Assessing the effectiveness of a product warranty in a health-care setting

The product warranty plays an increasingly important role in today's highly competitive marketplace. The use of warranties is widespread, but its use has only relatively recently been applied in the health-care sector. This study will attempt to assess the effectiveness of an eyeglass warranty at a privately owned and operated, single outlet, retail optical center. The respondents were divided into two groups: respondents who had purchased an eyeglass warranty in a previous visit and respondents who did not purchase an eyeglass warranty in a previous visit. The two groups were compared based on several variables associated with the role of a product warranty: brand loyalty, store loyalty, satisfaction and risk aversion. Implications for health-care marketing were discussed and limitations and future research directions were suggested.