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The study aims to design the limited number of random working cycle as a warranty term and propose two types of warranties, which can help manufacturers to ensure the product reliability during the warranty period. By extending the proposed warranty to the consumer's post-warranty maintenance model, besides the authors investigate two kinds of random maintenance policies to sustain the post-warranty reliability, i.e. random replacement first and random replacement last. By integrating depreciation expense depending on working time, the cost rate is constructed for each random maintenance policy and some special cases are provided by discussing parameters in cost rates. Finally, sensitivities on both the proposed warranty and random maintenance policies are analyzed in numerical experiments.

The working cycle of products can be monitored by advanced sensors and measuring technologies. By monitoring the working cycle, manufacturers can design warranty policies to ensure product reliability performance and consumers can model the post-warranty maintenance to sustain the post-warranty reliability. In this article, the authors design a limited number of random working cycles as a warranty term and propose two types of warranties, which can help manufacturers to ensure the product reliability performance during the warranty period. By extending a proposed warranty to the consumer's post-warranty maintenance model, the authors investigate two kinds of random replacement policies to sustain the post-warranty reliability, i.e. random replacement first and random replacement last. By integrating a depreciation expense depending on working time, the cost rate is constructed for each random replacement and some special cases are provided by discussing parameters in the cost rate. Finally, sensitivities to both the proposed warranties and random replacements are analyzed in numerical experiments.

It is shown that the manufacturer can control the warranty cost by limiting number of random working cycle. For the consumer, when the number of random working cycle is designed as a greater warranty limit, the cost rate can be reduced while the post-warranty period can't be lengthened.

The contribution of this article can be highlighted in two key aspects: (1) the authors investigate early warranties to ensure reliability performance of the product which executes successively projects at random working cycles; (2) by integrating random working cycles into the post-warranty period, the authors is the first to investigate random maintenance policy to sustain the post-warranty reliability from the consumer's perspective, which seldom appears in the existing literature.

The purpose of this paper is to review and develop stochastic models for the evaluation of the expected warranty cost, from dealer's viewpoint, for second hand items sold under different warranty policies.

This study makes a useful contribution to the warranty literature by developing a framework to study one dimensional warranty policies for second‐hand products from dealer's viewpoint. Also, numerical examples are provided to illustrate the application of these models.

Despite the fact that warranties for second‐hand products are commonly used, the accurate pricing of warranties in many situations remains an unsolved problem, for both the dealer and customer. The proposed framework allows the dealer to analyze the cost of alternative warranty policies before deciding on the policy to be offered with the sale of a second‐hand item.

The policies and models developed in this paper can be useful in managerial decisions making related to second‐hand products such as automobiles, home appliances, helicopters, electronic equipment and electronics.

Due to the fact that the non-standard products, being used by customers, may cause failures in products with sales delays, which naturally affect the warranty policy. Thus, it seems to be necessary to study these two concepts simultaneously. The paper aims to discuss these issues.

In this paper, a model is developed for estimating the expected warranty costs under sales delay conditions when two operator costs (failing but not reported and non-failing but reported) are included.

The proposed model is validated using a numerical example for a two types of intermittent and fatal failures occur under a non-renewing warranty policy.

Sales delay is the time interval between the date of production and the date of sale. Most reported literature on warranty claims data analysis related to sales delay have mainly focussed on estimating the probability distribution of the sales delay.

The purpose of this paper is to propose a warranty-based bilateral automated multi-issue negotiation approach.

A methodology for bilateral automated negotiation process is developed considering the targets such as warranty attractiveness, warranty cost, mean time between failures, spare parts cost to the end user over the useful life of the life. The negotiation methodology is explained using different cases of negotiation. The optimization for each negotiation step is carried out using genetic algorithm with elitism strategy.

The result after optimization indicates that the desired target values are achieved and manufacturer obtained desired profit margin.

Application of automated negotiation model is illustrated using a real life case of an automobile engine manufacturer. The proposed approach helps the manufacturer of any product to develop a methodology for carrying out the negotiation process. The approach also results into taking warranty-related decisions at the design stage.

This paper contributes in proposing a generalized methodology for warranty-based negotiation in which the negotiation is carried out between the manufacturer and the customer.

To investigate the optimal burn‐in time from the perspective of minimizing the expected total cost (i.e. manufacturing plus warranty costs) per unit of product sold under a failure‐free renewing warranty policy. The conditions indicating when burn‐in becomes beneficial were also derived.

An age‐dependent general repairable product sold under a failure‐free renewing warranty agreement was considered. In the case of such a general repairable model, there are two ways in which the product can fail: type I failure (minor) can be rectified through minimal repairs; while in type II failure (catastrophic), the product must be replaced. Then optimal burn‐in time is then examined in order to achieve a trade‐off between reducing the warranty cost and increasing the manufacturing cost.

The optimal burn‐in time depends on the failure/repair characteristics, length of warranty, cost parameters and the probability of failure type II (catastrophic). A burn‐in program is beneficial if the initial failure rate is high or product failures during the warranty period are costly. Moreover, the optimal burn‐in time is always less than the infant mortality period.

The product considered in this paper is an age‐dependent general repairable product: on which no such study has yet been conducted. This is also the first study to apply a failure‐free renewing warranty to a general repairable item. It can be seen that the present model is a generalization of the model considered by Chien and Sheu.

This paper will be focused in one of the stages included in a reference framework proposed for the improvement of the warranty management. Particularly, the Analytic Hierarchy Process (AHP) is a multi‐criteria decision‐making method that will be depicted throughout this document and applied to a particular case study.

