Return Policy Research Articles

Non-returning factors from an interview survey of 16 residents of Katsurao village 12years after the Fukushima nuclear power plant accident.

People generally wish to return home after being evacuated due to disaster situations. Evacuation orders have now been lifted in the Fukushima region following the nuclear accident in 2011, and the Japanese government is promoting a return policy. However, many residents who wish to return home remain unable to and continue living in evacuation sites or other areas. Sixteen residents of Katsurao village were interviewed after evacuation orders were lifted in 2016 who have not yet returned. Concerns were cited regarding radiation, prolonged evacuation, health problems, buying a house in the evacuation area and schooling. The problems identified were primarily due to the rapid ageing and decline of the regional population, reflecting similar issues throughout Japan. In particular, health problems and intention to return were thought to be closely related. Over 10 y have passed since the evacuation, and many residents have experienced familial separation and divided living situations.

“Take no risk!”: Immediate and delayed backfire-effect of risk-reducing messages in retailers' return and exchange policies

While much research highlights the positive effects of appropriate risk framing in online retail advertising, this study reveals its potential adverse impact on consumer purchase decisions, particularly when communicating retailers' return and exchange policies. We conducted four studies, including three distinct field experiments in partnership with a major online retailer, to explore immediate and deferred consumer behaviors - advertising engagement and actual purchases - across over 452,632 consumers, and one controlled online experiment to test the proposed hypotheses. Studies 1a and 1b examined the short-term adverse effects of reassuring risk framing on immediate advertising engagement, and Study 2 assessed its impact on delayed decisions (actual purchase). Study 3 provided insights into the underlying psychological mechanisms using the persuasion knowledge theory. Our findings indicate that framing messages such as “take no risk” can diminish advertising engagement and actual purchasing behavior, because of greater persuasion knowledge. Advertisers are advised to carefully evaluate the use of risk-reducing messages in their communication to avoid unintended negative impacts on both advertising engagement and actual purchase behavior. This study enriches the advertising literature by uncovering the backfiring effects of reassuring risk-reducing framing.

Assessment of Factors Affecting Customer Preferences and Customer Satisfaction on Online Shopping Experiences Case of Delhi NCR

This study is on assessment of factors affecting customer preferences and customer satisfaction on online shopping experiences in Delhi NCR. It is mandated to look into the different aspects of e-shopping, from factors that determine the individual preferences, to those that influence satisfaction and some pain points that the customers experience. The objectives of the research are to look into what influences consumers' choice of e-commerce platforms, evaluate and assess the different aspects contributing to customer satisfaction in the online shopping experience, and explore common challenges faced by customers while shopping online. The study offers important insights into the dynamics of e-commerce platforms and consumer preferences through a thorough examination of these goals. A number of factors, such as frequency of purchases, price competition, app use, return policies, and delivery reliability and speed, affect customers' choice of e-commerce platforms. According to the analysis, the majority of users give priority to platforms that provide easy-to-use payment methods including E-payments and Cash on Delivery (COD) (71%). One important feature that stood out was price competitiveness (58%); consumers favored platforms that provided a large selection of products at competitive prices. Customers also emphasized the importance of the user-friendliness of apps, the return policy, and the dependability and timeliness of delivery while choosing e-commerce platforms. The majority of consumers (77%) are satisfied with their online purchasing experiences, according to the study. Customer satisfaction is largely influenced by the usability of websites and mobile apps, the reliability and speed of deliveries, and the correctness and quality of the products. Platforms that provide high-quality products, timely and dependable delivery services, and user-friendly interfaces are highly valued by customers. These elements have a big impact on how satisfied consumers are with e-commerce sites overall. Although consumers are generally satisfied, there are a number of difficulties when they shop online. Common pain points experienced are poor product quality, complicated or nonexistent return processes, worries about payment security, language barriers, and improper item deliveries. These difficulties highlight how critical it is to respond to consumer complaints and improve the online shopping experience by implementing stronger security measures, clear return procedures, and better-quality products. Several recommendations are put out in light of the findings in order to boost e-commerce platform efficacy and raise customer satisfaction. The study further acknowledges limitations, which could affect how broadly the results can be applied, such as its limited sample size and resource limits. In order to offer more thorough insights into the tastes and behaviours of e-commerce customers, future research projects should address these shortcomings. The study concludes by highlighting the multifaceted nature of client preferences and issues in the e-commerce sector. E-commerce platforms may promote stronger client loyalty and drive sustainable growth in the cutthroat online marketplace by comprehending the variables impacting platform choice, improving components contributing to customer satisfaction, and addressing frequent issues experienced by customers.

