Explain the term guarantee and analysis of claim.

Ans. Guarantee: the guarantee of quality is primarily meant to protect the customer, should the product purchased by him turn out of be defective. This often takes the form of an undertaking by the selling company, that it will replace the article free of charge or refund the money if the product is found to have any defect attributable to improper materials or faulty manufacture. Producer often use guarantees to convince customers about the quality of their products. Therefore, guarantees which are given to a product must be carefully considered in relation to the quality inputs. A guarantee card has following terms:
  1. Period of validity.
  2. Liability of the manufacturer. 
  3. Procedure of submitting guarantee claims.
  4. Conditions which make the guarantee invalid.

Analysis of claim: the adjustment of guarantee claims is generally the responsibility of sales department. Since the investigation of complaints involves thorough technical knowledge of the product, this task may be entrusted to the service engineers who form part of the sales department. Alternatively guarantee claim may be investigated by the minor claims being settled by the regional service centre and major ones being referred to the central quality department. Whatever procedure is adopted, it should be simple and should ensure that the claims are speedily decided. Nothing is more frustrating to  a customer than a protracted correspondence about the adjustment of a guarantee claim.