Consumers' perceptions of extended service contracts: an empirical analysis

Abstract

This study was designed (1) to empirically distinguish between buyers and non-buyers of an extended service contract according to eight groups of variables, and (2) to develop a profile of consumers most likely to purchase extended service contracts. A mail survey was conducted from April 1993 through May 1993 with a randomly selected sample of consumers (N = 991) who had during of October, November, and December 1992 purchased a new television set from a seven-store retail chain. After an initial mailing and two follow-up mailings, 440 questionnaires were returned of the 957 that were received by respondents (34 were returned as undeliverable). This represented a total response rate of 46% (440/957). Thirty-one of the questionnaires were returned blank or less than half complete by respondents unable or unwilling to participate. The final usable return rate was 42.7% (409/957).