Promised hassle time management in online retailing with fraudulent and regretful customers

Fraudulent customer return behavior, called “wardrobing,” incurs significant product return costs for online retailers. However, customers can also behave regretfully in online retailing, causing high product return costs. Consequently, we explore the combined effect of fraudulent and regretful customers in product returns. Research suggests implementing restrictive return policies to curb huge return costs due to fraudulent and regretful customer behaviors. One of the ways to implement a restrictive policy is by introducing hassle time. Consequently, retailers commit promised hassle times to customers, during which the retailers can approve the product returns and issue refunds. As a result, we determine how an online retailer can respond to regretful and fraudulent customers through promised hassle time while considering the stochastic nature of hassle time. In some situations, an online retailer might know that hassle time follows a specific probability distribution; in others, a retailer might not know the distribution. Therefore, we determine the optimal promised hassle time an online retailer must promise to regretful and fraudulent customers in each situation. For the first situation, we determine that a specific ratio, which we call the customer ratio, determines how the optimal promised hassle time changes with customers' fraud and regret levels. If the customer ratio is one, the optimal promised hassle time does not change; if it is greater than one, the optimal promised hassle time increases; and if it is less than one, the optimal promised hassle time decreases, with an increase in fraud and a decrease in regret levels. For the second situation, we propose a novel decision-making tool for online retailers, enabling them to optimize the promised hassle time. Finally, we generalize the results of our study to order cancellations with regretful customers, and shared mobility services.

Selling mode choice and return policy for advance selling in an e-commerce platform with social influence

Advance selling is increasingly employed to mitigate demand uncertainty, raise consumer awareness of products, and even exert social influence on subsequent sales. However, consumers may hesitate to pre-order products due to uncertainty about product valuation. As a response, sellers have begun implementing return policies and utilizing online retail platforms to alleviate the uncertainty. This study aims to investigate the interaction between return policies for advance selling and selling formats of e-commerce platforms considering the impact of social influence. We examine a two-period platform supply chain that includes agency selling, reselling, and hybrid selling formats with and without return policies. Using game theory models, we analyze pricing decisions and profits of each player under six possible scenarios. The results indicate that the manufacturer consistently prefers adopting a Money-Back Guarantee (MBG) return policy regardless of the selling format. However, the MBG return policy is not always advantageous for the platform, except in the case of low social influence. In such a case, the platform may implement the MBG return policy to boost advance sales, thereby enhancing the penetration power from advance sales to regular sales. Regarding selling formats, the platform and the manufacturer opt for the reselling and agency selling, respectively, when the commission rate is low; otherwise, they adopt the agency selling and hybrid selling, respectively. Furthermore, we explore the impact of critical drivers on the pricing decisions and profits within the platform supply chain. Our study offers valuable insights into implementing return policies and determining selling formats.

