The Woes of Extended Warranties

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The Woes of Extended Warranties

An extended warranty may be purchased at the time you buy your

electronic device or appliance; it may also be possible to purchase

one much further along in your ownership experience. If you're the

type who likes to be prepared for all eventualities, an extended

warranty may be just what you're looking for. Bearing in mind the

ever-increasing cost of electronics repairs, these contracts can make

a lot of sense.

The purpose of this paper is to delve into consumers' viewpoints on

extended warranties. The topic will be further analyzed by studying

the extended warranties offered by Future Shop and RadioShack. Then, a

few consumer interviews will be presented detailing their previous

experiences with extended warranties from the two stores. Lastly, the

paper will conclude with a brief discussion on the validity of

extended warranties.

Definition of an Extended Warranty

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An extended warranty is a contract purchased to protect the consumer

goods against the unexpected costs of breakdown, for a specific period

of time. The time can range from period of 2 to 4 years. This normally

begins after manufacturers guarantee. These are usually bought

directly from the retailer and sometime offer coverage for theft and

accidental damage.

Background Information on Future Shop

Established in 1982, Future Shop's first store was located in

Vancouver, British Columbia and showcased 4,000 square feet of the

latest consumer electronic products. During in the late 1980s, Future

Shop followed an aggressive growth strategy, quickly expanding

operations in provin...

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don't protect against negligence; if your child shoves a sandwich in

the VCR, you're out of luck." (Sorgen, 2001)

References

Guaranteed rip-off; David Menzies; Canadian Business, Toronto; Apr 16,

2001; Vol. 74, Iss. 7; pg. 66, 1 pgs

Extended warranty? Wise up!; Caroline Sorgen; Good Housekeeping, New

York; Jul 2001; Vol. 233, Iss. 1; pg. 188, 1 pgs

Interview with Customer Service Representative at Future Shop,

Windsor, ON. Nov, 2002.

Interview with Customer Care Associate at 1-800-The-Shack, RadioShack

Hotline, Nov. 2002

Interview with Future Shop Customer, Anonymous, Windsor, ON, Nov. 2002

Interview with RadioShack Customer, Becky, Windsor, ON, Nov. 2002

Interview with RadioShack Customer, Chris, Windsor, ON, Nov. 2002

Interview with Future Shop Customer, Tyson, Windsor, ON, Nov. 2002

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