Research On Extended Warranty Service Of Company K

Originated from America, the extended warranty service was introduced to China in 2006. In developed countries of Europe and America, the extended warranty service has high acceptability and huge transaction scale. However, in China, just at starting stage, the extended warranty service has low consumer awareness. While the potential market is huge, for example, the purchase rate of extended warranty service has reached the level of America and Europe, only the field of home appliances has the scale of tens of billions dollars every year. In China, although more and more enterprises are engaged in warranty service of home appliance, there are few companies which have formed the brand effect and have been widely acknowledged by consumers; what’s worse, determination of warranty service nature and regulation are not yet mature in China, which is not conducive to the healthy development of the market.As a national home appliance chain enterprise with after-sale service, company K develops rapidly in the business of extended warranty service. With the background of the home appliance manufacturing, Company K sells its extended warranty service independently, and has a strong ability to provide repair service. In the typical mode of extended warranty service, company K basically covers all the main links. Through the methods of literature review, interviews, and analysis of company’s internal material, this paper sorts out each link and operation mode of extended warranty service; through analyzing the development and sales process of company K’s extended warranty service products, this paper makes a systematic summary of the following aspects: types of warranty products, pricing of extended warranty service, planning of service providing, core factors affecting warranty products, channel selection, enterprise internal management platform, management of sales personnel, and this paper provides reference to other enterprises with extended warranty service.At present, the Internet, the Internet of things, intelligent home appliance and big data technology develop swiftly and violently, which affects the product design, marketing mode, channel selection, and after-sale management of physical products. As an auxiliary service product of physical products, extended warranty service is also affected by new technology. Through analyzing the existing problems of company K’s extended warranty business, this paper summarizes the factors which influence extended warranty service in the future and puts forwards some suggestions.