Product warranty can be influenced by several factors. In this research, we offer a non-intuitive prediction that brand name itself can influence preference for warranties. The signaling research on branding will suggest that famous brand names will be considered surrogates for quality, and therefore the need and preference for warranties for these brands will not be greater than those for the less famous brands. Based on behavioral decision theory concept, we predict that the famous brands will command greater warranty preference. In four experiments, we demonstrate this phenomenon and test the preliminary processes.
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