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A service guarantee is a promise that a service or product will meet certain consumer expectations or standards. Many times it is provided to the consumer in writing. If the product fails to perform as promised, the vendor may offer replacement of the item, refund the purchase price, or offer other forms of reimbursement, like a store credit. The purpose of it is to instill consumer confidence.
The type of promise that a merchant makes may differ, depending on the product or service. It is not uncommon for a service guarantee to be predicated on the consumer meeting specific terms and conditions. This places some of the responsibility on the customer.
Stipulations to a service guarantee may prohibit tampering with a product or require that certain maintenance schedules are followed. It may also outline what the consumer is required to do in order to prevent the malfunction of a product. If the specified conditions are not met, the guarantee may be voided.
Conditional agreements often apply to automobile warranties. For example, a service guarantee for an engine may require scheduled maintenance at regular intervals, such as changing the oil change every three months. If the engine were to malfunction as a result of the oil not being changed on schedule, the guarantee could be canceled. It is important for a customer to follow the provisions provided.
A number of industries incorporate a service guarantee in the sale of their services. For instance, dry cleaning business may promise that clothing will be clean and ready within 24 hours, and a pest control company may offer assurance that bugs will not enter the home after extermination. Many times, a service guarantee offers the customer a refund if the client is dissatisfied.
A money back guarantee is sometimes offered to encourage a customer to purchase a product. If the consumer is disappointed with the item, he or she can usually return it for a full refund. This is designed to combat the customer hesitation, and make him or her feel that there is nothing to lose by purchasing the item.
A price guarantee is usually made when a company wants to convey that their product will cost the same, or less, than the exact item sold someplace else. Often this provides for a cash refund of the difference, if the same item is found at another store for a lesser price. A business usually advertises this offer to help the consumer feel confident that they are not paying too much.