Source

Why Do Consumers Buy Extended Service Contracts?

peer-reviewed retail purchase-data study Chen, T., Kalra, A. and Sun, B. (2009). Journal of Consumer Research, 36(4), 611-623

Claim this source supports

“Shoppers who discovered an unadvertised discount were more likely to spend the savings on a service contract; lower-income and hedonic-product buyers were more likely to purchase plans”

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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…