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Article

Diane Halstead, Cornelia Dröge and M. Bixby Cooper

Focuses on a group of unsatisfied carpet owners. Examines the rolesof the carpet warranty and the post‐purchase service received during thecomplaint process in terms of…

Abstract

Focuses on a group of unsatisfied carpet owners. Examines the roles of the carpet warranty and the post‐purchase service received during the complaint process in terms of their effects on customers′ satisfaction with complaint resolution. Presents some suggestions for customer service policies, complaint handling procedures, and warranty fulfilment service.

Details

Journal of Services Marketing, vol. 7 no. 1
Type: Research Article
ISSN: 0887-6045

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Article

A. Ben Oumlil

This case study aims to develop and empirically test a general framework for the implementation and evaluation of a warranty policy (i.e. implementation, support…

Abstract

Purpose

This case study aims to develop and empirically test a general framework for the implementation and evaluation of a warranty policy (i.e. implementation, support structure, and evaluation stages) within the context of a high‐tech global firm.

Design/methodology/approach

The sample consisted of the employees of an anonymous US‐based global high tech firm.

Findings

The findings for the implementation stage report that the cost and profit centers should have their costs allocated on the basis of activity. For the support structure, there is a negative response to outsourcing as an option for implementing the warranty policy. For the evaluation, findings report that US firms should reevaluate their pricing, quality, and warranty strategy for domestic and international markets.

Research limitations/implications

This case study can be expanded by examining how companies balance the cost/quality/warranty ability of the product, the techniques used to allocate warranty costs, and to evaluate multiple companies/industries, perhaps with a longitudinal focus.

Practical implications

Findings report that the budgeted costs should be allocated depending on the type of incident. The majority of outsourcing opponents consisted of service personnel while those in favor were from product marketing departments. Also, the US firms need to provide written warranty information to their customers.

Originality/value

The proposed framework will satisfy a current, critical need to provide guidelines for the steps needed to implement and evaluate a warranty policy within a context of a high tech global company. Additionally, this case research study's key contribution lies in its attempt to address warranty management processes within a multitude of a firm's departments. Furthermore, the anonymous high tech company used in this study was chosen as a sample because the company offered a wide range of products, warranties, and service options. The company also utilized a vast reseller base to sell and service its products. This method offered the potential to gain better insight with regards to the role of resellers in a warranty program. It also marketed products and services to six specific industries: financial, retail, transportation, manufacturing, communications, and the public. This broad industrial perspective gave the study added cross‐industries' insight in reference to implementation and evaluation of a good warranty policy since the anonymous high tech company considers these industries to be sustainable industries in the USA and abroad.

Details

Journal of Product & Brand Management, vol. 22 no. 2
Type: Research Article
ISSN: 1061-0421

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Article

R.S. Mason

The product warranty has become an increasingly important factor contributing to the consumer's assessment of overall product value in recent years and, in consequence…

Abstract

The product warranty has become an increasingly important factor contributing to the consumer's assessment of overall product value in recent years and, in consequence, can nowadays have a significant effect on demand levels for a particular product make or brand. The warranty is in effect an “added value” component by which the manufacturer commits himself to a given level of responsibility (usually over a specific time period) for the performance of the product he sells.

Details

Management Decision, vol. 11 no. 3
Type: Research Article
ISSN: 0025-1747

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Article

A. Ben Oumlil

The purpose of this paper is to address what a sound warranty policy entails by identifying the key variables involved in the development of a warranty program.

Abstract

Purpose

The purpose of this paper is to address what a sound warranty policy entails by identifying the key variables involved in the development of a warranty program.

Design/methodology/approach

The sample population was composed of employees in the US division involved with high‐tech product warranties. A survey questionnaire was used to collect data from the participants.

Findings

The paper finds that the formality of the warranty policy should depend on its complexity. Differences exist between types of warranty based on the product knowledge of the buyer. Although a standardized warranty is easy to administer, as the product line diversifies, it becomes more challenging to standardize.

Research limitations/implications

This study can be expanded by examining how companies balance the cost/quality/warranty ability of the product, the techniques used to allocate warranty costs, and to evaluate multiple companies/industries, perhaps with a longitudinal focus.

