ABSTRACT
The previous chapter examined the significance of signalling theory in the context of manufacturers' guarantees. This revealed that guarantees may only be signals of product quality in certain circumstances. It is therefore reasonable to conclude that the role of guarantees in the pre-purchase context is less significant than often assumed. Therefore, guarantees can only be of limited assistance in providing a solution to the first problem identified in chapter 1, i.e., the difficulty for consumers to ascertain the level of quality to be expected from a particular product.