A STUDY ON CONSUMER SATISFACTION TOWARDS ONLINE SHOPPING WITH SPECIAL REFERENCE TO KALYANA KARNATAKA

This study examines consumer satisfaction in the context of online shopping, with a focus on Flipkart, one of India's leading e-commerce platforms. The research explores various factors that influence consumer satisfaction, including time-saving features, product variety, discounts, pricing, delivery speed, and the impact of social media on purchasing decisions. A sample of 150 respondents was surveyed using a structured questionnaire, with data analysed through statistical tools such as pie charts and tables. The results indicate that younger consumers, particularly those under 30, and female shoppers constitute the majority of online shoppers. Social media was identified as the most significant medium influencing purchasing behaviour, surpassing traditional channels such as television and newspapers. Key findings highlight the importance of fast delivery, competitive pricing, and a wide variety of product options in driving consumer satisfaction. The study also reveals that concerns about online payment security and return policies remain barriers to achieving full customer satisfaction. Based on the findings, the study suggests that e-commerce platforms can improve customer trust and loyalty by enhancing payment security, streamlining return policies, and leveraging social media for personalized marketing. The study concludes by emphasizing the role of consumer satisfaction in maintaining a competitive advantage in the growing online retail sector. KEYWORDS: Consumer satisfaction, online shopping, e-commerce, Flipkart, purchasing behaviour, product variety, discounts, social media influence, delivery speed, payment security, return policies, customer loyalty, demographic trends.

Leveraging gamification to enhance persuasive behaviour and streamline online product returns: an approach grounded in multiple case studies

PurposeThe study identifies barriers all stakeholders face in the returns management process. The pressing issue of online product returns significantly erodes the net profit margins, demanding urgent action. Existing returns management systems are often complex, time-consuming and costly, failing to address this issue effectively. In this regard, persuasive technologies like gamification can effectively influence behaviour and enhance motivation towards reducing return by striking a balance between psychological and behavioural factors. Therefore, the study proposes a framework that combines the theory of planned behaviour and Octalysis to identify intentions to reduce product return rates in the e-commerce business.Design/methodology/approachA qualitative exploratory research design using a multiple case study-based approach with in-depth interviews conducted with 96 varied stakeholders was used to provide insights into the behavioural aspects for reducing return rates in e-commerce.FindingsThe results reveal three facets of effective returns management in e-commerce. Customers and delivery partners prioritize return processes, policies and rewards, emphasizing efficiency. Meanwhile, mid- and strategic-level employees are optimistic about return process enhancements. Interdepartmental integration and cross-functional communication are found to be vital, suggesting the need for a gamified framework in returns management.Originality/valueThis research enriches the returns management literature on gamification solutions and responds to the need for theoretical anchoring by applying the theory of planned behaviour at the organizational level to improve efficiency and customer centricity in the return process.

Identifying factors of online shopping and influence on purchase intention of product among Saudi consumers: The mediating role of consumer trust

The rise of Internet technology has transformed consumer shopping behaviors, offering convenience and a wide range of options, making online shopping increasingly popular. In Saudi Arabia, this trend has grown significantly due to higher internet penetration, technological advancements, and shifting consumer preferences. However, building and maintaining consumer trust remains a crucial challenge. Despite the growing interest, there is limited research on the unique aspects of Saudi consumers’ online shopping behaviors. This study aims to address this gap by identifying key factors influencing these behaviors and examining their impact on purchase intentions, with a focus on the mediating role of consumer trust. This study explores factors influencing online shopping behavior and their impact on purchase intention, with a focus on consumer trust as a mediator. Using a survey of 573 respondents from Jeddah and Medina, Saudi Arabia, key factors identified through literature review include perceived usefulness, ease of use, risk perception, website quality, and social influence. The quantitative analysis revealed that customer service and return policies, information quality, perceived convenience, ease of use, usefulness, cost-saving, product variety, and social influence significantly affect consumer trust, which in turn enhances purchase intention. These findings provide valuable insights for businesses to optimize digital strategies, enhance consumer engagement, and foster long-term customer relationships, thereby boosting satisfaction and online business success.

Optimal product pricing and lot sizing decisions for an omni-channel supply chain

In an omni-channel supply chain, companies offer customers multiple channels to interact with their brand. This allows for greater outreach and sales, resulting in increased customer loyalty and trust. Furthermore, there has been little discussion on the simultaneous consideration of strategic and tactical decisions under return policies in omni-channel supply chains. To maximize total profit, this research proposes a two-echelon supply chain, comprising a manufacturer and multiple retailers, including traditional, electronic and omni-channels. The non-deterministic demand function takes into account the sales price, refund price, delivery time and order quantities. A heuristic algorithm based on analysis of Karush–Kuhn–Tucker optimality conditions used to solve a nonlinear programming model. This research presents an analysis of the factors influencing the decision variables and profit of the entire supply chain and offers retailers a unique way to evaluate their performance and make operational decisions regarding price, delivery time and order quantities.

