Product returns can be an enormous drain on revenue. Increasing return rates negatively impact the retailer's cost structure due to distribution and labor costs, which in turn lowers gross margin. There is the money to be refunded to customers, plus the cost of repackaging, restocking and reselling the returned items. This is why exploring and better understanding consumer orientation toward return behavior is essential for the success of every business. The focus of this paper will be consumer buying behavior as the key driver of product returns. The presentation will address consumer impulse purchases versus planned buying and examine their relationship with frequency of returns and consideration of return policies. The researcher will conduct a survey sample of college students comparing two groups of people who bought the same type of product but with different purposes (one for utilitarian purpose, the other for hedonic). The results will explore the associated feeling with product returns - guilt, regret, embarrassment, etc. and the post-purchase information search. Additionally, they will discuss value perception of return policy (strict return policies vs. generous ones).
|Presenter:||Milena Vangelova (Undergraduate Student)|
|Time:||2 pm Session III|