When Clean Machines offered warranties for dishwashers, this represents:

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The act of offering warranties for dishwashers by Clean Machines is an example of risk transference. When a company provides a warranty, it essentially shifts the financial risk associated with potential product failures or malfunctions from the customer to itself. By doing so, Clean Machines takes responsibility for addressing any issues that arise during the warranty period, effectively transferring the risk of loss or damage from the consumer to the business.

This is a common practice in consumer goods industries, as warranties help to build consumer trust and enhance the product's appeal. Customers are more likely to purchase a product when they know they are protected against certain risks, as the company assumes the risk of repair costs or replacements, should they arise.

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