Many firms sell their products with a “life-time guarantee”. Sometimes, it is unclear if this guarantee refers to the life time of the product, of the producer or of the client. Apart from this, the life-time guarantee is a fundamental part of the market strategy of some big firms as, for example, L.L. Bean, which is a catalog seller of sport outfit and shoes for long use. In some cases, it is believed that the company would go bankrupt if all its clients return their products. It seems that the majority doesn’t return the product if it serves a reasonably long time. (Based on Zaslow, 1987)
1. What kinds of products are eligible to be sold with a life-time guarantee?
2. Will you offer a life-time guarantee for courses like “How to stop smoking” or “How to lose weight”?
3. And what about “How to find the man/woman of your life”?
4. What is the reason why most of the clients don’t return the purchases?