Market After-sales Service: Warranty Practices in the Retail Market This Technical Note provides a snapshot of existing warranty practices in the retail chain Intelligence in Tanzania along with suggestions on ways to offer a more effective warranty. These Note findings are based on surveys conducted with 149 retailers in April and May 2013. The information in this article builds on previous Market Intelligence Notes. See also: Issue 4 Nov. 2013 http://www.lightingafrica.org/resources/market-research/-market-intelligence.html Introduction The retailer interview involved questions about current warranty practices and identified companies that are This is the second in a series of notes designed to effectively offering after-sales service in the market.2 provide guidance to manufacturers and distributors of modern off-grid lighting products for after-sales service, Though we found no companies with warranties that maintenance, and warranty practices. 1 Servicing were consistently honored, we identified several warranties in rural African markets where the customer companies that had more effective warranties than base is widely distributed, warranties are not most: Nokia, Samsung, Boss, Tecno, itel, Pinetech, commonly honored, and both product costs and sales Tronic, and a few Lighting Africa Associates.3 All of are low is extremely challenging. these companies advertised their warranties with consumer-facing information and many provided This note presents information from short interviews contact information with their products. Following the with retailers in six different towns in the Kilimanjaro retailer surveys, we were able to meet with and Morogoro regions of Tanzania. We interviewed management or distributors from most of these 149 retailers who offer products with a market similar companies to conduct more in-depth interviews about to that of solar lamps (Figure 1). their after-sales service. Out of the 149 retailers interviewed, 73% stated that they offered a warranty on at least one product in their shop. Unfortunately, many of these retailers did not honor all of the manufacturers’ warranties in their shop, make use of manufacturers’ after-sales service systems, or honor the full length of manufacturers’ warranties. Further, of the 41 shops that stated they did not offer a warranty on any products, 32 of the shops sold products that explicitly carried a Figure 1. Research assistant Samiah Mshasha discusses 2 Lighting Africa consultants, Jeffrey Jessey and Samiah warranty terms with a retailer. Mshasha, conducted all interviews with support from Meg Harper. Meg Harper and Dr. Arne Jacobson conducted data The sample included shops that sold mobile phones, analysis and authored this note. Details on the towns and electrical supplies, electronics, hardware supplies, methods used in the study are included in Appendix A. 3 electrical appliances, computers, and solar equipment. Nokia, Tecno, and itel are all mobile phone manufacturers, Samsung offers mobile phones and a range of electronic appliances, Boss offers refrigerators and small appliances, 1 No distinction is made between warranties and guarantees Pinetech distributes electronic and household appliances and in this note. The term warranty is used to broadly refer to Tronic carries a range of electrical supplies. The Lighting the practice of replacing or repairing a defective product. Africa Associates primarily offer solar lighting products. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 manufacturer’s warranty.4 This note first presents the cases, the retailer would not take advantage of the explanations retailers gave for why they do not offer or manufacturer’s warranty system and would instead honor warranties. This list of barriers is followed by replace or repair products for customers directly at the advice from retailers and distributors on how to retailer’s own expense. In fact, less than 50% of the overcome these obstacles to ensure that customers can products that retailers said customers returned to the effectively access a warranty.5 Finally, a discussion of shop were then returned to their distributors. the importance of product quality and customer- friendly instructions for use and care is included, as this Retailers provided many reasons they did not offer a was repeatedly mentioned by retailers and distributors warranty or did not take advantage of the as the primary way to avoid having to service a manufacturer’s warranty. The five primary reasons are warranty in the first place. presented here and discussed in more detail below.  Distributors or wholesalers do not offer a Barriers to Servicing Warranties warranty. This was the most common reason Many retailers are motivated to offer some form of a provided and was cited even for products that warranty to indicate the quality of their goods and carried a clear manufacturer’s warranty. encourage customer trust in their shop. Additionally,  Returning products is too difficult. this study suggested that retailers are more likely to  Warranties take too long. honor a warranty on products that displayed a  Customers do not know about warranties. consumer-facing manufacturer’s warranty, but that  Warranties are complicated and lead to retailers commonly offered return policies on products arguments with customers. without manufacturer’s warranties as well. Recommendations for Effective Service Unfortunately, because of the difficulties and costs associated with providing warranties, 27% of the In addition to identifying the barriers to providing retailers surveyed did not offer warranties on any effective warranties, retailers provided a number of products and many others offered return policies with suggestions for how to overcome these barriers. very short time periods. One common practice was for Additionally, distributors and service center managers the retailer to offer a warranty period of one week or for manufacturers who offer relatively effective one month, even in cases where the manufacturer’s warranties provided insights into ways companies can warranty was for two years or more. In many of these improve their warranty practices. 