Question

Recently, mercedes-benz quietly reduced its warranty coverage by eliminating some free scheduled maintenance, because the expense for the firm was too high. at the same time, hyundai and others have expanded their warranties to build consumer confidence in their cars. they realize that extending the period of warranty coverage demonstrates they are making better cars in a very tangible way. these are examples of firms considering the ______ of the product warranty.

Answer 1

These are examples of firms considering the cost and benefits in terms of the product warranty. The cost and benefits lies on the expense or money that the company uses while the benefits are the advantages that the company gains with the particular event or strategy produced.