Educated Consumers Spend More

There is not an abundance of data driven information available to the retail community regarding extended warranties, accident protection, and the effects these offerings have on a retailer’s most valuable asset: their customers.
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Until recently, offering extended warranties to the consumer was something accessible only to the largest of retailers, brand manufacturers, and the automobile industry. By combining both qualitative and quantitative observations from transactional history over a five month period where consumers were given the opportunity to add product protection to their purchase at the point of sale, our research supports the theory that consumers who value protection plans are informed, savvy, and educated shoppers, as indicated by an increase in their willingness to pay when provided the opportunity to purchase a protection plan at the time of purchase.