4 Barrier #1: Distributors do not offer a warranty These findings are particularly relevant to Lighting Africa; in the 17 shops we found selling quality-assured solar lighting The primary reason retailers stated that they either did products, only 41% of these shops honored warranties on not offer a warranty or did not honor the full length of these products. a warranty was because their distributor did not offer 5 We recognize that much of the off-grid lighting activity in them a warranty. This issue occurred for products with Tanzania currently relies on rural distribution models through consumer-facing manufacturer’s warranties as well as schools, churches, and community groups rather than the traditional retail chain. Though much of this research was for products without an obvious manufacturer’s conducted with players in the retail chain, many of these warranty. At times, the issue appeared to be the fault recommendations will be applicable to vertically integrated of an unscrupulous distributor, but in other cases, the rural distribution models as well. retailer simply was not aware that the distributor © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 offered a warranty or was too intimidated to ask. communicate the warranty process to retailers and Further, the more intermediaries that came between a customers. country-level distributor and the end-consumer, the less likely it seemed that a warranty would be honored. Another method used by manufacturers and high-level distributors is to build relationships with their With this understanding, to ensure that customers can wholesalers, distributors, and retailers. Several access a warranty, they need a way to bypass companies stated that they visited lower-level intermediaries in the retail chain. Providing customers distributors and retailers to educate them about sales with in-country contact information for the company, and warranty practices. Creating a direct connection associated distributors, or service centers will enable between the company and the retailer helps ensure customers to bypass noncompliant retailers and that retailers know that a warranty is genuine and distributors and more easily access services. Some understand the process to access the warranty. Some solar lamp distributors include stickers with their phone manufacturers or high-level distributors further used number, email, website, and physical address on every these opportunities to encourage retailers to offer product. Other companies widely advertise the phone warranties to their customers, provide the retailers number and address of their service centers both on with advertising supplies, educate retailers or product packaging and promotional posters. distributors on product features and repair, check on product displays, collect data on product sales, and A key requirement for providing in-country contact transport products for repair or replacement. information is to have at least one representative in each country where a company’s products are Barrier #2: Returning products is too difficult distributed. Depending on the company’s size and Transporting products is a major obstacle to effectively distribution model, this representative could range servicing warranties. Most retailers said they could from a single individual to a larger office or service ship products by mini-bus, bus, or truck, which would center. A well-advertised and stable point of contact cost between US$ 6-20 roundtrip, depending on the should additionally have interest in protecting the size and value of the product (Figure 2). This shipping company’s brand by offering effective after-sales cost is often greater than the purchase price of lower- service. Further, primary in-country contacts should cost solar lighting products, making product returns speak regional languages so that they can uneconomical. Figure 2. A bus station in Moshi and a supply truck in Ruaha. Common ways of transporting individual products in Tanzania include sending them as cargo on mini-buses or buses, or adding them to a shipment of goods on a lorry truck. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Retailers and distributors provided a number of specialized knowledge of an electronics technician may suggestions for ways to minimize the impact of often be useful, some solar lamp distributors have shipping cost when servicing warranties: found that technically-minded employees can be trained to do most solar lamp repairs.  Trouble-shoot problems over the phone  Train local technicians, retailers or distributors Some larger companies, such as Tecno, itel, and  Establish regional service centers Samsung, have also established regional service  Set up regional collection points centers to minimize shipping distances for product  Permit retailers to make immediate exchanges repairs. These companies suggest locating service with customers so that products can later be centers in areas with high sales volume and in areas exchanged with suppliers on stocking runs that maximize accessibility to isolated markets. Service  Offer wholesale pricing that includes a centers can again make use of either local technicians warranty discount or provide extra stock to or trained distributors. encourage the retailer to handle the warranty Local collection points can also help ensure that directly without returning products through the customers have a low-cost way to return products to a supply chain manufacturer while