Behind every product is a series of supporting services, such as warranties and money-back guarantees. In many instances, such services may be as important as the product itself. In fact, at times it is difficult to separate the associated services from the product features.
Companies must constantly monitor the services offered by the company and its competitors. Based on the results of data-gathering devices such as customer surveys, consumer complaints, and suggestion boxes, the product manager can determine the types of services to offer, the form the service will take, and the price charged. For example, consumers are very reluctant to purchase a stereo that can be serviced only by sending it to the factory, and paying the postage and a high service fee. Maytag, however, has been very effective in selling their appliances with service contracts and local repair. Although there are a wide range of supportive services, the following are most prevalent:
Warranty: Warranties are used to mitigate the risks of a malfunctioning product or the risk of making a wrong purchase decision regarding misinformation about a product. There are several types of durable products, retail stores, and even service products for which warranties are expected. These warranties can provide a wide array of restitution, with a very limited warranty at one end of the continuum and extended warranties at the other. An example of the former is a VCR manufacturer that provides a 30-day warranty on the motor drive and no other coverage. The Craftsman tools division of Sears Roebuck reflects the other extreme. A broken shovel will be replaced, no questions asked, after a full summer of use. A good jewelry store has a warranty backing up every diamond ring it sells. A warranty is violated when products do not perform as expected (are defective) at the time the sale occurs. In this case, sellers should honor the warranty by offering a refund or a replacement.
Money-back guarantee: The ultimate warranty is the money-back guarantee, also know as a "satisfaction guarantee. " Essentially, it is a simple guarantee that if a buyer is not satisfied with a product or service, a refund will be made. To the customer, a money-back guarantee reduces risk almost totally. There are certain market segments (e.g., low risk takers) that perceive this service as very important. This service is effective only if the product is superior and the product will be returned by only a few people. In some case, companies will try to get out of money-back guarantees. There are many ways a customer can take action to pressure a company to stick to its advertised guarantee. The first should always involve contacting the company by means that are recorded, in order to maintain a thorough record of all communications regarding the guarantee. If the company still fails to follow through with its guarantee, the buyer may contact his or her state's attorney general, the seller's state attorney general, the Better Business Bureau, or the Federal Trade Commission (FTC).
AppleCare Warranty
AppleCare covers both global parts and labor repair coverage for the device, along with phone/Internet technical support for questions about Apple hardware and software.