Information and its impact on consumers׳ reactions to restrictive return policies

Designing an effective return policy is a difficult task for retailers. A very restrictive return policy can keep logistic costs down and prevent fraudulent returns but it can also have a negative effect on consumer behavior. Two experiments explore the role of assortment-related information in moderating consumers׳ negative reactions to more restrictive product return policies. The results demonstrate that consumers will view an assortment characterized by a more restrictive return policy as attractive to the extent that the assortment supports the information processing strategy triggered by the return policy.     

Consumer rights or unethical behaviors: Exploring the impacts of retailer return policies

While a product return guarantee plays an important role in reducing perceived risk, a liberal product return policy may generate a moral crisis in consumers and induce unethical post-consumption behaviors. Situational questionnaires with two return policies, liberal and rigorous, are used to investigate how such policies influence consumers' moral reasoning and fraudulent return activities. This study finds that a return policy with different attributes results in differing consumer moral recognition, moral judgment, moral intensity, and intentions toward fraudulent return. Among these constructs, evidence of a strong correlation between moral judgment and unethical returning behaviors was found. Social consensus has a greater impact on moral recognition, moral judgment, and fraudulent return intention than on the magnitude of consequences and probability of effect. These findings from consumers' moral perspectives address gaps in the literature in which most studies take the retailer point of view in examining the effects of return policy. Understanding consumers’ moral decision-making is helpful for retailers who seek to avoid consumer abuse of return policies.     

Exploring consumer orientation toward returns: unethical dimensions

As customer return rates increase, retailer bottom lines suffer from customers’ misuse of the policies and to the ethics of such practice. The purpose of this study is to explore customers’ orientation toward return behaviors, and to develop a return orientation assessing these dimensions. This research identified three dimensions relevant to consumer return behavior: the planned/unethical returner; the eager returner; and the reluctant/educated returner. A retest with another sample confirmed these three dimensions. Each dimension was analyzed for its relationship with consumer ethical beliefs as measured by the Muncy–Vitell Consumer Ethics Scale, ethical philosophies and shopping behaviors. These relationships supported the ethical and unethical aspects of returner orientation. Results of this research imply that the core aspect of returner orientation is relevant to ethical behavior and misuse of retail return policies. The three return orientations identified partially support the Rosenbaum & Bitner‐Olson research.     

Online fraudulent returns in Taiwan: The impacts of e-retailers’ transaction ethics and consumer personality

While online return policies are a guarantee of consumer rights that strengthens competitiveness, how to avoid unethical returns by consumers is a vital issue. This study examines the influences of e-retailers’ ethical efforts and consumer personalities on fraudulent returns through relationship building and maintenance. We found that commitment effectively reduces unethical returns. E-retailer's transaction ethics and consumer shopping orientation and relationship proneness can improve consumer trust in and commitment to the retailer, and prevent fraudulent returns. Scholarly and management implications are presented based on our findings.     

The Role of Brand Communications in Consumer Purchases of Organic Foods: A Research Framework

Despite a high level of awareness about organic foods in the marketplace, consumer purchases remain relatively low. This article develops a research framework for translation of relatively high consumer awareness of organic foods to increased consumer purchases. Literature review reveals that both a lack of knowledge in how foods qualify as organic and consumers’ mistrust in the way organizations apply the word organic prevents consumers from engaging in organic food purchases. Furthermore, being organic is no longer enough as organic products have become commoditized in the marketplace. With such an increasing commoditization of organic products, there is a growing pressure for organics to more effectively differentiate themselves. Accordingly, there is a dual branding opportunity for upgrading the current state of consumer awareness into both a higher volume of purchases and expanding the consumer base. This article proposes a research framework utilizing brand communications that could play a central role in triggering higher levels of consumer awareness, translating into increased volumes of organic purchases. This research framework considers consumer benefits an antecedent to brand communications and organic knowledge and consumer trust the mediators in influencing consumer organic purchases.     

Understanding unethical retail disposition practice and restraint from the consumer perspective

This research expands marketing's knowledge regarding unethical retail disposition (URD). URD is a type of consumer fraud, whereby consumers purchase an item of merchandise with the intent of using it and returning it to a retailer for a refund. The authors first employ grounded theory methodology to develop an original framework illustrating why consumers engage in either URD participation or restraint; next, they demonstrate empirical support for the framework. The authors support and augment previous URD research by reporting that URD offenders employ eight neutralization techniques to remedy personal guilt associated with committing the fraudulent behavior. This research also takes a novel approach by illustrating that consumers describe six motivations underlying URD restraint. Most concerning for retailers is that four of the six reasons for restraint are tenuous. Thus, consumers who refrain from URD may be easily swayed to participate in this illicit behavior. The authors posit that URD may represent a means by which consumers express disdain and mistrust for contemporary retailers, contributing to the societal discrimination that retail organizations owned by “middlemen minorities” engaged in trade and commerce often experience. © 2010 Wiley Periodicals, Inc.     

