A new study finds what consumers are seeking when it comes to making big ticket purchases. This is ‘product protection‘ (a term that defines many types of applications to different levels). It seems from the U.S. based research that product protection plans not only sway shoppers to hit ‘check-out’, but one-third of respondents agree they would not purchase from a brand that did not offer these plans. The survey comes from the company Mulberry.
The survey involved a poll of 1,500 U.S. adults. The core finding is that consumers appear to be seeking an improved product protection experience, one that offers wider coverage, easy claims experiences for flexible best-in-class protection.
As to what consumers are looking for in terms of protection, this includes everyday family calamities like sticky kid fingers and dirty paws are the biggest motivating factor in product protection plan purchases. With this factor, the survey found that 91 percent of consumers with children said they would be willing to invest in product protection plans and 77 percent of pet owners expressed a similar sentiment.
Effective protection should be:
- Transparent
- Value for money.
- Comprehensive.
- Comply with the law.
- Easy to understand.
- Contain an acknowledgment of risk on behalf of the manufacturer.
- Support the business and its customers.
Despite its growing importance, “product protection plans have functioned poorly in the past, providing too little protection at too high a cost,” says Mulberry CEO Chinedu Eleanya in a message sent to Digital Journal. This sets out the case for reform.
The study additionally found that 43 percent of shoppers found plans too expensive and 33 percent of consumers point to what is covered by protection plans as the most important factor in whether or not they purchase.
What is of importance to business intelligence is that almost half of U.S. citizens (47 percent) are more likely to select brands that offer product protection plans. Furthermore, around one third (32 percent) indicated they would not buy from a brand that did not offer a robust protection plan.
The lesson that businesses can draw from such findings is that operating a suitable product protection plan is something that appears to be good for building and deepening brand loyalty. For this loyalty to be continued, it also remains importance that consumers experience a positive claims process.
A positive experience is more likely to result in the consumer making a recommendation to a company or making another purchase if they have themselves experienced a positive claims process.
The extent of the warranty on offer is also important. Consumers do not want to have to seek top up warranties or insurance. The product itself, or the retailer, should be taking responsibility.
