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An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce

  • Ramanathan, Ramakrishnan
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    Using data from online customer ratings, we explore how the relationships between performance of companies in handling product returns and customer loyalty are affected by risk characteristics of products. Our results show that handling product returns plays an important role in shaping customer loyalty for low-risk products and also for high-risk products but not for products that exhibits medium levels of risk. These results have implications for website managers and development of reverse-logistics channels in the internet supply chains.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 130 (2011)
    Issue (Month): 2 (April)
    Pages: 255-261

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    Handle: RePEc:eee:proeco:v:130:y:2011:i:2:p:255-261
    Contact details of provider: Web page: http://www.elsevier.com/locate/ijpe

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    1. Sarkis, Joseph & Cordeiro, James J., 2001. "An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice," European Journal of Operational Research, Elsevier, vol. 135(1), pages 102-113, November.
    2. Prahinski, Carol & Kocabasoglu, Canan, 2006. "Empirical research opportunities in reverse supply chains," Omega, Elsevier, vol. 34(6), pages 519-532, December.
    3. Östlin, Johan & Sundin, Erik & Björkman, Mats, 2008. "Importance of closed-loop supply chain relationships for product remanufacturing," International Journal of Production Economics, Elsevier, vol. 115(2), pages 336-348, October.
    4. Kainuma, Yasutaka & Tawara, Nobuhiko, 2006. "A multiple attribute utility theory approach to lean and green supply chain management," International Journal of Production Economics, Elsevier, vol. 101(1), pages 99-108, May.
    5. Bill Doolin & Stuart Dillon & Fiona Thompson & James L. Corner, 2005. "Perceived Risk, the Internet Shopping Experience and Online Purchasing Behavior: A New Zealand Perspective," Journal of Global Information Management (JGIM), IGI Global, vol. 13(2), pages 66-88, April.
    6. Brown, Alexander & Chou, Mabel C. & Tang, Christopher S., 2008. "The implications of pooled returns policies," International Journal of Production Economics, Elsevier, vol. 111(1), pages 129-146, January.
    7. Disney, S. M. & Naim, M. M. & Potter, A., 2004. "Assessing the impact of e-business on supply chain dynamics," International Journal of Production Economics, Elsevier, vol. 89(2), pages 109-118, May.
    8. Choi, Tsan-Ming & Li, Duan & Yan, Houmin, 2004. "Optimal returns policy for supply chain with e-marketplace," International Journal of Production Economics, Elsevier, vol. 88(2), pages 205-227, March.
    9. Gregory R. Heim & Kingshuk K. Sinha, 2001. "Operational Drivers of Customer Loyalty in Electronic Retailing: An Empirical Analysis of Electronic Food Retailers," Manufacturing & Service Operations Management, INFORMS, vol. 3(3), pages 264-271, July.
    10. Kumar, Sameer & Putnam, Valora, 2008. "Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors," International Journal of Production Economics, Elsevier, vol. 115(2), pages 305-315, October.
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