Increasing customer purchase intention through product return policies: The pivotal impacts of retailer brand familiarity and product categories

This study gauges customer perspectives to investigate how return policy generosity (the degree to which a retailer imposes minimal restrictions on returns) influences customer-perceived value and customer purchase intention. It also examines two moderators, retailer brand familiarity (the extent to which the retailer brand is well-known) and product categories (the difference between products with respect to the magnitude of effort required to make a return). An experiment with a 2 × 2 × 2 factorial design was conducted. The results show that return policy generosity increases customer purchase intention by enhancing the perceived value of the policy. Lesser-known retailers benefit more from generous return policies than their well-known competitors, particularly when a product requires significant return effort. Well-known retailers benefit from offering generous return policies only for product categories that involve low levels of return effort. The findings of this study suggest that if a retailer formulates a return policy without considering the moderating effects of retailer brand familiarity and product category, then it will tend to over-invest if the return policy is generous.     

How habits, social ties, and economic switching barriers affect customer loyalty in contractual service settings

While existing literature acknowledges positive effects of satisfaction and economic switching barriers for building customer loyalty, studies analyzing interactions of these antecedents reveal mixed findings. Prior research does not consider, as antecedents of switching barriers, either habits or social ties that result from shared service-usage within a family or community. This paper contributes to the literature, first, by replicating the effects of satisfaction, economic switching barriers, and their interaction with customer loyalty and word-of-mouth of subscribers to a contractual service. Second, the study empirically tests the role of social ties as a social switching barrier. Third, the study introduces and tests the effects of habits as a precursor of economic and social switching barriers. Results reveal significant positive effects of satisfaction, economic switching barriers, and social ties on customer loyalty and word-of-mouth. Additionally, economic switching barriers and social ties interact significantly with satisfaction and habits act as a precursor of economic switching barriers and social ties.     

The moderating role of switching barriers on customer loyalty in the life insurance industry

In recent service management literature, researchers have incorporated switching barriers as an important potential influential factor on customer loyalty and found that the impact of customer satisfaction on customer loyalty might vary under different switching barrier conditions. However, switching barriers and their importance in the life insurance service contexts have received little in-depth attention. This study aims to examine the impact of switching barriers as a potential moderator on the complex interrelationships among the antecedents and consequences of customer satisfaction in the life insurance service context. The main findings of this study show that the switching barriers do have a moderating effect and play a crucial role in winning customer loyalty.     

Attitude formation from product trial: Distinct roles of cognition and affect for hedonic and functional products

Affective and cognitive responses to a product trial are examined in an experiment containing two cells representing two product types: hedonic and functional. The stimulus products were a computer game and grammar‐checking software. Forty‐two college students comprised the sample for the experiment. The specific affective responses studied are pleasure and arousal, and brand cognitions are represented as the expectancy value from brand attributes (the product of brand beliefs, belief confidence, and attribute evaluations, summed across the attributes (σ b_ic_ie_i)). The relative level and influence of affective and cognitive responses to a product trial were shown to differ significantly, depending on whether the product was hedonic or functional in nature. Specifically, for the hedonic product, felt arousal during the trial was higher than for the functional product, and emotional responses were significant antecedents of subjects' evaluations of the trial experience. Brand cognitions, however, were not significantly related to trial evaluations for the hedonic product. In contrast, for the functional product, brand cognitions and pleasure were significant antecedents of trial evaluations, but arousal was not. The findings of this study demonstrate the importance of considering both the cognitive structure created by a product trial and the consumer's emotional reactions to the trial. For hedonic products, especially, emotional responses to the trial were shown to be powerful antecedents to consumers' evaluations of a trial experience, and subsequently, brand attitude. Marketers and marketing researchers can use these results to predict which category of responses to product trial (affective or cognitive) will be most important for brand evaluation for the particular product in question. This knowledge may also enable marketers to manipulate aspects of a product trial that are most influential on the set of trial responses that this study has shown to significantly affect brand evaluation for that product type. © 1999 John Wiley & Sons, Inc.     

How Do Price Perceptions of Different Brand Types Affect Shopping Value and Store Loyalty?

