When a manufacturer offers a money-back guarantee on the purchase of its products to show that the products will perform as expected, it is most likely attempting to alleviate which risk?

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Business

6 May, 10:33

When a manufacturer offers a money-back guarantee on the purchase of its products to show that the products will perform as expected, it is most likely attempting to alleviate which risk?

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Answers (2)

Know the Answer?

Kendall Stokes · Answer 1

it is most likely attempting to alleviate financial risk

Natalya Lang · Answer 2

Financial risk of customer

Explanation:

The reason is that when the supplier says that I am guaranteing that we pay back your if you thing there is an issue with the product and we are offering this because our product doesn't have even any single issue like this. This creates priority of the product in the mind of customer because customer thinks that the amount would be able to have their money back, in case the product doesn't perform well. So if the product does not performs well then their is the risk that the customer will not get its money back and a loss because they will have to spend extra to buy another product, which is financial risk of customer. So offering a money back guarantee on purchase removes this financial risk of loosing money.