Practical implications

The formality can be used to communicate the product warranty throughout the organization. Each department has a responsibility to the customer, so team members from service, product development, and marketing should plan and develop the warranty. A standardized warranty can send a clearer message to a customer about a firm's products. Simplifying front and back‐end processing and streamlining support structures can reduce costs.

Originality/value

In this paper, the identified key variable is brought out in warranty management framework. The development of this framework will satisfy a current, critical need to provide guidelines with all the steps needed to develop a warranty policy.

Details

Journal of Business & Industrial Marketing, vol. 23 no. 7
Type: Research Article
ISSN: 0885-8624

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Article

Ata Allah Taleizadeh and Mahtab Sherafati

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between…

Abstract

Purpose

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter.

Design/methodology/approach

Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect.

Findings

Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits.

Originality/value

In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

Details

Journal of Modelling in Management, vol. 14 no. 3
Type: Research Article
ISSN: 1746-5664

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Article

Yanrong Li, Qingqing Zhao and Shuguang He

The purpose of this paper is to build a warranty cost model for consumer electronics with short lifecycle and frequently upgraded process in generations. Meanwhile, a new…

Abstract

Purpose

The purpose of this paper is to build a warranty cost model for consumer electronics with short lifecycle and frequently upgraded process in generations. Meanwhile, a new warranty service method of replacing the failed old generation (OG) products by new generation (NG) products is proposed to cease the service capability for the OG products from manufacturers’ viewpoint.

Design/methodology/approach

A model is built to find an optimal time to switch to the new warranty service method to minimize the warranty cost of the OG products. The inventory cost of spare parts of OG products for warranty, repair cost and manufacturing cost of NG products are taken into account. Meanwhile, a mixed strategy is studied by providing options to customers for replacing their failed OG products with NG products by paying a discounted price of the OG products. Moreover, numerical experiments are conducted to test the effects of different parameters on the optimal solutions.

Findings

Solutions to the proposed model are discussed with analytic method and it is proved that the optimal solution exists in the considered situations. The mixed strategy considering the willingness of customers can result in the reduction of the warranty cost.

Originality/value

This paper analyzes the situation that more than one generations of products are in the marketplace simultaneously. Furthermore, this work makes a useful contribution for manufacturers to decrease their warranty cost by changing the service method, and provides the optimal warranty strategy for manufacturers considering the willingness of customers.

Details

International Journal of Quality & Reliability Management, vol. 35 no. 1
Type: Research Article
ISSN: 0265-671X

Keywords

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Article

Ahmed M. Aljazea and Shaomin Wu

The purpose of this paper is threefold: first, to analyse the existing work of warranty risk management (WaRM); second, to develop a generic WaRM framework; and third, to…

Abstract

Purpose

The purpose of this paper is threefold: first, to analyse the existing work of warranty risk management (WaRM); second, to develop a generic WaRM framework; and third, to design a generic taxonomy for warranty hazards from a warranty chain perspective.

Design/methodology/approach

To understand the top warranty hazards, the authors designed a questionnaire, received 40 responses from the warranty decision makers (WDM) in the automotive industry in the UK and then analysed the responses.

Findings

The assembly process capability at suppliers is the top contributor to warranty incidents from the suppliers’ and original equipment manufacturers’ (OEMs’) viewpoints. The human error at different stages of the product lifecycle contributes to the occurrence of warranty incidents. The collaboration among parties, particularly, the accessibility to warranty-related data between parties (i.e. suppliers, OEM and dealers), is limited. Customers’ fraud contributes more to warranty costs than warranty services providers’ fraud. The top contributors to customer dissatisfaction relating to warranty are the warranty service time and service quality.

Research limitations/implications

The questionnaires were used to collect data in the UK, which implies the research outcomes of this paper may only reflect the UK area.

Practical implications

The WaRM framework and taxonomy proposed in this paper provide WDM with a holistic view to identifying the top contributors to warranty incidents. With them, the decision makers will be able to allocate the required fund and efforts more effectively.

Originality/value

This paper contributes to the literature by providing the first work of systematically analysing the top contributors to warranty incidents and costs and by providing a WaRM framework.

