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
==================================
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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