Return policy, No joke: An investigation into the impact of a retailer's return policy on consumers' decision making

Md Rokonuzzaman, Pramod Iyer and Ahasan Harun

Journal of Retailing and Consumer Services, 2021, vol. 59, issue C

Abstract: This study investigates the important role of a retailer's return policy in consumers' decision making. Utilizing signaling theory and the Cue Diagnosticity framework, this study posits that return policy, as a cue from a retailer, interacts with other cues (product, price, and product quality) to reduce perceived purchase risk and increases store image and patronage intention. Employing factorial experiment design, the authors conduct two studies and find support for several hypotheses. Results show that consumers value return policies depending upon the situation. A lenient return policy drives down purchase risk and leads consumers to have positive store images and higher patronage intentions. Both theoretical and managerial implications of the findings are provided.

Keywords: Return policy; Retailing; Service; Perceived risk; Perceived quality (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:59:y:2021:i:c:s0969698920313540

DOI: 10.1016/j.jretconser.2020.102346

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