Copyright: Wyższa Szkola Logistyki, Poznań, Polska Citation: Najmi A., Haq M.A., Majeed S., Khan N.R., 2014, Effects of product's warranty on customers' preferences: empirical findings on reverse logistics models. LogForum 10 (3), 305-317 URL: http://www.logforum.net/vol10/issue3/no7 Accepted: 13.05.2014, on-line: 30.06.2014. LogForum > Scientific Journal of Logistics < http://www.logforum.net p-ISSN 1895-2038 2014, 10 (3), 305-317 e-ISSN 1734-459X EFFECTS OF PRODUCT'S WARRANTY ON CUSTOMERS' PREFERENCES: EMPIRICAL FINDINGS ON REVERSE LOGISTICS MODELS Arsalan Najmi, Mirza A. Haq, Sohail Majeed, Naveed R. Khan Iqra University, Karachi, Pakistan ABSTRACT. Background: IT products are now becoming the part of every one's life. Since Pakistan didn't manufacture IT products, so the customers had to purchase the products that are available in the markets. During such purchase, customers not only gave preference to brand or price or both but they also consider its warranty so that they are secured with the post purchase risks. Methods: This study was aimed to identify the impact of the warranty on customers' preferences towards brand and price. A conceptual framework was made on the basis of available literature and then data was collected. It was collected from 298 respondents through survey questionnaire and after applying Factor Analysis, One Way MANOVA was applied on the factors. Results and conclusions: The study found that the product's warranty has a significant impact on preferences towards brand, concern for price and price intentions whereas the impact on willingness to pay was found insignificant. The results conclude that Pakistani customers need a branded IT product on competitive prices, which give more in less along with the warranty so that they can enjoy the same quality of the product for a period of time whereas, they are not willing to pay any additional amount for the product just because of Warranty. Key words: product warranty, customers' preferences, brand, price, reverse logistics models. INTRODUCTION Purchasing an Information Technology (IT) product is always an excitement for consumers. As the technology is rapidly changing, its products are now becoming the part of every one's life. Customers had recognized the IT products as need and now it is of importance for them to be technologically updated. In order to fulfilling that need, customers had frequent purchase of IT products, so that they can update themselves technologically. With an intense increase in competition by globalization, the availability of variety made consumers indifference between the products. Kilic and Kendirli [2011] reported after collecting the data from 400 university students of Turkey and found that university students prefers global brands specifically related to IT products. This study also reveals the consumer attitude towards the theoretical characteristics of brand personality. Furthermore a positive relationship was also found in the demographic factors of the respondents with their attitudes and preference towards global brands. On the other hand, after analyzing the preferences of the consumers towards eight different product categories, consumers prefer brand and quality of the product which makes them brand conscious