A new product is advertised on the "infomercials" as being "the best cleaner money can buy" and "if not completely satisfied, return the product for a full refund, including shipping." The strategy to use a strong guarantee in this instance is "sound" because
A) the product is so superior to competition that there will be no claims for refunds.
B) it is an example of a misleading or false advertising and is illegal.
C) for a product that is not too well known it is "good advertising" because the claims will be a small percentage of sales.
D) it is just "advertising fluff" and the manufacturer has no intentions of refunding money.
E) for a product that is not too well known it reduces the buyer's perceived risk in purchasing.

Question

Quizplus · Accepted Answer

The strong guarantee of a full refund including shipping reduces the perceived risk of the buyer in trying out a new and relatively unknown product. This increases the likelihood of purchase and can lead to higher sales.

A New Product Is Advertised on the "Infomercials" as Being