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Do product returns hurt relational outcomes? some evidence from online retailing

Author

Listed:
  • Gianfranco Walsh

    (Friedrich Schiller University Jena)

  • Daniel Brylla

    (Friedrich Schiller University Jena)

Abstract

Customer product returns are a key challenge for online retailers. Previous research primarily focused on causes of returns and possible interventions to reduce customers’ product returns and concomitant costs for online retailers. However, little is known about the effect of product returns on key relational outcomes. Drawing on relationship marketing theory, we test a model that relates product returns to three relationship marketing outcomes—customer satisfaction, trust, and positive word-of-mouth. A field study based on online panel data from customers of eight large online retailers demonstrates that product returns negatively affect customer satisfaction with the retailer, customer trust, and word-of-mouth. The findings extend previous research by revealing that product returns can detrimentally affect relationships with customers. Implications for e-commerce research and management are discussed.

Suggested Citation

  • Gianfranco Walsh & Daniel Brylla, 2017. "Do product returns hurt relational outcomes? some evidence from online retailing," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 329-339, November.
    • Handle: RePEc:spr:elmark:v:27:y:2017:i:4:d:10.1007_s12525-016-0240-3
    DOI: 10.1007/s12525-016-0240-3
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    References listed on IDEAS

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    Cited by:

    1. Martínez-López, Francisco J. & Feng, Changyuan & Li, Yangchun & López-López, David, 2022. "Using instant refunds to improve online return experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    2. E. Mitchell Church & Richelle Oakley DaSouza & Olajumoke A. Awe, 2024. "Examining the Antecedents of Return Policy Leniency in eCommerce," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 22(1), pages 1-19, January.
    3. Chen, Hao-Wei, 2023. "Improving supply quality through the store-initiated returns in wholesale supply chains," International Journal of Production Economics, Elsevier, vol. 261(C).
    4. Rainer Alt, 2017. "Electronic markets on transaction costs," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 297-301, November.

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    More about this item

    Keywords

    Product returns; Customer satisfaction; Word-of-mouth;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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