Departmental Bulletin Paper Gender Differences in Extended Warranty Purchases : The Case of Electronic Products

ADACHI, Takanori  ,  KATO, Ryo

66 ( 1 )  , pp.1 - 14 , 2018-06-30 , 名古屋大学大学院経済学研究科
Are women more likely to purchase an extended warranty? In this paper, we study in-store sales of extended warranties for electronic products, and find that gender and income matter: female consumers from low-income households are more likely to purchase an extended warranty, although few gender differences exist for middle- and high-income households. It is also found that the gender gap in extended warranty purchases is more apparent in the case of personal computers than in the case of cathode ray tube televisions. This finding suggests that gender may matter more in extended warranty purchases for more mechanical products. We also argue that our empirical results may suggest that advantageous selection prevails in the extended warranty market for personal computers.

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