Let the music play or not: The influence of background music on consumer behavior

This study concerns the effect that music has on consumer behavior in two different retail contexts during regular opening hours. Two studies were conducted in a field setting with consumers (N=550). Consumers were recruited to answer questions regarding behavioral measures, attitudes, and mood during days when background music was played. The conclusions from the two studies are that music affects consumer behavior, but also that the type of retail store and gender influences both the strength and direction of the effect.     

Street Markets Influencing Urban Consumer Behavior in Mexico

Street markets in the urban setting form the bottom of the pyramid market structure, which caters to consumers of semi-urban settlements. Consumers favor these markets for farm-fresh agricultural products and low-priced consumer goods. This study empirically investigates the role of street markets in urban sociodemographic clusters in the shift of consumer behavior against large shopping malls and supermarkets. Data were gathered from 490 respondents engaged in buying products at 373 vending stalls across 14 street market locations in Mexico City. Data were collected on 31 variables and analyzed using structural equation model. The study also addresses street markets as change agents of consumer behavior in the context of marketplace ambience, vending patterns, ethnic values, and interactive customer relations. The conventional shopping wisdom of customers, competitive gains, and socio-cultural advantages are also addressed based on an empirical survey. The study revealed that shopping behavior is largely motivated by the physical factors such as location of marketplace, distance, and vending stall type within the street market. Findings also indicate that consumers possess a strong conviction that street markets offer fresh products of farm and animal origin as well as ethnic food irrespective of hygiene standard.     

The branded carnival: the dark magic of consumer excitement

ABSTRACT

This ethnography outlines experiences of the marketer-facilitated World Series of Beer Pong. Consumers, in carnival spirit, augment marketer-facilitated mimetic (moderate, controlled) forms of experience with non-mimetic (dangerous, uncontrolled) consumption rituals, enacted in pursuit of contemporary excitement. Consumers serendipitously hijack the facilitating brand’s ideology resulting in the promotion of marketplace tensions. This study contributes to marketing and consumer culture theory by extending current experiential marketing frameworks via the introduction of the branded carnival, a non-mimetic communal brand-centric phenomenon; showing how non-mimetic excitement emerges in marketplace contexts; highlighting the implications for experiential and brand community marketers; and positioning the branded carnival within a broader cultural gravitation towards non-mimetic behaviour opposing marketplace ideology. Finally, limitations are discussed, and directions for further research are suggested. Readers are encouraged to engage with carnival spirit: profanities go uncensored.     

Strategizing Retailing in the New Technology Era

The world of retailing is being reimagined and transformed at breakneck speeds due to new technologies, as well as due to changes in consumer purchasing behavior resulting from the COVID-19 pandemic. This dynamic retail marketplace is forcing retailers to strategize how to best position themselves to survive and flourish in this environment. Recognizing that we are at a critical inflection point in the world of retailing, we conceptualize a Strategic Wheel of Retailing in the new technology era that emphasizes technology as the core enabler of the strategies related to the 6Ps of retailing (retail place and supply chain management, product, pricing, promotion, personnel, and presentation). In particular, the articles calls for retailers to carefully their review their competitive ecosystem as they adapt to the new technologies, raises some issues, and offers new directions for further research on how technology can be leveraged to design profitable retail strategies.     

‘Consumers’ Evaluation of Unethical Marketing Behaviors: The Role of Customer Commitment’

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers’ commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers’ level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers.     

Organizational Music the Role of Listening in Interaction Processes

The paper focuses on consumer cynicism in online environments, using the anti‐Christmas sites of the Internet as an empirical case. Drawing on the discursive power model of consumer resistance, critical management studies on organizational cynicism, and Foucauldian ideas of political struggle as “politics of self,” it is argued that consumer cynicism, in online environments, may represent a form of resistance against markets and the marketing institution, which is brought about through the problematization and partial rejection of the normalized forms of consumer subjectivity that are offered in the marketplace. The paper illustrates how consumers employ a cynical rhetoric and discursive strategy, creatively drawing from the story of Ebenezer Scrooge, to problematize the received, highly commercialized ways of celebrating Christmas and to work on a cynical identity project, the scrooge, which represents an alternative form of consumer subjectivity, disillusioned and critical toward the market and the marketing institution.     

The dimensions of storytelling by retail salespeople

This paper explores storytelling in retail sales to develop a more nuanced understanding of the dimensions of retail storytelling and their importance in influencing consumer behavior. A mixed-method approach is taken to first qualitatively develop understanding of the structure of storytelling in a retail context and then quantitatively test the impact of various storytelling dimensions on consumer purchase intentions. Storytelling is common in retail sales encounters and consumers perceive multiple dimensions of storytelling. Some of these dimensions – story relevance, story humor, and storytelling ability – influence consumers' consumption behavior. This research begins to establish parameters for future examination of the use of storytelling in retail selling and informs managers of specific elements of storytelling on which to focus future training efforts.     

