Demonstrations and money-back guarantees: Market mechanisms to reduce uncertainty

Amir Heiman; Bruce McWilliams; David Zilberman

doi:10.1016/S0148-2963(00)00181-8

Demonstrations and money-back guarantees: Market mechanisms to reduce uncertainty

Amir Heiman^*, Bruce McWilliams, David Zilberman

^*Corresponding author for this work

Department of Environmental Economics and Management

Research output: Contribution to journal › Article › peer-review

94 Scopus citations

Abstract

This paper analyzes consumer, retailer and manufacturer preferences for use of two important risk reduction tools: money-back guarantees and demonstrations. Theoretical findings from economics, marketing, consumer behavior and psychology are integrated to analyze the performance of these mechanisms under various conditions and product characteristics. The paper investigates the relationship between these two risk reduction mechanisms and reveals in which ways the two are complements or substitutes, identifying under which conditions money-back guarantees and demonstrations will be used separately, together, or not at all.

Original language	English
Pages (from-to)	71-84
Number of pages	14
Journal	Journal of Business Research
Volume	54
Issue number	1
DOIs	https://doi.org/10.1016/S0148-2963(00)00181-8
State	Published - Oct 2001

Bibliographical note

Funding Information:
The authors acknowledge the financial support of the Israeli Academy of Science for this paper.

Keywords

Demonstrations
Learning risk
Money-back guarantees
Uncertainty

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10.1016/S0148-2963(00)00181-8

Cite this

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Demonstrations and money-back guarantees: Market mechanisms to reduce uncertainty

Abstract

Bibliographical note

Keywords

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