This research investigates the relationships among price perceptions for different brand types (national brands, standard store brands, regional store brands, organic store brands), shopping value dimensions (quality, price, social, and emotion value), and store loyalty (retention and word of mouth (WOM)). A comprehensive model depicts determinants of customer store loyalty. Using structural equation modeling, the model test includes 671 consumers intercepted during shopping trips. The data analysis yields several surprising results. In particular, low product price perceptions do not necessarily signal negative store quality evaluations. Shopping value dimensions influence store retention loyalty and WOM behavior differently. Furthermore, different brand types exert distinct effects on the value creation process. Favorable prices for national and standard store brands have comparable positive effects on store price value and emotional value creation; appealing prices of regional store brands instead reduce the emotional value of the store, and low prices for organic store brand products significantly increase social value creation.     

Using website information to reduce postpurchase dissonance: A mediated moderating role of perceived risk

A significant body of research is dedicated to decreasing the product return rate by applying management measures that identify the factors and causes of returns. These studies examine how consumers' product return behavior can be explained by studying the information on retailers' websites. However, these studies have not shown how website information (WI) is linked to product returns. The study by Lee's work observed how product returns are motivated by consumers' need to mitigate postpurchase dissonance (PPD). However, a clear understanding of the relationship between WI and PPD is lacking. Therefore, our research examines the impact of WI on PPD in the product returns context. In our research, PPD serves as a key factor in understanding the linkage between WI and product returns. Our results showed that higher‐quality WI is associated with a lower level of PPD. In addition, a lower perceived risk (PR) or attractiveness of alternatives strengthens the association between WI and PPD. We also observed that PR partially mediated the moderation effect of the attractiveness of alternatives. These findings will help e‐retailers better understand customers' PPD, easing the process of reducing product returns.     

The Impact of Brand Delisting on Store Switching and Brand Switching Intentions

A tool retailers often use to improve their negotiating position with brand manufacturers is to delist - or threaten to delist - the manufacturers’ brand. Because brand manufacturers rely mainly on retailers to sell their products to consumers, a brand delisting will cause a sales loss for the brand manufacturer. Therefore, many brand manufacturers feel enormous pressure to give in and improve buying conditions to favor the retailer. The question thus emerges: Can a brand manufacturer resist a retailer's threat to delist its brand(s)? If a brand delisting severely hurts retail sales, it is easier for a brand manufacturer to resist. The authors study the impact of brand delistings on store switching and brand switching using a controlled online experiment and in-store shopper survey. They develop and test a conceptual model with several antecedents of consumers’ reactions to a brand delisting and conclude that brand equity, market share, and the products’ hedonic level drive store and brand switching.     

Antecedents and consequences of brand attachment: A literature review and research agenda

Consumers develop powerful connections with brands and they feel a strong bond or attachment to favourite brands that can lead to re-purchase behaviour, reduced price sensitivity and increased customer loyalty. Gaining greater in-depth knowledge of brand attachment offers a powerful means of understanding and facilitates modelling the mechanisms for achieving greater profitability and increased revenue for firms. The purpose of this paper is first to map the antecedents, mediators and consequences of brand attachment; second to provide scholars with a map of prior research as a starting point for future research; and third to offer insights to extend understanding of how consumers relate to and engage with brands. The antecedents to brand attachment are categorized under five headings: brand-related concepts; self-brand connection and connection; congruence and the self; emotional drivers of brand attachment; and service-related concepts. The consequences of brand attachment are categorized as: brand loyalty and switching resistance; purchase intentions and willingness to pay; and word of mouth. The review and future research agenda utilize the Theory, Context, Characteristics, Methodology structure: (T) theory and concepts; (C) context and industry sectors; (C) characteristics (antecedents, mediators and consequences); (M) methods used in prior research. Recommendations focus on: social media marketing; social media marketing influencers and psychological ownership.     

