To our knowledge, the topic of setting nonrefundable charges in direct marketing has not been investigated. Related topics of research include product warranties by manufacturers to protect buyers against quality defects in manufacturing (Padmanabhan and Rao, 1993; Menezes and Currim, 1992; Welling, 1989; Mann and Wissink, 1988, 1990) and money- back guaranties in retailing to enhance good product matching between products .