The last few years have witnessed a new trend in the technology industry, where consumers throw caution to the wind and instantly embrace the latest technology. This phenomenon is also observed every time Apple releases a new product, as throngs of loyal patrons queue up on the release date to grab it first. According to Forrester Research (News - Alert), these early adopters are driven by three main factors: risk taking, information gathering, and status seeking.
On the basis of this latest trend, Assurant Solutions carried out a survey to highlight the mindset of early adopters of technology. For the uninitiated, Assurant Solutions offers customized extended warranty plans for consumer electronics, appliances, jewelry and other products.
The survey by Assurant Solutions is quick to point out that most adopters don’t rely on luck, but on extended warranties. According to the survey, 49 percent of early adopters said they always purchase an extended warranty when presented. Also, 91 percent of early adopters have been known to purchase at least one warranty for a gadget or a major appliance, compared to 71 percent of early adopters and 63 percent of those who wait to see how the technology performs.
Joe Erdeman, president of Assurant Solutions' extended service contract business, said, "Today's new consumer electronics and appliances have become more sophisticated and therefore more difficult to self repair. Early adopters and other consumers rely on extended service plans as a safeguard if there's a problem after the manufacturer's warranty expires."
"If I love this thing so much, and it's still going to be the love of my life in 90 days, I'll go ahead and protect my investment," said Rod Allen, a Nashville, Tenn., software developer who once dropped and splintered the screen of his new Android (News - Alert) smartphone soon after its purchase.
"If it's going to be the latest for a while, then I have to be relatively confident in its longevity," said Allen. "That's where the extended warranty comes into play."
Extended warranties are often purchased for home appliances like washing machines, freezers, etc., as well as for consumer electronics like flat panel or high-definition TVs, desktop computers, laptops, tablets etc. The plans generally cover normal wear and tear plus accidental damage and sometimes even offer 24-hour technical support and remote diagnostics.