potentially bypassing the retail  Include technicians in road shows to enable chain. Collection points could be trusted repair of products in rural areas retailers/distributors that can either return products as they are received or accumulate products to return as a Many solar lamp distributors and mobile phone single shipment or on their stocking runs. The choice of companies suggested that the most practical way to which of these methods is acceptable will depend on provide after-sales service is over the phone. While the desired turnaround time for the warranty. this will not eliminate the need to provide physical repairs or replacements, in practice, a large portion of If the warranty offers replacements rather than repairs, issues can be solved by trouble-shooting over the a particularly cost-effective way to minimize shipping phone with either the customer or retailer/distributor costs is to permit retailers to make instant exchanges. without requiring products to be shipped back and This practice enables to retailer to hold on to defective forth. When working with low-income rural customers, products to return on their normal stocking run while many distributors recommend having a mobile phone still fulfilling the customer’s warranty claim in a number where customers can either SMS or call and reasonable time period. Though this practice is hang up (flash or miss-call) to request a call back. convenient, it requires that retailers can trust that a manufacturer will accept a given return and that Distributors also recommend training local technicians manufacturers/distributors feel confident in the or local sales staff in basic repairs and trouble- retailer’s honesty and judgment. A “no-questions- shooting. Proper execution of this method would asked” warranty, which covers any defective product, further require supplying these technicians with spare including cases of user error, can best instill this trust in parts and updated technical information, as well as the retailer and eliminate the need for distinguishing a making products easily repairable. A more thorough manufacturer’s defect from other modes of failure. look at local electronics technicians’ experience with Anecdotes from distributors suggest that offering and solar lamps and interest in working with companies is honoring a “no-questions-asked” warranty can also provided in Market Intelligence Note 3. Though the serve as an extremely effective marketing tool. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Alternatively, some retailers stated that their service centers recommend having manufacturers ship distributors offered them discounted pricing or extra common spare parts, especially batteries, along with stock, which compensated the retailer for offering a product shipments. Further, they suggest that when a warranty. This system greatly simplifies the warranty product model changes, repair centers should prepare process, but would not provide the manufacturer/ by ordering sufficient spares to cover any future returns distributor with feedback on product quality and would of the old model that is still under warranty. Mobile need to be monitored to ensure that retailers are phone service centers stated that when spares are providing the warranties they claim to be. available, their technicians are typically able to provide same-day repairs. This same-day repair service is A final method used by some solar distributors to especially important for customers or retailers traveling address the barrier of shipping costs is to send a from a distance. technician along on road shows and consumer outreach events. The technician can help explain Barrier #4: Customers do not know about proper use and care of products, install products in warranties homes when appropriate, and service any products Some retailers stated that they did not offer warranties already in the field. Additionally, the generator used because customers did not know that about warranties for the road show can also provide for soldering and and did not ask for warranties. In some communities, other electrical needs for repairs. the concept of a warranty is relatively new, yet many retailers suggest that warranties are highly desirable. Barrier #3: Warranties take too long One distributor of solar products noted that after Many retailers stated that a reason they or their honoring a “no-questions-asked” warranty for a customers chose not to return a defective product to a teacher with a broken solar lantern, the positive word- manufacturer was because the process would take too of-mouth resulted in an effective advertisement and long. In these cases, the customer would often either created demand from an entire network of teachers pay for the repair locally or purchase a new product. who now felt confident to purchase a solar lamp. Many of the suggested ways to speed the warranty process echo the suggestions to minimize shipping As warranties can serve as an effective marketing tool, costs. retailers should be encouraged to tell customers about the warranty policy. For retailers to feel comfortable Creating a system where retailers can instantly replace promoting the warranty to customers, they would need the product for the customer offers the fastest to be certain that the warranty is genuine and can be warranty service. As previously mentioned, these easily serviced. Educating distributors and retailers systems include offering discounted pricing or extra about the warranty policy can help them understand stock to retailers, or ensuring retailers that returns will the warranty procedures and share this information be honored so that they can feel confident immediately with their customers. replacing a defective product. Many companies advertise their warranty to ensure If a repair-based warranty is favored, keys to providing that customers are aware of this added-value. In fast service include minimizing shipping time and addition to including warranty information on product providing a quick turnaround at repair facilities. packaging, some companies further advertise with Ensuring that spares are readily available for quick posters, flyers, printed decorative tape, window decals, repairs requires forethought. Many distributors and and stickers as well as in newspaper and radio ads. