Guarantees reduce the buyer’s perceived risk. They suggest that the product is of high quality
and the company and its service performance are dependable. They can be especially helpful when
the company or product is not well known or when the product’s quality is superior to that of competitors.
Hyundai’s and Kia’s highly successful 10-year or 100,000 mile power train warranty
programs were designed in part to assure potential buyers of the quality of the products and the
companies’ stability.