Warranty (Goods) - Explained
What is a Warranty?
Written by Jason Gordon
Updated at September 28th, 2021
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What is a Warranty?
A warranty is an assurance or guarantee that a manufacturer or a seller of a product would repair or change the product purchased by a buyer if it breaks or malfunctions during the warranty period. Here are the key points to note about warranties:
- Terms of warranties vary from company to company.
- There are often limits or criteria that must be followed before a warranty can be claimed.
- There are some reasons that can cause a warranty to be denied, (such as misuse of product, alterations, and modifications parts of the product).
Back to: OPERATIONS, LOGISTICS, & SUPPLY CHAIN MANAGEMENT
Related Topics
- What is a Product?
- What Types of Product are There?
- Durable Goods
- How are Goods Different from Services?
- What Components do Products Include?
- What is Product Quality?
- Perceived Value of a Product
- Why is Product Packaging Important?
- White Label Product
- What is Product Warranty?
- Innovation Adoption Curve
- Product Life Cycle
Academic Research on Warranty
- A theory of the consumer product warranty, Priest, G. L. (1980). A theory of the consumer product warranty. Yale LJ, 90, 1297.
- Warranty and other extrinsic cue effects on consumers' risk perceptions, Shimp, T. A., & Bearden, W. O. (1982). Warranty and other extrinsic cue effects on consumers' risk perceptions. Journal of Consumer research, 9(1), 38-46.
- New product warranty: A literature review, Murthy, D. N. P., & Djamaludin, I. (2002). New product warranty: A literature review. International Journal of Production Economics, 79(3), 231-260.
- Product warranty managementI: A taxonomy for warranty policies, Blischke, W. R., & Murthy, D. N. P. (1992). Product warranty managementI: A taxonomy for warranty policies. European journal of operational research, 62(2), 127-148.
- The implied warranty of merchantable quality, Prosser, W. L. (1943). The implied warranty of merchantable quality. Can. B. Rev., 21, 446.
- Determination of warranty reserves, Menke, W. W. (1969). Determination of warranty reserves. Management Science, 15(10), B-542. [PDF]
- Warranty cost analysis for second-hand products, Chattopadhyay, G. N., & Murthy, D. N. P. (2000). Warranty cost analysis for second-hand products. Mathematical and Computer Modelling, 31(10-12), 81-88.
- Optimal reliability, warranty and price for new products, Huang, H. Z., Liu, Z. J., & Murthy, D. N. P. (2007). Optimal reliability, warranty and price for new products. Iie Transactions, 39(8), 819-827.
- Methods for the analysis and prediction of warranty claims, Kalbfleisch, J. D., Lawless, J. F., & Robinson, J. A. (1991). Methods for the analysis and prediction of warranty claims. Technometrics, 33(3), 273-285.
- Unmasking the Test for Design Defect: From Negligence [to Warranty] to Strict Liability to Negligence, Birnbaum, S. L. (1980). Unmasking the Test for Design Defect: From Negligence [to Warranty] to Strict Liability to Negligence. Vand. L. Rev., 33, 593.