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Announcements during road shows and consumer Providing a clear understanding of whether a product outreach events offer another opportunity to create falls within the warranty period can also help avoid awareness. disputes. Establishing a purchase date can be particularly difficult because receipts are not often Barrier #5: Warranties are complicated and lead used.6 Several companies and retailers provided ideas to arguments with customers of how to establish a purchase date without necessarily Some retailers chose not to offer warranties simply to requiring a receipt. avoid future conflicts with customers. By making “all sales final,” the customer had no basis to argue over a Samsung uses a system where customers can register failed product. Though it may be difficult to convince a their mobile phones by sending a text message at the retailer with this mindset to offer a warranty, several time of purchase. The system tells the customer that ways exist to potentially address this issue. they have purchased a genuine product and tells the customer that they have a 24-month warranty, while As previously discussed, good practices include simultaneously logging the customer in their worldwide educating the retailer about the benefits of offering a online database. All Samsung service centers have warranty, ensuring that warranties can be honored at access to the database and can tell whether a product low cost in a reasonable time period, and, if possible, is under warranty or not. permitting “no-questions-asked” warranties. A lower-tech method of collecting product registration To further minimize potential conflicts between a information is to include a warranty card with the retailer and customer, all warranty information should product. In addition to providing clear information be presented in simple terms in a regionally- about the warranty, a portion of this card can be filled appropriate language and retailers should be out and either kept by the retailer/distributor or sent to encouraged to discuss the warranty terms with a representative of the manufacturer or service center customers prior to purchase. (Figure 3). to be entered in a company-wide database. Manufacturers or distributors can offer incentives to retailers/distributors to fill out and send in warranty cards to provide a record of purchase dates. Some retailers were doing an even simpler version of this by creating warranty cards or a purchase log for their shop in which they recorded names, product serial numbers, and purchase dates for reference should a customer have a warranty complaint. Some companies instead base their warranty period on the model of the product. In cases where the product models change routinely and sell rapidly, these Figure 3. An appliance manufacturer, BOSS, found that translating their warranty card and terms into Swahili increased understanding of the warranty and reduced the 6 number of disputes related to ineligible returns. In Tanzania, an 18% VAT is charged on many products and assessed through official receipts. To avoid paying this fee, a common practice is to not offer or ask for a receipt. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 companies are able to assess whether a certain model Other distributors said they ensured their products is likely still within its warranty period. were good-quality by tracing the supply chain back to the manufacturers. Identifying quality manufacturers Other companies stated that to minimize disputes and in China involved working with certified facilities, promote customer loyalty they repair any genuine following European supply chains to locate factories product, regardless of whether it still falls within the with good quality control and using consultants, such as warranty period. Several retailers and distributors SGS, to verify manufacturing quality. stated that most people do not abuse the warranty system and that being more lenient in servicing In addition to checking the quality of the supply chain, warranties helps to protect the brand. distributors also recommend checking products for common failures before selling to retailers or end- Data from the retailer interviews supports this idea by consumers, both to minimize warranty claims and to suggesting that, aside from cases of widespread improve the company’s image. manufacturing defects or obvious product flaws, rates of return are low for most consumer goods.7 The retail Solar lamp distributors in particular emphasized that shops interviewed stated that they received an average consumer education and, when appropriate, in-home 4 returns per month across all of their products, while a installation of products at the time of purchase few retailers and distributors quoted an average return prevents most after-sales complaints. Distributors rates ranging between 0.01% - 1% of total sales. One found that training dealers or technicians additionally medium-scale distributor of quality-assured solar lamps enables the dealers to properly instruct customers on stated that in the past 5 months they had had only 15 installation, use and care of the lamp, and, if products returned, while another quoted a rate of 170 installation is offered as an optional service, the service repairs in the past 3 years. provides