Full Quantity or Full Credit? Choosing the Right Buyback Policy for a Behavioral Retailer

Problem definition: Despite extensive research on buyback contracts in supply chain management, little attention has been given to a direct comparison between a traditional full-quantity, partial-credit (FQ) buyback contract and an alternative full-credit, partial-quantity (FC) contract, especially when considering the behavioral biases of the retailer. This study aims to fill this research gap by exploring how these biases influence contract performance and offer practical guidelines for suppliers. Methodology/results: Through controlled laboratory experiments and structural model estimation, we show that the ordering decisions made by human retailers are jointly affected by three behavioral biases—loss aversion, prospective accounting, and psychological cost of inventory error—and these biases differ in magnitude between the two contracts. Incorporating these biases into a behavioral retailer’s utility function, we then analytically examine which buyback policy the supplier should choose. When the wholesale price is exogenously given, the supplier should adopt the FC contract for high-margin (low-cost) products. Conversely, when the supplier has the power to set both the wholesale and buyback prices, the FC contract is generally more beneficial for low-margin products. Finally, when the product cost is sufficiently high, a wholesale price contract may be advantageous over buyback policies. Managerial implications: The managerial implication of this paper is significant for suppliers who have to choose between different buyback policies. The paper suggests that the supplier should carefully consider not just the economic, but also the behavioral dimensions when making contract decisions, particularly when dealing with a retailer influenced by behavioral biases. Specifically, the choice between FQ and FC contracts is influenced by two key environmental factors: the production cost of the product and the nature of wholesale pricing. Understanding these elements allows suppliers to be flexible in contract choices and design appropriate return policies for their downstream supply chain partners. Funding: P. Yu was supported by the National Natural Science Foundation of China [Grants 72371038 and 72033003] and the Fundamental Research Funds for the Central Universities [Grant 2024CDJSKPT16]. T. Feng was supported by the National Natural Science Foundation of China [Grant 72131004]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2023.0574 .

Agency or reselling: optimal return policy in E-commerce retail systems under cap-and-trade regulation

In recent years, the government has issued regulations on environmental protection, carbon emissions, and trading. Enterprises’ environmental awareness has increased, and the operational strategies of manufacturers and platforms have also been affected by environmental regulations. This study considers the interactive effects of agency and reselling contracts between manufacturers and platforms and the cap-and-trade regulation on return policy. Our findings reveal that government-imposed caps on total carbon emissions consistently influence optimal pricing and profits under cap-and-trade regulation, regardless of the presence of a return policy. Additionally, the emission intensity of manufacturers plays a pivotal role in determining the return policy. High manufacturer emission intensity leads decision-makers to provide return services only under specific conditions. Moreover, manufacturers opt for agency contracts when faced with low commission rates, and this threshold is intricately linked to carbon emission intensity, the cap, and the return rate. The government’s ability to adjust the cap enables control over changes in manufacturers’ profits and output, thereby influencing industrial structure and carbon emissions. Manufacturers strategically choose return policies, considering factors such as carbon intensity, return rate, and commission rate. Remarkably, even under cap-and-trade regulations, manufacturers remain inclined to offer returns under optimal conditions.

How retailers can gain more profitability driven by digital technology: Live streaming promotion and blockchain technology traceability?

