When product quality is unobservable to consumers, a manufacturer can convey the quality information using signals such as warranty and brand reputation. The purpose of this paper is to study the interactions between warranty, brand reputation, and product quality, and to examine the quality signaling strategies. We model a monopolist who tries to convey unobservable product quality to heteroge...

Lifetime warranties is becoming popular as they provide assurance to buyer for longer reliable service and greater customer peace of mind for the whole life of the product. By offering a lifetime warranty, both the manufacturer and the buyer are exposed to uncertainties and risks of warranty pricing and product performance during the lifetime of the product. This paper analyses the sensitivity ...