If a lightbulb failed to last as long as Philips said it would last, the customer would be able to mail it back to Philips for a prompt refund. No questions would be asked. The customer would simply have to send the product back with a proof of purchase or register receipt. In sum, Philips was not only saying that the light bulbs would last one, two, five, or seven years , but also guaranteeing it.
It took a little effort to sell this extensive guarantee policy internally at Philips. Everybody finally agreed, however, that if the company really believed in the product, it should stand behind it. This seems to have been the right strategy at the right time. Consumers and retailers liked the idea of a guaranteed life. At this point, Philips has seen only a handful of returns come in on a daily basis, which is very small compared to how many lightbulbs it sells.