Live streaming in e-commerce often faces challenges like counterfeit products and high return rates. To mitigate this issue, retailers can adopt blockchain technology for product traceability to enhance consumer trust, i.e., blockchain-traceable products may be sold in live streaming. Our paper presents three analytical models under various return policies to explore how live streaming and blockchain technology interact in e-commerce. Retailers can invest in live streaming with influencers to attract consumers and in blockchain technology to reduce product returns, benefiting from a demand-enhancing effect and a price-enhancing effect, respectively. The retailer’s investment strategy between live streaming and blockchain technology depends on the interactions of these two effects, moderated by the retailer’s budget type, the market commission level of live streaming, and the traceability cost of blockchain technology. For budget-constrained retailers, live streaming and blockchain technology act as substitutes. When the commission level is low (high) and the traceability cost is high (low), the demand-enhancing (price-enhancing) effect dominates the price-enhancing (demand-enhancing) effect, thus the retailer invests in live streaming (blockchain technology) as a substitute for blockchain technology (live streaming). Conversely, for budget-unconstrained retailers, they may act as complements, prompting investment in both when commission levels and traceability costs are low. The retailer does not invest in either when both the commission level and traceability cost are high. We extend our results to a full refund policy to show the robustness of our result and find that it reduces the retailer’s incentive to invest in live streaming or blockchain technology.

The Key Factors for Improving Returns Management in E-Commerce in Indonesia from Customers’ Perspectives—An Analytic Hierarchy Process Approach

The rapid growth of e-commerce has led to an increase in the number of product returns in supply chains, which is both environmentally and economically challenging. E-commerce companies need to effectively manage product returns, as this has a direct impact on their reputation and consumer experience. Reducing returns is key to maintaining sustainable practices for online product sales. A significant increase in e-commerce transactions is also evident in Indonesia, which is the fourth largest country in the world. Despite the very large size of the market, research on e-commerce in the business-to-customer (B2C) market in Indonesia is underrepresented in the literature. The purpose of this paper is to identify key factors from the customer perspective that influence product returns in reverse logistics in Indonesian e-commerce. The novelty of this study stems from the focus on the customer perspective on product returns in the B2C market when shopping online and the spatial scope. Due to the uncertainty inherent in multi-criteria decision making, the analytic hierarchy process (AHP) method was used to rank factors and potential solutions derived from a critical literature review. As a result, the study provides a ranking of factors and alternatives for managing e-commerce returns in Indonesia. The results show that among Indonesian e-commerce customers, product quality (QP) was rated the highest, while (Pu) was rated the lowest. In terms of the alternatives that are the most suitable for improving the customer experience of e-commerce product returns in Indonesia, a clear returns policy (CRP) scored the highest, while the merchandise catalog (Cat) was rated as the lowest priority.

How return policy leniency affects customer patronage in online retailing: moderating roles of novelty seeking and collectivism

How return policy leniency affects customer patronage in online retailing: moderating roles of novelty seeking and collectivism

An EOQ model for joint ordering, pricing, and return policy with advance booking discount

An EOQ model for joint ordering, pricing, and return policy with advance booking discount

Factors Influencing Online Shopping Decisions in the Fashion Industry

The purpose of this study is to pinpoint the variables that affect consumers' decisions to purchase online for fashion. This study is crucial because it can assist e-commerce businesses better understand consumer behavior and enhance their marketing tactics, which will have a substantial positive impact on the fields of management and information technology. This research employs a mixed-method methodology that combines qualitative interviews with quantitative survey data. Using an online questionnaire, 500 active Indonesian e-commerce users provided quantitative data, and 20 respondents participated in in-depth interviews that yielded qualitative data. While qualitative data were examined thematically, quantitative data were evaluated using Structural Equation Modeling (SEM) with Smart-PLS software. The key conclusions show that customer service responsiveness, product clarity, user reviews, flexible return policies, and platform trust are significant determinants of online purchasing behavior. Competitive pricing and promotional tactics also have a big impact. These results have consequences for e-commerce organizations, who should concentrate on enhancing aspects of trust, the quality of product information, and efficient promotional techniques to draw in and keep customers. The present study suggests that additional investigation is warranted to examine other variables, including the impact of social media and fashion trends on the behavior of online shoppers.

