Taking stock of consumer returns: A review and classification of the literature

Abstract

Coincident with the rapid growth of consumer returns and their corresponding importance in the retail marketplace, academic interest in the area of consumer return policy design has significantly increased. In fact, the growth in academic publications has been tremendous, with almost half of the published works appearing within the past 6 years. The influx of new and evolving research spans across multiple disciplines and various methodologies. To provide clarity for the continued evolution of the field, we provide a comprehensive review and classification of the literature predicated on a holistic conceptual framework. The scope of the review includes all peer reviewed journal articles published prior to the end of 2018, along with any working papers cited therefrom, that specifically address (a) managerial decision‐making related to return policies or (b) consumer behavior in response to such decision‐making. Examining the state of the literature and practice on return policy design through the lens of a unified conceptual framework—a framework that spans both analytical and empirical research—reveals numerous managerial and theoretical opportunities for future research.

The impact of free returns on online purchase behavior: Evidence from an intervention at an online retailer

“…Although the bulk of prior research investigates some form of monetary leniency concerning a retailer's return policy similar to our study (Abdulla et al, 2019), our work is distinct from earlier research in two important ways. First, we do not investigate monetary leniency from the stance of money‐back guarantees or partial refunds but investigate a case where the retailer has waived the return shipping fee.…”

“…Nevertheless, return policies that offer full and hassle‐free product returns are prevalent (Shang et al, 2017). A lenient return policy is often seen as a signal of quality, thus reducing purchase risk for the customer (Abdulla et al, 2019; Bonifield et al, 2010; Davis et al, 1995; Li et al, 2013; Zhang et al, 2017). However, this has led to returns increasing sharply in recent years (Abdulla et al, 2019).…”

“…Generally, customers value lenient return policies as they reduce uncertainty and the perceived risk since there is no option to handle or try the desired product in advance (Mukhopadhyay & Setaputra, 2007). Furthermore, they evaluate a retailer's return policy from the perspective of “product fit and valuation uncertainty, customer heterogeneity, transaction costs, trial period consumption, return timing, demand and return sensitivity, and risk aversion” (Abdulla et al, 2019). Although losses from lenient return policies may be offset by higher sales or margins, the direction of the effects of a free returns policy is not clear.…”

“…Academic research on product returns dates to Heal (1977), and interest in research on online product returns has been on the rise in recent years (Abdulla et al, 2019; Janakiraman et al, 2016; Nguyen et al, 2018). Findings on the effects of free returns are mixed, with much research relying on self‐report data or having a limited ability to draw causal inferences (Abdulla et al, 2019; Cullinane et al, 2019; Janakiraman et al, 2016; Nguyen et al, 2018). On the one hand, free returns may increase purchases by lowering dissonance and signaling a retailer's quality, trustworthiness, and commitment to customer service.…”

The Impact of Big Data on Banking Operations

“…The academicians widely use a structured research framework, researchers, university graduates, and so forth on their research and always stay up-to-date with the variations of a new qualitative research framework structure (Molasso, 2006). A research framework is essential to classify the qualitative research structure from the literature review data (Abdulla et al, 2019). It also helps in data coding and interpretation (Collins & Stockton, 2018).…”