Once the warranty program objectives and strategy are defined, the referred stage here considered will be the Criticality Analysis. Those decisions and actions taken from the warranty program will involve the possibility of a certain deviation from business objectives in terms of profit losses, redirection of resources, possible delays etc., or the use of assembly pieces as spares, among others.

The application is required of a technique which helps systematically to decide which assets should have priority related to the management of the warranty program, in accordance of course with the existing program strategy.

The paper will show how this method can help and improve the decision‐making related to some aspect of the warranty management, obtaining as a result a criticality matrix, which offers a prioritized view of warranty issues, which allow us to align after sales actions with the business targets.

This paper aims to explore different aspects related to the Analytic Hierarchy Process (AHP), which can influence in the management of warranty assistances. In the process of warranty management for a specific product, many decisions and actions appear presenting a great impact on the total cost of the product warranty service. The paper contains an example study where AHP concepts are applied in a simple way in order to provide a practical application view of the theoretical development, useful to after sales managers as a decision‐making tool.

The purpose of this paper is to explore certain remaining differences in the underlying legal considerations and the differing customs and practices of US and UK mergers and acquisitions in relation to certain issues.

A review was undertaken of the leading cases in the UK and various states of the USA and custom and practice in the UK and USA, in each case in relation to the following areas: representations and warranties; disclosure; the effect of the buyer's knowledge; repetition of warranties/representations; and material adverse change.

Although the historical differences between UK and US mergers and acquisitions are diminishing as the frequency of trans‐atlantic transactions increases, there remain certain variances which have important implications for the allocation of risk between a buyer and seller in any trans‐atlantic merger or acquisition.

This paper is useful for professional advisers acting in connection with a trans‐atlantic merger or acquisition and for buyers and sellers contemplating such transactions.

While previous research has shown a positive influence of a brand ally or a warranty, published research has not explored the effects of using multiple types of quality signals. The purpose of this paper is to explore the joint effect of a default‐independent signal (i.e. a brand ally) combined with a default‐contingent signal (i.e. a warranty) on the focal brand's evaluations.

This paper reports the findings of a 2 (ally: none vs one) × 2 (warranty: no vs yes) between‐subjects factorial design in which 174 subjects were randomly assigned to experimental conditions.

The study's findings indicate that, individually, both brand alliance and warranty were a significant signal of product quality. However, the use of multiple types of signals, as opposed to one signal, did not add incrementally to consumer's perceived quality evaluations of a focal brand. In addition, risk reduction mediated the effects of brand ally and/or warranty on the focal brand's evaluations.

Recently, researchers have started to explore the influence of multiple brand alliance signals on consumer evaluations of brand. However, only the same type of signal has been examined. Signaling theory suggests that other marketing mix elements are marketplace signals of quality. This study contributes to the literature by investigating the role of multiple types of quality signals in brand building.

Research in marketing has extensively examined the signaling effects of product warranties on consumer perceptions. Although this stream of research has focused on initial product warranties offered by the manufacturer, studies of extended warranties, which protect consumers against product breakdowns beyond the warranty constraints of the manufacturer, are relatively scarce. This paper aims to empirically establish the effects of variables which influence the pricing of extended warranties for consumer durables.

Using data on over 8,000 product offers in six durable goods categories, drivers of the annual premiums for extended warranties are empirically identified. Bivariate and multi-level hierarchical linear regression methods are used to establish the effects of factors which may drive the prices of extended warranties.

The results reveal that the standardized annual premiums for extended warranties systematically vary across product categories and brands and are further affected by the retailer’s decision to use odd price endings for the sold product and the extended warranty. The influences of warranty length and price level of the protected product on extended warranty premiums are also empirically established.

The findings indicate systematic variations in extended warranty prices as a result of the factors studied. Future research can extend this line of inquiry by utilizing alternative means of data gathering.

Given that marketers often cross-sell many consumer durable goods with extended warranty policies, and considering the growth in consumer spending in this category, as well as the high retail margins associated with extended warranties, this paper contributes to the understanding of the mechanism by which extended warranty prices are determined in the marketplace.

This is the first study to examine the determinants of extended warranty prices, as past studies have been normative and non-empirical in nature.

Construction defects in residential buildings are causing significant impacts both on consumers and the industry. As a consequence, several countries have established new home warranty schemes. However, designing a public policy for domestic building warranties can become a difficult task. In fact, many of these programs in the past have failed, collapsed or gone bankrupt. Therefore, the purpose of the current research is to provide a systematic comparative representation of various active programs internationally.

The methodology relied on a multiple-case study research design. The case selection covered a total of nine jurisdictions with compulsory home warranty programs. Those included Japan, France, United Kingdom, three provinces in Canada (Ontario, British Columbia and Alberta), and three states in Australia (New South Wales, Victoria and Queensland). The study applied a data collection protocol to gather all the evidence in a replicable manner for each individual case. Subsequently, a cross-case analysis was conducted to identify similarities and variations between programs.

The findings unveiled institutional practices that aimed to resolve, compensate, or rectify defects in residential constructions within these countries. The review mostly suggested that every home warranty program presents certain unique characteristics. At the end, this paper proposed an analytical illustration representing the diversification of components adopted by each jurisdiction.

Nowadays, there is still not a consensus within the academic community on what is an optimal solution when conceiving a new home warranty program. Hence, the current study aims to fill this knowledge gap by presenting the plurality of methods employed by several countries. This paper seeks to help policy makers and industry leaders to improve their home warranty scheme based on awareness derived from observations and analyses of what has been accomplished elsewhere in the world.