Fraudulent consumer behaviour:exploiting retailers’ warranty policies.

• Main Authors: Goh, Wei Ming., Peh, Sze Yun., Lau, Jia Xin.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Marketing::Consumer behavior
• Online Access: http://hdl.handle.net/10356/51590
• Institution: Nanyang Technological University

In Singapore, we encounter various types of publicly-displayed reminders that encourage us to do good and avoid the bad. However, the effectiveness of such reminders has not yet been proven. If the use of reminders is in fact effective, then how so can marketers and retailers use them to prevent consumers from exploiting them through utilization of warranties? To what extent would these measures remind consumers on their moral values even when they are influenced by social influence to behave unethically at times? In this study, we tested the effectiveness of reminders against the presence of social norms, and its suitability in reducing consumers’ unethical behavior in exploiting the use of warranties. We discussed the impact that presence of reminders (positively framed reminder vs. negatively framed reminder), under the influence of different types of social norms (no social norm vs. social norm to cheat vs. social norm not to cheat), has on some variables (e.g. consumers’ tendency to cheat, attitude towards cheating). The results from our survey, done by 169 respondents, demonstrated that the presence of reminders would not only decrease consumers’ likelihood to cheat, but also cause consumers to develop an unfavourable attitude towards cheating. Interestingly, we discovered that negatively framed reminders might serve as a double-edged sword in conditions whereby cheating is socially acceptable. Although it decreases consumers’ tendency to cheat, they did not feel uneasy while making their decision. Our consistent results on other variables also supported this general trend. Therefore, our article paved the way for more interesting research and provide marketers with a cost-efficient solution to prevent consumers from exploiting of the use of warranties.