Details

International Journal of Quality & Reliability Management, vol. 36 no. 7
Type: Research Article
ISSN: 0265-671X

Keywords

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Article

Vicente González‐Prida Díaz, Luis Barberá Martínez, Juan Francisco Gómez Fernández and Adolfo Crespo Márquez

The purpose of this paper is to present a brief summary of quality and contractual aspects for the improvement of the warranty management. Together with this, the present…

Abstract

Purpose

The purpose of this paper is to present a brief summary of quality and contractual aspects for the improvement of the warranty management. Together with this, the present work will show also some of the best practices followed by companies in order to manage properly those kinds of issues related to warranty, as well as some indications to assess the implementation degree of such practices in the whole organization. Basically, the global objective of the study is to present to the reader and in few words the importance of taking into account legal and quality aspects, when a company offers a technical service for the warranty assistance of any of its products, together with the maturity level that this company achieves applying some best practices currently available.

Design/methodology/approach

The study starts by mentioning some antecedents related to warranty, in order to summarize a reference framework, proposed for proper warranty management, and how the information exchange should be performed among the different departments of a generic company. Then, it will be suggested how to apply this according to a strategic management which is divided in phases, taken from the product life cycle concept: Front‐end, Design and Development, Production, Marketing, and Post‐sale Support. These phases are included in three higher stages considered as Pre‐Launch stage, Launch and Post‐Launch stage, where different decisions play important roles. Afterwards, it will be shown how warranty management is viewed from the contract and legal point of view, in order to link the above mentioned topics on generic management, with those best practices currently presented in actual markets. Finally, once analysed, all those aspects related to best practices and its application on the reference framework, it is required now to quantify how a company manages the warranty assistances by a maturity assessment on warranty management.

Findings

The paper observes what today's companies are doing in this field, that is, their best practices in warranty management covering the quality and contractual aspects already mentioned, in order to round off the development of a completed framework for such management.

Originality/value

The paper presents a review, a framework and a practical application of the framework for the management of warranty contracts, including a maturity assessment or evaluation.

Details

International Journal of Quality & Reliability Management, vol. 29 no. 3
Type: Research Article
ISSN: 0265-671X

Keywords

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Article

Miriam Borchardt, Marcelo Souza, Giancarlo M. Pereira and Claudia V. Viegas

Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the…

Abstract

Purpose

Branded car dealerships with best revenue by serviced car also have the best after-sales customers’ satisfaction level. The purpose of this paper is to present the analysis of the after-sales quality management practices adopted by dealerships with the best performance in terms of customer’s satisfaction and revenue and how such practices contribute to these results.

Design/methodology/approach

A multiple case study was performed with nine leader branded car dealerships in an emerging country, considering the entrance car. The performance indicators to evaluate customers’ satisfaction, revenue and operational indicators related to product support, brand manifestation and relationship with customers were identified. Quality management practices that support the best results achievement were analyzed.

Findings

The three dealerships that represent Asiatic brands have best customers’ satisfaction and revenue performance. These dealerships typically have different processes comparing with dealerships that represent European and American brands concerning to: continuous improvement management; warranties and stock management; services scheduling; offer bonuses to customers; and customers service that emphasizes focus on technical and commercial expertise.

Originality/value

This research considered indicators performance and, based on that, analyzed the dealerships’ practices that support the best performance. Such aspect has room for academic literature since the quality management research related to car industry focuses mainly on manufacturer and generates managerial insights to the car industry and its dealerships.

Details

International Journal of Quality & Reliability Management, vol. 35 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

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Article

D.K. Manna, Surajit Pal and A. Kulandaiyan

This article deals with the problem of cost estimation for increased warranty time of a multi‐module product. The warranty policy of interest is two‐dimensional involving…

Abstract

This article deals with the problem of cost estimation for increased warranty time of a multi‐module product. The warranty policy of interest is two‐dimensional involving warranty limits on both age and usage of the product. Failure of the product is caused due to malfunctioning of its module(s). Warranty service is rendered through repair or replacement of the respective module(s). From the past data, it is observed that age and usage are highly correlated. Based on life (age) data, the joint life distribution of the modules is well described by multivariate exponential distribution of Marshall and Olkin. The same is utilized to estimate cost for desired warranty times by the method of simulation.

Details

International Journal of Quality & Reliability Management, vol. 21 no. 1
Type: Research Article
ISSN: 0265-671X

Keywords

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