Affect versus Cognition in the Chain from Perceived Quality to Customer Loyalty: The Roles of Product Beliefs and Experience

To support managerial practice and help improve analytical models in retailing, this article extends the literature on processes in the psychological chain of effects from perceived quality to customer loyalty by making three original and fundamental contributions. Based on multilevel structural equation modeling of consumer data from Bolivia, Japan, and the USA, it shows that product beliefs mediate this chain of effects and that cross-over effects connect rational and emotional processes within this chain. Moreover, it elucidates conditions moderating the strength of these emotional and rational processes. Breadth of experience positively moderates the mediating role of product beliefs. Relative price positively moderates the effect of hedonic product beliefs on affective customer satisfaction and negatively moderates the effect of utilitarian product beliefs on cognitive customer satisfaction. Time since purchase positively moderates the role of emotional processes and negatively moderates the role of rational processes. The moderating effects of sensory, affective, and intellectual brand experience support the predictive validity of the research model. Further analyses illuminate how social recognition, customer value co-creation through product usage patterns, and product-service bundling affect product beliefs, as well as how affective and cognitive customer satisfaction influence positive word-of-mouth.     

零售商品牌资产管理策略体系构建——基于多维理论视角的探讨

零售商品牌资产的管理和创建是零售企业获取持续竞争优势的关键,但关于零售商品牌资产管理策略的理论指导并不系统和丰富。因此,本文从零售商品牌营销管理、顾客情绪管理、顾客体验管理、顾客关系管理、顾客忠诚管理5个多维理论视角,对零售商品牌资产管理的策略体系进行了构建,以期为零售商品牌资产的创建过程和途径提供丰富的管理视野与思路。     

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.     

消费者重购意向形成影响因素与作用机制研究

维系老顾客,满足顾客的期望,不断增加顾客的重购行为对企业提高市场竞争力具有非常重要的意义。顾客满意、顾客的品牌偏好、顾客的多样化追求倾向、替代品的吸引力和顾客感知的转换壁垒是影响顾客重购的主要因素。同时,在此基础上模仿了电子技术中的并联回路,建立了影响因素的作用机制模型。     

Product standardisation in the food service industry: post-purchase attitudes and repurchase intentions of non-Muslims after consuming halal food

In order to satisfy the Muslim market segment, many restaurant and fast food companies in Western countries have standardised their products by switching to halal. The purpose of this research is to discover the extent to which non-Muslim consumers in non-Muslim countries experience cognitive dissonance when they think about restaurants and fast food outlets having likely served them halal-produced food, and the extent to which these consumers intend to repurchase halal food. Data came from a total sample of 1097 non-Muslim consumers in Canada, Spain and the United Kingdom. The full model, with religious identity, ethnic identification and interest in animal welfare as antecedents of cognitive dissonance, explained 35% of the variance in consumers’ repurchase intentions. Our findings suggest that many non-Muslims do not have a particular issue with consuming halal food, but they may react negatively if they unintentionally consume halal food and perceive that they have been deprived of information, or worse still, deliberately deceived. The research makes a number of contributions to marketing knowledge with regard to the negative spillover effects that can result from faith-based product standardisation, and the influences of consumer interest in animal welfare and deprivation of product information on consumer behaviour.     

Information Search and Product Returns Across Mobile and Traditional Online Channels

Product returns will soon cost firms a trillion dollars annually; e-commerce appears more at risk for these costs relative to offline channels. Retailers thus need strategic insights into which factors increase customers’ return propensity and when the short-term costs of returns might be offset by future customer purchases. This article reports two studies that use transaction data from two large apparel e-tailers. Study 1 demonstrates that due to the differences between mobile and traditional online channels, consumers form a larger consideration set when they shop through mobile channels, and this distinctive search practice spills over onto return rates. That is, return rates are lower in mobile channels, and the use of the mobile channel also alters the effect of discount promotions. The findings in Study 2 suggest that future purchases by consumers, after a return, are contingent on category characteristics. In categories in which customers can easily learn from their previous return experience, product returns positively increase future spending, but the opposite is true in categories in which it is difficult to learn.     

