PROVIDING AN EXTENDED WARRANTY WITH AN ONLINE TRANSACTION: THE MODEL THAT WILL IMPROVE CONSUMER CONFIDENCE

摘要

As each generation becomes more computer savvy, the rise of Internet shopping will only increase. Nonetheless, every retailer on the Internet suffers from one major obstacle in comparison to the traditional shopping environment. How does the online retailer overcome the consumer concern about the quality of a product that he or she cannot touch, feel, or see prior to purchase? Perhaps extended warranties, now so commonly offered to the purchaser in the traditional shopping environment, present an opportunity for the Internet seller to overcome this problem and provide the level of certainty so demanded in a setting in which the global financial crisis has reduced consumer confidence to an all time low. This article examines the use of extended warranties and articulates how they may be used to promote sales in the online market.