IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v28y2017i1d10.1007_s11002-015-9393-7.html
   My bibliography  Save this article

Exchange and refund of complementary products

Author

Listed:
  • Yoonju Han

    (Indiana University)

  • Sandeep R. Chandukala

    (Singapore Management University)

  • Hai Che

    (Indiana University)

Abstract

A common dilemma a consumer faces during product return pertains to the decision of exchanging the product or obtaining a refund. This issue becomes even more salient for durable goods, when the initial purchase involves complementary products from different categories. This research examines consumer’s trade-off decision between returning and keeping complementary products by exploring various retail actions (using umbrella branded products (UBP)) and customer characteristics. We also investigate the trade-off between product exchange and refund when consumer returns a product. We find interesting extensions to past research wherein UBP are returned less and result in greater exchange than refund. Furthermore, an interesting caveat is that higher degree of complementarity between UBP intensifies the impact of various factors on exchange as opposed to refund of products. Implications for retail managers and sales teams are explored.

Suggested Citation

  • Yoonju Han & Sandeep R. Chandukala & Hai Che, 2017. "Exchange and refund of complementary products," Marketing Letters, Springer, vol. 28(1), pages 113-125, March.
    • Handle: RePEc:kap:mktlet:v:28:y:2017:i:1:d:10.1007_s11002-015-9393-7
    DOI: 10.1007/s11002-015-9393-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-015-9393-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-015-9393-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ryan Rahinel & Joseph P. Redden, 2013. "Brands as Product Coordinators: Matching Brands Make Joint Consumption Experiences More Enjoyable," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(6), pages 1290-1299.
    2. Jian Ni & Scott A. Neslin & Baohong Sun, 2012. "Database Submission--The ISMS Durable Goods Data Sets," Marketing Science, INFORMS, vol. 31(6), pages 1008-1013, November.
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    4. Maxim Sinitsyn, 2016. "Choosing the Quality of the Fit between Complementary Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(1), pages 161-178, March.
    5. Sridhar Moorthy & Kannan Srinivasan, 1995. "Signaling Quality with a Money-Back Guarantee: The Role of Transaction Costs," Marketing Science, INFORMS, vol. 14(4), pages 442-466.
    6. Eric T. Anderson & Karsten Hansen & Duncan Simester, 2009. "The Option Value of Returns: Theory and Empirical Evidence," Marketing Science, INFORMS, vol. 28(3), pages 405-423, 05-06.
    7. Maxim Sinitsyn, 2012. "Coordination of Price Promotions in Complementary Categories," Management Science, INFORMS, vol. 58(11), pages 2076-2094, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    2. Mostafa Rezaei & Ivor Cribben & Michele Samorani, 2021. "A clustering-based feature selection method for automatically generated relational attributes," Annals of Operations Research, Springer, vol. 303(1), pages 233-263, August.
    3. Kim, Junyong & Wansink, Brian, 2012. "How Retailers’ Recommendation and Return Policies Alter Product Evaluations," Journal of Retailing, Elsevier, vol. 88(4), pages 528-541.
    4. El Kihal, Siham & Nurullayev, Namig & Schulze, Christian & Skiera, Bernd, 2021. "A Comparison of Return Rate Calculation Methods: Evidence from 16 Retailers," Journal of Retailing, Elsevier, vol. 97(4), pages 676-696.
    5. Wenyan Zhou & Oliver Hinz, 2016. "Determining profit-optimizing return policies – a two-step approach on data from taobao.com," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 103-114, May.
    6. Chen, Jing & Chen, Bintong & Li, Wei, 2018. "Who should be pricing leader in the presence of customer returns?," European Journal of Operational Research, Elsevier, vol. 265(2), pages 735-747.
    7. Rokonuzzaman, Md & Iyer, Pramod & Harun, Ahasan, 2021. "Return policy, No joke: An investigation into the impact of a retailer's return policy on consumers' decision making," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    8. Daria Dzyabura & Siham El Kihal & John R. Hauser & Marat Ibragimov, 2023. "Leveraging the Power of Images in Managing Product Return Rates," Marketing Science, INFORMS, vol. 42(6), pages 1125-1142, November.
    9. Joon Yong Seo & Sukki Yoon & Milena Vangelova, 2016. "Shopping plans, buying motivations, and return policies: impacts on product returns and purchase likelihoods," Marketing Letters, Springer, vol. 27(4), pages 645-659, December.
    10. Jeffrey D. Shulman & Marcus Cunha & Julian K. Saint Clair, 2015. "Consumer Uncertainty and Purchase Decision Reversals: Theory and Evidence," Marketing Science, INFORMS, vol. 34(4), pages 590-605, July.
    11. Gianfranco Walsh & Michael Möhring, 2017. "Effectiveness of product return-prevention instruments: Empirical evidence," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 341-350, November.
    12. Zhang, Qiao & Chen, Jing & Chen, Bintong, 2021. "Information strategy in a supply chain under asymmetric customer returns information," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    13. Tridib Sharma & Levent Ülkü, 2015. "Money-Back Guarantees," Working Papers 1502, Centro de Investigacion Economica, ITAM.
    14. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    15. Petrikaitė, Vaiva, 2018. "A search model of costly product returns," International Journal of Industrial Organization, Elsevier, vol. 58(C), pages 236-251.
    16. Elie Ofek & Zsolt Katona & Miklos Sarvary, 2011. ""Bricks and Clicks": The Impact of Product Returns on the Strategies of Multichannel Retailers," Marketing Science, INFORMS, vol. 30(1), pages 42-60, 01-02.
    17. Anthony Dukes & Yi Zhu, 2019. "Why Customer Service Frustrates Consumers: Using a Tiered Organizational Structure to Exploit Hassle Costs," Marketing Science, INFORMS, vol. 38(3), pages 500-515, May.
    18. Jung, Heonsoo, 2011. "Signaling quality with new product preannouncements: Vaporware and the role of reference quality," Journal of Business Research, Elsevier, vol. 64(11), pages 1251-1258.
    19. Chen, Bintong & Chen, Jing, 2017. "Compete in Price or Service?—A Study of Personalized Pricing and Money Back Guarantees," Journal of Retailing, Elsevier, vol. 93(2), pages 154-171.
    20. Michele Samorani & Aydın Alptekinoğlu & Paul R. Messinger, 2019. "Product Return Episodes in Retailing," Service Science, INFORMS, vol. 11(4), pages 263-278, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:mktlet:v:28:y:2017:i:1:d:10.1007_s11002-015-9393-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.