Money-back guarantee and pricing decision with retailer's store brand

This paper investigates the money-back guarantee (MBG) choice problem in the presence of store brand introduction in a two-echelon supply chain consisted of one manufacturer and one retailer. Game-theoretic models with different MBG policies regarding the national brand and the store brand are examined. We found that the MBG policy could be a strategic tool to help the retailer developing its store brand even when a fairer policy is chosen by the retailer and the store brand is considered by consumers as a low-end substitute for the national brand. The presence of MBG is beneficial to the retailer while unfavorable to the manufacturer, even though the retailer provides a fairer MBG policy, i.e., MBG for both two brands. Although the national brand has advantages over the store brand, MBG will increase the competition and cause customer shifting from the national brand to store brand and thus bring a profit loss for the manufacturer. Moreover, we have found that the manufacturer could provide coordinate contracts for the retailer to improve its performance with which a win-win outcome could be reached for both the manufacturer and the retailer.     

Private Label Vendor Selection in a Supply Chain: Quality and Clientele Effects

We model a supply chain consisting of a national brand manufacturer and an independent manufacturer, both of whom are potential suppliers of store brand to a single retailer. The retailer serves two customer segments—a quality sensitive segment (high type) and a price sensitive (low type) segment. The retailer serves these two segments by targeting the national and store brands to the quality and price sensitive segments, respectively. When the national brand manufacturer supplies the store brand he internalizes the effect of store brand quality on the national brand's retail prices. This leads the national brand manufacturer to choose a lower store brand quality than the independent manufacturer. This decrease in store brand quality has the benefit of increased revenues from the high type customers along with an associated cost of decreased revenues from the low type customers. Thus, when the benefit outweighs the cost the retailer chooses the national brand manufacturer to supply the store brand. We show that the retailer will choose the national brand manufacturer to supply the store brand when (a) the size of the high type customer segment is large relative to the low type customer segment, (b) the valuations of the high type customer segment is large relative to the low type customer segment, and (c) the retailer's margin requirement on the store brand is not very high. Overall, these results suggest that retailers who serve a bigger sized quality (price) sensitive clientele would have the national brand (independent) manufacturer supply the store brand.     

UK mid-market department stores: Is fashion product assortment one key to regaining competitive advantage?

This paper investigates consumer's attitudes towards fashion product assortment in UK mid-market department stores. It aims to determine whether changes to assortment will increase purchase intention and help regain competitive advantage through aligning customer perceptions of product quality and fit with brand image. Our findings challenge the traditional role of the department store in curating fashion assortment. We find that increases in perceived quality, perceptions of brand portfolio and brand fit will increase the purchase intention of UK mid-market department store consumers, whilst reduced assortment sizes would lead to a decrease in purchase intent.     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.     

Social commerce website design,perceived value and loyalty behavior intentions: The moderating roles of gender,age and frequency of use

Drawing on the stimulus-organism-response (SOR) framework, a model is tested that improves the understanding of customer loyalty toward social commerce websites. The results showed that: information and service quality are key antecedents of perceived value, whereas rewards and recognition, and customization are non-significant. Perceived value is an important driver of customer loyalty toward these websites. The model's relationships are affected by gender and frequency of use. Overall, the findings of this study extend the understanding in the social commerce context of: (i) the antecedents of customer perceived value and behavioral intentions; and (ii) the moderating effects of age, gender and frequency of social commerce use on the model relationships.     

The impact of buy-online-and-return-in-store channel integration on online and offline behavioral intentions: The role of offline store

Retailers have treated the buy-online-and-return-in-store (BORS) policy as an important initiative to reduce return losses and provide a better customer experience. Studies on BORS policy have primarily focused on the retailer's strategic value, but not on how such a seamlessly integrated omnichannel operation affects customer behavior. Using Chinese customer data and the structural equation model (SEM), we investigate how BORS channel integration impacts customer behavioral intentions, with the consideration of the mediating effect of customer satisfaction and the moderating effect of offline store characteristics. Based on the stimulus-organism-response framework, our research found that two dimensions of BORS channel integration (integrated return fulfillment and integrated customer service) positively impact customer satisfaction and subsequently impact behavioral intentions in different channels. Furthermore, offline store convenience moderates the relationship between integrated customer service and customer satisfaction. Product variety in the offline store moderates the relationship between customer satisfaction and offline behavioral intentions, while it is not statistically significant in the relationship between customer satisfaction and online behavioral intentions. Compared to the younger group, the older group who is satisfied with BORS service is more likely to purchase offline. These findings generate important theoretical and practical implications for omnichannel return operations.