Analisis Faktor-Faktor yang Mempengaruhi Keputusan Pembelian Skincare pada E-Commerce: Implementasi Sistem Informasi Manajemen

This study aims to analyze the effect of management information systems on E-Commerce purchasing decisions for skincare products. This study uses the literature review method to analyze related articles from various relevant literature sources. This article reviews the factors that influence skin care purchasing decisions on E-Commerce. In this context, factors such as product quality, price, brand reputation, user reviews, promotions, user experience, product availability, return policy, and user experience are potential variables influencing consumer purchasing behaviour. The results showed that management information systems significantly influence purchasing decisions for skincare products in E-Commerce. This research provides practical implications for beauty industry players and e-commerce to improve marketing strategies, product management, and customer service. By understanding the significant factors in purchasing decisions, e-commerce can optimize management information systems to meet consumer expectations and increase the market share of skincare products online

Analysis of Factors Influencing Trust and its Impact on Repurchase Intention in C2C E-Commerce in Indonesia

The use of the internet has transformed individual shopping behaviors, shifting from traditional shopping patterns or visiting physical stores to shopping through online platforms or e-commerce. This behavioral change has undeniably had a significant impact on the retail industry and consumers at large. With the increasing number of e-commerce users, especially in the C2C (consumer to consumer) sector, market competition is becoming more intense. This study focuses on analyzing certain factors such as website appearance, ease of use, free shipping policy, return policy, POD mode of payment, and security that can influence customer trust and its impact on repurchase intention. Data collection was conducted through the distribution of online questionnaires in the Jabodetabek area to customers who had made online purchases in the last three months, using a purposive sampling method with a total of 228 respondents. The research method analysis used the PLS-SEM method. The results of this study indicate that website appearance, free shipping policy, return policy, and security have a positive and significant effect on trust. Meanwhile, ease of use and POD mode of payment have a positive but not significant effect on trust. Furthermore, trust has a positive and significant impact on repurchase intention. This study plays a role for C2C e-commerce management in increasing consumer trust, especially among the millennial generation, and its impact on repurchase intention.

One size does not fit all: Optimizing size-inclusive model photography mitigates fit risk in online fashion retailing

AbstractDespite retailers’ interest in moving away from thin-model photography to embrace body-size diversity, online fashion shopping predominantly features thin models. While concerns about negative consequences for sales impede industry-wide changes, we demonstrate that consumers and retailers benefit from optimally portraying diverse bodies. Three studies unveil the “Dissimilarity-Risk Deterrence Effect,” wherein thin models dissuade consumers with larger clothing sizes from online purchasing due to perceived body-size dissimilarity and heightened fit-risk perception. Eight experiments demonstrate that models of consumers’ own size mitigate the effect, enhancing online purchase decisions, while controlling for mechanisms like positive affect, authenticity and social identification. The effect extends across various clothing items but attenuates when body size matters less to fit evaluation. Moreover, the effect is concealed by retailers’ risk-reducing strategies, such as measurement information and free product return policies. This research underscores the strategic significance of diverse product imaging to improve supply chain efficiency and consumer well-being.

Exploring Customer Trust and Online Continuance Shopping Intention of Cosmetics, with Mediating Effect of Perceived Risk

Purpose This study aims to explore the relationship between customer trust, perceived risk, and online continuance shopping intention in the cosmetics industry. It focuses on understanding the direct impact of customer trust on shopping intention and the mediating role of perceived risk. The research provides insights to help marketers and policymakers enhance consumer trust and mitigate perceived risks in online shopping. Theoretical Framework This study's theoretical framework is based on the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TPB). It extends these models by including customer trust and perceived risk as key factors influencing online continuance shopping intention in the cosmetics industry. Methodology The study employs a Partial Least Squares (PLS) approach for Structural Equation Modelling (SEM) to analyze the relationships between customer trust, perceived risk, and online continuance shopping intention. Findings The study reveals that customer trust significantly boosts online continuance shopping intention, encouraging repeat purchases. Perceived risk partially mediates this relationship, meaning while trust reduces perceived risk, the presence of risk still negatively impacts the intention to continue shopping online. The path coefficients quantify these relationships, highlighting the strength and significance of both direct and indirect effects. Implication For marketers and policymakers in the online cosmetics industry, the study suggests that building customer trust through transparent communication, reliable service, and secure payments is crucial for fostering repeat purchases. Additionally, reducing perceived risks with clear return policies, product guarantees, and data protection measures can alleviate customer concerns.