Consumers View Availability of Extended Service Contracts Positively in New Online Survey Conducted by Fulcrum
Purchasers of Broad Range of Consumer Goods Rate Extended Service Contracts as Important as Product Reviews and Financial Incentives
SAN DIEGO, March 13, 2013 /PRNewswire/ — Consumers view the availability of extended service contracts as a positive option that enhances and extends the life of the products they purchase according to a new survey conducted by Fulcrum (www.fulcrum-mktg.com).
According to the findings, released here at the Warranty Chain Management Conference being held from March 12-14, more than half of consumers who purchased a digital camera (60 percent), major appliance (64 percent), power sports equipment (57 percent) or outdoor power equipment (60 percent) in 2012, indicated that the availability of an extended service contract was important in their purchase decision.
Among those who purchased external hard drives, digital cameras, major appliances, power sports and outdoor power equipment, they found the availability of extended service contracts as important to them as product reviews and financial incentives.
“Consumers in our survey clearly indicated that the availability of an extended service contract is not an admission of a product quality problem; in fact 90 percent or more believe it’s a strong benefit that will extend their length of product ownership,” said Tara Piazza, senior vice president, Fulcrum.
The online survey, the third in an annual series, was conducted in February 2013 based on interviews with 678 consumers who purchased an external hard drive, digital camera, appliance, powers sports equipment or outdoor power equipment from a retailer or dealer offering those products. Each category reflected at least 100 purchasers who were picked regardless of whether they had purchased an extended service contract or not.
Consumers most frequently purchase their extended service contract in all product categories measured while making their initial product purchase (56 percent or more), followed by shortly after the purchase (23 percent or more), near the warranty expiration (16 percent or more) or after their warranty’s expiration (12 percent or more).
As far as preference for a manufacturer’s extended service contract over a third party provider, consumers strongly prefer the manufacturer’s offering and/or would only buy a manufacturer-sponsored contract, using OEM parts as illustrated by 89 percent of appliance purchasers who expressed preference for a manufacturer’s plan.
Consumers appear to be more open to whether the contract is serviced by the manufacturer or a third party. Between 42 and 48 percent reported that they would consider service from a third party, although they preferred to obtain service from the manufacturer.
Fulcrum provides marketing, commerce and administrative solutions to manufacturers and retailers of durables that offer extended service contracts. Its annual survey is designed to help sellers of extended service contracts to better understand the mindset of consumers. For a complete copy of the survey, visit www.fulcrum-mktg.com.
Leading businesses turn to Fulcrum to increase and accelerate the profitability of their marketing and advertising investments. Fulcrum offers advanced marketing solutions, from building and managing rich, multi-channel databases, to predictive and segmentation modeling, advanced analytical tools, and design and execution of cross-channel, customer-centric marketing programs.
Fulcrum is headquartered in New York City with its major operational center in Fairfield, Conn. Visit www.fulcrum-mktg.com for more information.