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Abstract Several explanations of the purpose for consumer product warranties can be found in the marketing liteature. However, comparatively little research has been done to develop and test a theory of the consumer product warranty. Recently the Market Signal Theory which posits that warranties serve as signals of product reliability, has emerged in the economic, legal, and marketing literature. In this article, a test of the Market Signal Theory is conducted usign pre- and post-Magnuson-Moss Act warranties. Marketing and public policy implications of the Market Signal Theory and directions for future research are also discussed.
Journal of the Academy of Marketing Science – Springer Journals
Published: Jun 1, 1988
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