Final answer:
Companies often establish a service contract policy to extend their support for products beyond the warranty period. This provides a way to manage the effects of planned obsolescence and assures customers by promising to fix or maintain the product for a specified period of time.
Step-by-step explanation:
When dealing with unsupported products, some companies establish a service contract policy, with an established time limit for assisting customers. A service contract is an agreement where the company commits to repairing or maintaining a product beyond its original warranty, typically for an additional cost. This contract may cover a specified period of time during which the company agrees to fix any issues that arise with the product.
This practice can be seen as a response to the concept of planned obsolescence, where products are designed with a limited useful life, encouraging consumers to purchase new models sooner. By offering service contracts, companies can provide a form of reassurance to customers, maintaining a relationship with them even after the standard warranty period has ended. This approach can be particularly beneficial in cases where the cost of repairs could incentivize customers to discard the product and purchase new ones, as service contracts can mitigate those costs and extend the usable life of the product.