to enforce the competing power of the producer on the market place. There are two types of problems the product warranty addresses. Firstly, warranty deals with the malfunctioning of the product and, secondly, it addresses the information asymmetry, i.e., the misunderstanding and misinterpretatio...