Labeling

The label can be a simple attached tag or an elaborately designed graphic that is part of the package. A label performs several functions. First, it identifies the product or brand—for instance, the name Sunkist stamped on oranges. It might also grade the product; canned peaches are grade-labeled A, B, and C. The label might describe the product: who made it, where and when, what it contains, how it is to be used, and how to use it safely. Finally, the label might promote the product through attractive graphics.

Labels eventually need freshening up. The label on Ivory soap has been redone at least 18 times since the 1890s, with gradual changes in the size and design of the letters. Legal and regulatory requirements must also be considered. For example, processed foods must carry nutritional labeling that clearly states the amounts of protein, fat, carbohydrates, and calories as well as vitamin and mineral content as a percentage of the recommended daily allowance.19

Warranties and Guarantees

All sellers are legally responsible for fulfilling a buyer’s normal or reasonable expectations. Warranties are formal statements of expected product performance by the manufacturer. Products under warranty can be returned to the manufacturer or designated repair center for repair, replacement, or refund. Whether expressed or implied, warranties are legally enforceable. Guarantees reduce the buyer’s perceived risk. They suggest that the product is of high quality and the company and its service performance are dependable. They can be especially helpful when the company or product is not well known or when the product’s quality is superior to that of competitors.

 
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