teachthe4ps.com - For instructors of marketing.

This radio story, from All Things Considered on National Public Radio, examines extended warranties. While many consumer experts advise against buying these warranties, they continue to sell very well. NPR’s story “Peace Of Mind Drives Buying Of Extended Warranties,” includes an interview with Dan Ariely (marketing professor at Duke University, author of the book Predictably Irrational and blog of the same name) who explains the psychology behind this less than rational purchase  We discuss warranties in the first of our two product chapters.  The story also deals with consumer behavior and perceptions of risk.

Update 1-11-10:  I found another article on this topic, see “Don’t Worry, Be Happy:  The Warranty Psychology,” from the New York Times, November 6, 2009.

This entry was posted on Tuesday, January 5th, 2010 at 11:18 am and is filed under Consumer behavior, Product. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.