Source

How do people value extended warranties? Evidence from two field surveys

peer-reviewed field surveys Huysentruyt, M. and Read, D. (2010). Journal of Risk and Uncertainty, 40(3), 197-218

Claim this source supports

“Consumers greatly overestimate the likelihood and cost of breakdown; expected emotional benefit was the best predictor of purchase and willingness to pay; purchase depended on magnitude of consequence more than probability”

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Protection Is a Second Purchase — video poster frame

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Protection Is a Second Purchase

An extended warranty offered at checkout is not an extension of the item you just chose; it is a separate product whose value depends on the price of the plan, what the terms actually cover, how likely the item is to fa…