Question

Extended warranties and money-back guarantees are examples of:___.multiple choice question.

a. insurance aimed at risk neutral consumers.
b. profit-sharing plans that protect risk loving consumers.
c. unnecessary markups and price gouging.
d. insurance aimed at risk averse cons.

Answer 1

Extended warranties and money-back guarantees are examples of insurance aimed at risk averse consumers. These policies provide financial protection for consumers and encourage confident purchases.

Step-by-step explanation:

Extended warranties and money-back guarantees are examples of insurance aimed at risk averse consumers.

These policies provide consumers with financial protection in case the purchased product or service does not meet their expectations or malfunctions.

By offering such assurances, sellers are able to alleviate the risk of dissatisfaction and encourage consumers to make purchases with confidence.