The reputation of the warranty company. It a company has a good customer service record, customers may be more likely to buy the warranty. Apple Care, for instance. tends to be highly rated and is often purchased. What the warranty will cover. Some warranties are very extensive, while others are limited by a lot of ne print. Warran- ties that offer a lot of protection may entice someone to purchase. Conversely. policies that have many coverage limitations or require routine maintenance to avoid nullifying the warranty may seem less desirable. The length of the regular warranty. If the customer feels that the regular warranty is generous, or if the product type tends to have a long life, the extended warranty may seem less important. How long the user plans to keep the product and how long the product life cycle is. If a user plans to keep the product, for instance a phone, for a short period of time, the normal warranty may already be long enough. Similarty, if the technology of the product becomes quickly obsolete. the customer may prefer upgrading to a newer model over opting for a repair. Is the extended warranty a \"good buy\"? Extended warranties can be very expensive. and some experts suggest the consumer is better off putting the cost of the warranty into a savings account where it is available if needed (Gauntt, 2019). Additionally, many credit card companies offer extended warranty protection if the purchase is made on that account, which is a simpte and free way to avoid paying for extra coverage for some types of products. The odds of actually needing the warranty are slim; thus, they are huge money makers for the companies that sell them. This is mainly because the extended warranty covers the product during its normal useful life. when most of the products should still be functioning properly. Dave Ramsey. a personal nance guru and popular public speaker states. \"Extended warranties are a really horrible set of mathematics, and the reason people sell them is because they make a bundle on them in commissions" (Consumer Reports, 2018). Many appliances, for instance, last so long that the extended warranty will expire long before they will. The typical refrigerator lasts 14 to 27 years, and even a microwave oven can last seven to nine years. \"Most of the things we buy today are reliable: They come with warranties that protect us and last the amountoftime we expect them to." explains Richard M. Alderman. head of the Con- sumer Law Center of the University of Houston (Mlliams. 2013). Of course, if a persOn happens to get one of the few products that does fail during the time of the extended warranty, having an extended warranty would be a good thing. However, most extended warranty purchasers will not need the service. similar to how most people who purchase term life insurance do not end up needing the coverage. A Consumer Reports member survey indi- cated that most car owners spent more on the extended warranty than the value of the services they got back in return (Consumer Reports, 2018). Ultimately, each person has to decide for themselves whether the peace of mind and convenience of an extended warranty offer enough value to justify the cost. 1. How do warranties or extended warranties affect a company's costs and reputation? 2. What strategic considerations should be taken into account when deciding how long a warranty to offer