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Information and its impact on consumers׳ reactions to restrictive return policies |
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| Institution: | 1. Department of Computer Science, Missouri University of Science and Technology, Rolla, MO 65409,USA;2. Department of Information Systems, School of Economics and Management, Beihang University, Beijing 100191, China;3. Rutgers Business School, Rutgers University, NJ, USA;4. Department of Management Science and Engineering, School of Economics and Management, Tsinghua University, Beijing 100084, China;5. School of Management, Nanjing University, Nanjing, Jiangsu 210093, China |
| Abstract: | 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. |
| Keywords: | Return policy Product assortment Information processing Attitudes |
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