Which of the following is true regarding warranty programs?

Warranty programs serve as a strategic form of marketing because they communicate confidence in the product and reassure consumers about their purchase. By providing warranties, brands can differentiate themselves from competitors, as a robust warranty signals higher quality and reliability. This sense of security can enhance customer loyalty and encourage repeat business, ultimately impacting sales positively.

In this context, the other options can be considered less accurate. Warranty programs are not legally mandated, meaning businesses have the freedom to offer them at their discretion. Displaying warranty information prominently can be beneficial but is not universally required by law. Furthermore, warranties apply to a wide range of products, including synthetic and blended fabrics, and are not limited to just natural fibers. This distinction reinforces the understanding that warranties are a marketing tool designed to build consumer trust and enhance value.