Final answer:
Assurance entails explicit and unstated guarantees, like guarantees, warranties, and service contracts, as well as insurance methods and money-back guarantees, providing a form of protection and certainty to the consumer.
Step-by-step explanation:
Assurance refers to the guarantee or commitment by a seller to reassure the buyer about the quality or durability of a product or service. Guarantees, warranties, and service contracts are forms of explicit reassurance that provide a promise to repair, replace, or service a product within a certain time frame. Unlike these explicit forms, unstated guarantees are those not formally advertised but offered based on a firm's customer service policy, such as a movie theater refunding a ticket if a customer is dissatisfied with the show, or a restaurant allowing a dish exchange.
Moreover, insurance is a method of financial protection where regular payments to an insurance company yield compensation for significant losses under a policy coverage. Withdrawals from insurance translate into a moral hazard, where insured parties may take more risks as they feel protected from the consequences. A money-back guarantee is another form of assurance where a seller promises to refund the buyer's money if they are unsatisfied under specific conditions, thus offering further consumer protection.