With the current inflation rate averaging 7.9%, it’s the highest in more than 40 years. Consumer confidence is waning, and buyer’s remorse is setting in for many customers.
According to recent research conducted by Duke University’s Fuque School of Business, shopping may not be providing the mood boost that people seek.
The study of more than 25,000 consumers found that as more people feel financially stressed, they are increasingly likely to regret making a major purchase of an appliance or television.
Homeowners have spent $68 billion repairing or replacing damaged appliances, another recent survey showed. And fully 95% of American homeowners report having had a major appliance die or stop working.
In fact, the more economically constrained the consumer is, the less happy they are with their purchase. After buying products that cost more than $100, consumers say they worry that it won’t last or just wasn’t worth the investment of precious funds.
With those stats in mind, savvy retailers and manufacturers should offer their customers hassle-free product protection to ensure buyers have peace of mind if their treasured investment breaks and needs repairs.
The most frequent appliance malfunctions were with washing machines (29%) followed by 27% of refrigerators, freezers or ice makers, 16% of dryers and 14% off dishwashers, the survey showed.
And 55% of homeowners spent an average of $713 each repairing or replacing broken appliances. That’s an increase of more than 30% from costs just a few years ago.
Besides repair and replacement expenses, 39% said they had to throw away food due to a damaged refrigerator or freezer, which led to American homeowners throwing away more than $14 billion worth of spoiled food.
Every homeowner knows that when products break, it can be costly, time-consuming and aggravating to try to find a reputable repair service. And there’s certainly no guarantee that you’ll be able to get an appointment quickly or find an appropriate service window.
Another frustration is time spent without a functioning appliance that the family relies on like a washer, dryer or refrigerator.
Just over half (52%) of the appliance malfunctions occurred within the first five years of purchase. The leading issues were complete failure to work, electrical malfunctions, and performance issues.
Of the homeowners surveyed, 61% of those with damaged appliances said they would have purchased a protection plan for their appliance if they could go back in time.
Centricity provides product protection for retailers and manufacturers that want to offer their customers extended service contracts that take the worry out of their buying journey.
Centricity partners with retailers and manufacturers to provide customized product protection solutions that drive revenue and result in loyal, happy customers. If you want to learn more about product protection plans and customized implementation and training for your team, contact us today.