Recent Research Shows That the Amount of a Guarantee Payout

Multiple Choice

Recent research shows that the amount of a guarantee payout has no effect on consumer cheating. Which of the following is one of the important managerial implications of this?

A) Guarantees can be restricted to new customers because of the propensity for repeat customers to cheat.
B) Guarantees can be kept low to prevent rewarding cheaters.
C) Managers can reap the marketing rewards of higher guarantees without increased payouts due to consumer cheating.
D) Managers cannot expect to recover the difference in guarantees for different types of consumers.
E) Guarantee levels can be used to dissuade consumer cheating.