technicians with an extra source of income. Proper installation includes the placement of solar A Preventative Solution: Provide High-Quality panel, hanging lights so water doesn’t enter, running Products and Ensure Proper Use and Care wires so rats are less likely to chew on them, and Retailers and distributors both emphasized that the demonstrating basic functions and troubleshooting best way to minimize after-sales issues is to improve techniques. the quality of your products. The solar lamp distributors we interviewed stated that they only dealt Conclusions with products that had been verified by Lighting Global Quality Assurance. Similarly, many retailers suggested Warranties can offer benefits to stakeholders that instituting effective government regulations on throughout the retail chain. Warranties that are product quality would allow them to offer higher- implemented effectively can promote sales and brand quality products and be more confident in their sales. loyalty, indicate the quality of goods, and encourage consumer trust in a product, shop, or distributor. Warranties further offer a way to monitor product quality. Manufacturers, distributors and retailers can 7 Manufacturing defects refer to cases of an entire shipment use this direct feedback from customers to improve including units with a failed component, while product flaws manufacturing processes, evaluate suppliers, and make suggests poor product design, such as a solar lantern found better purchasing decisions. in the market that was designed without a blocking diode, which allowed the batteries to discharge every night. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Unfortunately, warranties can be difficult to effectively  Advertise the warranty and encourage retailers honor in the retail chain, as distributors and retailers do and distributors to tell their customers about not always offer the full warranty, product returns are the warranty. often expensive and time-consuming, and both retailers and customers are not always aware of  Offer a “no-questions-asked” warranty to avoid warranties and effective ways to access them. disputes in distinguishing between manufacturer and customer fault. This note provided a list of suggestions provided by retailers, distributors, and service centers on how to  Present warranty terms in simple, regionally best provide effective warranties. These included: appropriate language.  Provide a way for customers to bypass the  Create a clear system for determining whether retail chain and reach an in-country company a returned product is still within the warranty representative who has interest in protecting period. the brand by offering after-sales service and  Repair or replace any genuine product, speaks regionally appropriate languages. regardless of the warranty period.  Check in with distributors and retailers further  Offer good quality products. down the retail chain to establish a relationship and explain warranty practices.  Encourage retailers and distributors to educate customers as to proper use, care and  Enable troubleshooting of product complaints installation of products. over the phone. While all of these suggestions are in use by one or more  Train local technicians or technically minded companies, not all of these recommendations will be retailers and distributors in basic product appropriate for every manufacturer, product, or repair. distribution strategy. Though not universal, we hope  Establish strategically located regional service that some of these resonate with your business and centers and local collection points. enable you to offer more effective warranties.  Permit retailers to make instantaneous exchanges by assuring that they will be able to return the product or by offering discounted pricing and/or additional stock.  Send a technician along on road shows and consumer-outreach events to offer repair services.  Provide a quick turnaround at repair facilities by guaranteeing trained staff and adequate spare parts. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Appendix A: Methods Surveys were conducted in six towns in Tanzania (Figure 4). Three towns were selected from each of two different regions to incorporate both regional diversity and differences in population size in the sample. Each of the towns was large enough to have a central retail area, yet all towns were distant enough from each other so that their markets and clientele were distinct. Representative pictures of the towns are presented in Appendix B. Interviews with retailers were conducted in Moshi, Same, and Himo in the Kilimanjaro Region and Morogoro, Ifakara, and Ruaha in the the Morogoro Region. Moshi is the most populated town in the Kilimanjaro Region, which is the most electrified region of the country. Himo and Same are both smaller towns located near the highway between Moshi and Dar es Salaam. Morogoro is the sixth largest municipality in Tanzania and has a thriving retail sector. The town of Ruaha is located next to the Kilombero Sugar Company plantation and is therefore often referred to as Kilombero. Ifakara serves as the headquarters for the Kilombero district and has a relatively large population and retail area, despite only being accessible by dirt road and the Tanzania-Zambia railway. Population estimates from the 2012 Tanzania Census are listed for each town in Table 1. Table 1. Towns in sample (Tanzania Census 2012). Figure 4. Towns in Tanzania where retailer surveys # of were conducted. The purple dots indicate the larger Approximate Region Town shops towns, the green dots indicate the medium size Population surveyed towns and the yellow dots indicate the small towns Moshi 144,000 39 surveyed in each region. Included for reference are Dodoma, the capital of Tanzania, and Dar es Salaam, Kilimanjaro Himo 22,000 26 the largest city in Tanzania. Additional interviews Same 9,000 13 with distributors and service centers were Morogoro 316,000 33 conducted in Dar es Salaam (and Nairobi, Kenya). Morogoro Ifakara 56,000 22 Black lines show the major roads connecting each of Ruaha 28,000 16 the towns. In the larger towns of Moshi and Morogoro, areas of town with high densities of retail shops were selected for the study. In the smaller towns, the study included the entire “urban” region of the town. Once study areas were delineated, all shops selling mobile phones, electronics, appliances, hardware supplies, solar equipment and electrical supplies in the study area were approached (Figure 5). Shops or street vendors selling low-cost, disposable, or consumable goods were not included in the sample. