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E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention

Author

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  • Pei, Zhi
  • Paswan, Audhesh
  • Yan, Ruiliang

Abstract

While e-commerce is growing, returns are proving to be a major problem for e-tailers (i.e. internet retailers). We argue that e-tailers׳ return policies play a strategic influence on consumer behavior. Specifically, we focus on the effect of return depth - full return policy (FRP) vs. partial return policy (PRP) – on consumer׳s perceived fairness of return policy and purchase intention. Using a structural equation model (SEM), we empirically show that an e-tailer׳s return depth has a positive influence on the consumer׳s perceived fairness of the return policy and purchase intention. Further, e-tailer׳ competition and its reputation significantly moderate the relationships between the return policy depth and the perception of the return policy׳s fairness and purchase intention. Finally, we discuss the theoretical and managerial implications of our results.

Suggested Citation

  • Pei, Zhi & Paswan, Audhesh & Yan, Ruiliang, 2014. "E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 249-257.
    • Handle: RePEc:eee:joreco:v:21:y:2014:i:3:p:249-257
    DOI: 10.1016/j.jretconser.2014.01.004
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