The Impact of Unlimited Service Guarantee on Consumer
THE IMPACT OF UNLIMITED SERVICE GUARANTEE ON CONSUMER DECISION MAKING TOWARDS LUXURY HOTEL SECTORS IN ACCORDANCE TO MALAYSIAN CONSUMER PROTECTION ACT 1999 (CPA)
by
Pradeep Paraman
ABSTRACT
A service guarantee is a promise that a service or product will meet certain consumer expecta-
tions or standards. On numerous occasions it is provided to the consumer in writing. Presumptu-
ously assuming that the product fails to perform as promised, the vendor may offer replace-
ment of the item, refund the purchase price, or offer other forms of reimbursement, like a store
credit. The purpose of it is to instill consumer confidence. The disgruntled customer is apt to tell
two to four times the number of people how poor the firm is. The cost of gallant recoveries has
a terrific return on investment (ROI), even more with a service guarantee. Majority of hotel web-
sites provides a "price guarantee” and not a service guarantee. Price guarantee is a reassurance
(supported by a price comparison, extra discounts, credits, free room nights, and other pledges).
The inclusion of provisions relating to a supply of services in the Consumer Protection Act 1999
(the CPA)is very significant in the development of the law of services which previously has not
been encompassed to the law on sale of goods. In conjunction with the aim of protecting con-
sumers against sub-standard, defective or ineffective services, the CPA creates a number of
statutory implied guarantees. The Act also introduces an entirely different remedial scheme for
breach of the guarantees which are supposed to offer new and more practical remedies to con-
sumers.
Adopting the method of content analysis, this paper focuses
by
Pradeep Paraman
ABSTRACT
A service guarantee is a promise that a service or product will meet certain consumer expecta-
tions or standards. On numerous occasions it is provided to the consumer in writing. Presumptu-
ously assuming that the product fails to perform as promised, the vendor may offer replace-
ment of the item, refund the purchase price, or offer other forms of reimbursement, like a store
credit. The purpose of it is to instill consumer confidence. The disgruntled customer is apt to tell
two to four times the number of people how poor the firm is. The cost of gallant recoveries has
a terrific return on investment (ROI), even more with a service guarantee. Majority of hotel web-
sites provides a "price guarantee” and not a service guarantee. Price guarantee is a reassurance
(supported by a price comparison, extra discounts, credits, free room nights, and other pledges).
The inclusion of provisions relating to a supply of services in the Consumer Protection Act 1999
(the CPA)is very significant in the development of the law of services which previously has not
been encompassed to the law on sale of goods. In conjunction with the aim of protecting con-
sumers against sub-standard, defective or ineffective services, the CPA creates a number of
statutory implied guarantees. The Act also introduces an entirely different remedial scheme for
breach of the guarantees which are supposed to offer new and more practical remedies to con-
sumers.
Adopting the method of content analysis, this paper focuses
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