What is the main purpose of a warranty in sales?

A warranty serves primarily as a reassurance to the customer regarding the quality and reliability of a product. By providing a warranty, a business demonstrates its confidence in its merchandise, indicating that it stands behind the product and is willing to address any potential issues that may arise after the purchase. This assurance can help to alleviate concerns customers may have about the product's performance or durability, encouraging them to make a purchase with greater peace of mind.

While a warranty may indeed be associated with competitive pricing or could be explained in the context of a company's return policy, these are not the central purpose of a warranty. The core function is to provide customers with confidence in the quality of the product, which is vital in building trust and enhancing customer satisfaction.