Exchange and refund of complementary products

A common dilemma a consumer faces during product return pertains to the decision of exchanging the product or obtaining a refund. This issue becomes even more salient for durable goods, when the initial purchase involves complementary products from different categories. This research examines consumer’s trade-off decision between returning and keeping complementary products by exploring various retail actions (using umbrella branded products (UBP)) and customer characteristics. We also investigate the trade-off between product exchange and refund when consumer returns a product. We find interesting extensions to past research wherein UBP are returned less and result in greater exchange than refund. Furthermore, an interesting caveat is that higher degree of complementarity between UBP intensifies the impact of various factors on exchange as opposed to refund of products. Implications for retail managers and sales teams are explored.     

The Impact of Intrinsic Religiosity on Consumers’ Ethical Beliefs: Does It Depend on the Type of Religion? A Comparison of Christian and Moslem Consumers in Germany and Turkey

Intrinsic religiosity drives ethical consumer behavior; however, previous studies regarding this connection are limited solely to a Christian cultural context. This comparative study instead includes Christian Consumers from Germany and Moslem Consumers from Turkey to determine if a specific religious community moderates the connection between intrinsic religiosity and consumer ethics. The results show that Consumers in the Turkish, Moslem subsample, exhibit an even stronger connection between religiosity and ethical consumer behavior than Consumers from the German, Christian subsample.     

Impact of positioning strategies on service firm performance

This research examines the application of positioning strategies of retail service firms in Texas. Four in-depth qualitative case studies and covert observation methods provide candid subterranean insight into retail positioning in a dynamic marketplace. “Branding”, “service”, “value for money” and, to a lesser extent, “reliability” and “attractiveness” positioning strategies emerge as the most dominant positioning strategies, although emphasis placed on each varies from firm to firm. Furthermore, all of the firms achieve acceptable sales and favorable consumer perceptions when employing these positioning strategies. Desired profits, return on investment (ROI), and market share are associated with these positioning strategies although not as “sales” and favorable “consumers' perceptions”. The results further show that the pursuit of multiple positioning strategies relates to multiple performance indicators. The paper concludes by providing normative suggestions and discussing theoretical and managerial implications.     

Consumer perceptions of third party product quality ratings

Consumers increasingly rely on product quality information provided by third-party product ratings organizations. These organizations undertake the task of examining and testing competing products in the marketplace, establishing the level of quality associated with each product, and communicating this information to consumers. Despite the important role of product quality ratings in consumer decisions little research has been conducted to establish the factors which may influence consumer perceptions of these ratings. This paper examines the role of the information content provided by product quality ratings organizations on consumer perceptions. Furthermore, the influence of contextual variables, namely information cost, product category and advertising content, is examined. The results indicate that both content and context significantly influence consumer perceptions of source credibility and their intentions to use the product quality ratings in their purchase decisions.     

A comparative analysis of differential consumer response across supermarket and specialty store in the candy category

Retailing industry has undergone tremendous change in its complexity and sophistication over the past few years. Globally we are witnessing the evolution of retailing industry from traditionally micro-managed small retail formats like mom and pop store to modern corporate-managed large retail formats like supermarkets. Consumers are also shopping across these various store formats even for the products in similar categories. In this research, we posit that consumer purchases in the similar categories may very well be characterized by differential responses to marketing mix across different store formats. The proposed model accounts for the influences that these diverse response parameters and preferences have on one another as well as consumer heterogeneity. Our results show that sensitivities to marketing mix as well as correlations in preferences do indeed vary across formats for consumer purchases in similar categories.     

An Alternative Explanation of Consumer Product Returns from the Postpurchase Dissonance and Ecological Marketing Perspectives

Research on consumer product returns has identified product failure, dissatisfaction, and fraudulent intent as primary causes. In recent years, however, consumers return products even before experiencing dissatisfaction and when products are not defective. Moreover, most consumers who return products are ordinary scrupulous people. Ironically, product returns are on the rise while overall product quality has improved. This suggests that there are other reasons for product returns yet to be uncovered. This study critically examines such types of recently observed product‐return behaviors from the postpurchase dissonance (PPD) and ecological marketing perspectives. A proposition emerged through the critical review that in the current competitive and consumer‐centered market environment, consumers increasingly choose product return over other options identified in the literature as a viable strategy to cope with their PPD. Two empirical studies and a recent major industry study on consumer product returns provided strong support for the proposition. Managerial and future research implications of the findings are discussed.     

How U.S. consumers view in-store promotions

Most sales promotion analysis, either at the external-to-the-store or in-store level, has been conducted based on what marketers have done and how consumers have responded in specific retail situations and for specific promotional techniques. Most studies, therefore are reported as, point-in-time and point-of-place specific, historical, after-the-fact results and imply a consumer preference for the measured activity. This paper provides a holistic view of how U.S. consumers regard all forms of promotion, both external-to-the-store in the form of 31 media alternatives and 23 in-store techniques across thirteen broad product categories. Data comes from twice a year online studies of representative groups of U.S. consumers, conducted since 2002. Consumers report on which in-store activities most influence their purchase decisions. From that, predictive models of consumer response to alternative promotional combinations are developed using CHAID analysis. This predictive approach is superior to traditional after-the-fact measures.