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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

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  • Ramanathan, Ramakrishnan

Abstract

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.

Suggested Citation

  • Ramanathan, Ramakrishnan, 2011. "An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce," International Journal of Production Economics, Elsevier, vol. 130(2), pages 255-261, April.
  • Handle: RePEc:eee:proeco:v:130:y:2011:i:2:p:255-261
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Prahinski, Carol & Kocabasoglu, Canan, 2006. "Empirical research opportunities in reverse supply chains," Omega, Elsevier, vol. 34(6), pages 519-532, December.
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    Citations

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    Cited by:

    1. Gianfranco Walsh & Daniel Brylla, 0. "Do product returns hurt relational outcomes? some evidence from online retailing," Electronic Markets, Springer;IIM University of St. Gallen, vol. 0, pages 1-11.
    2. repec:eee:joreco:v:29:y:2016:i:c:p:92-103 is not listed on IDEAS
    3. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    4. Xu, Xun & Munson, Charles L. & Zeng, Shuo, 2017. "The impact of e-service offerings on the demand of online customers," International Journal of Production Economics, Elsevier, vol. 184(C), pages 231-244.
    5. Mandana Izadi & Ezatallah Asghari Zadeh, 2015. "Prioritization of Factors affecting Online Customers' Loyalty in E-commerce Using Topsis and Numerical Taxonomy Methods," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(7), pages 213-225, July.
    6. Ramanathan, Ramakrishnan & Ramanathan, Usha & Hsiao, Hsieh-Ling, 2012. "The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects," International Journal of Production Economics, Elsevier, vol. 140(2), pages 934-943.
    7. repec:spr:elmark:v:27:y:2017:i:4:d:10.1007_s12525-016-0240-3 is not listed on IDEAS
    8. repec:spr:annopr:v:240:y:2016:i:2:d:10.1007_s10479-014-1592-8 is not listed on IDEAS
    9. Zhang, Tao & Li, Gang & Cheng, T.C.E. & Lai, Kin Keung, 2017. "Welfare economics of review information: Implications for the online selling platform owner," International Journal of Production Economics, Elsevier, vol. 184(C), pages 69-79.
    10. Chen, Jing & Bell, Peter C., 2012. "Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure," International Journal of Production Economics, Elsevier, vol. 136(1), pages 56-66.

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