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Figure 5. A display of the diversity of shops interviewed. Clockwise from the top right is an appliance shop, a mobile phone shop, an electrical supply store, and a general shop selling appliances, electrical equipment, and housewares. The interview asked retailers about current warranty practices including whether they offer a warranty, who services their warranties, how long the service takes, and how common it is for customers to use the warranty. An example of the semi-structured interview form is included in Appendix C. © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Appendix B: Images of Towns Included in Survey Below are pictures of the surveyed towns to help provide context for the study (Figures 6-11). These are the same images as those presented in Technical Note 3. Tanzania Kilimanjaro Region: Moshi, Himo and Same Figure 6. Retail mall and busy central street in Moshi, Tanzania. (Picture credits Maina Mumbi) Figure 7. Both the central town of Himo and the roadside area called Himo Junction were included in the Himo sample. (Picture credits Meg Harper) Figure 8. The main street and bus station in Same. Same was the smallest town sampled in Tanzania. (Picture credits Meg Harper) © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Tanzania Morogoro Region: Morogoro, Ifakara and Ruaha/Kilombero Figure 9. Major retail areas of Morogoro. Morogoro was the largest municipality surveyed during the study. (Picture credits Maina Mumbi) Figure 10. The main street and market area of Ifakara. (Picture credits Meg Harper) Figure 11. The main street of Ruaha/Kilombero. Most commercial activity in the town occurred along the main street or in a small market on the side streets. (Picture credits Meg Harper) © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Appendix C: Semi-structured Interview Form The semi-structured interview below was administered to retailers of consumer goods in Tanzania. Every retailer was first asked if they offer warranties on any products. If they did offer warranties, the full interview was conducted, if they did not, prior to ending the interview, they were asked why they did not offer warranties. Participants were presented with an information sheet explaining the purpose and background of the study and asked to give verbal consent to participate in the study. Retailer Warranty Interview Surveyor Name(s)___________________________________ Observed Data: Date Town Shop Name Location GPS Point # Shop Type Mobile Phone[1] Electrical/Electronics[2] General Shop [3] Supermarket [4] Hardware [5] Solar [6] OTHER [7]___________________ Shop Type Shop[1] Kiosk [2] Market Stall [3] Table [4] Hawker [5] OTHER [6] Offer off-grid lighting products? N [0] Y [1] Offer solar-powered off-grid lighting products? N [0] Y [1] Offer quality-assured solar products? N [0] Y [1] 1. Do you offer warranties on any products? N [0] Y [1] If Yes, present introduction and conduct interview. If No, ask 1A and then end interview. 1A. If not, why not? © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 Shop Name Contact Box # Information Phone # Email # Employees 1-2 [1] 3-5 [2] 6-10 [3] 11+ [4] Interviewee Name Gender M [1] F [2] Position Owner [1] Worker [2] Other [3] 1. What products do you sell that come with a warranty? Product Type Brand Length of Warranty 2. How do you service these warranties? (IF the retailer offers multiple warranties, ask about the two most commonly used. Get as much detail as possible: Are products repaired or replaced? How are products returned to the company or distributor? Who pays for the return?) © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 3. Do you think these are good warranty plans? Why or why not? 4. On average, for each warranty, how long does it take for a customer to receive either a repaired or new product after returning a product? 5. In an average month, how many products do customers return to your shop? 6. In an average month, how many products do you send to manufacturers or distributors to redeem a warranty for the customer? 7. In cases where the product is not returned to the manufacturer or distributor, why is it not returned? (Check all that apply). The product was damaged from user error, which voided the warranty The customer does not want to wait for the warranty service Customer chooses to pay for the product to be fixed here The customer chooses to purchase a new product instead The customer chooses to re-sell the product to your shop instead I (the retailer) replaced the product without redeeming the manufacturer’s warranty The distributor/manufacturer does not honor warranty Other: © Lighting Africa – November 2013 After-sales Service: Warranty Practices in the Retail Market Issue 4 November 2013 8. What do you think could be done to improve warranty services in Tanzania? 9. Do you sell any solar off-grid lighting products? a. Are you interested in selling solar off-grid lighting products? © Lighting Africa – November 2013