Publication Type
Journal Article
Version
acceptedVersion
Publication Date
3-2017
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.
Keywords
Product return, Product exchange and refund, Umbrella branding, Nested logit, Multinomial logit
Discipline
Marketing | Sales and Merchandising
Research Areas
Marketing
Publication
Marketing Letters
Volume
28
Issue
1
First Page
113
Last Page
125
ISSN
0923-0645
Identifier
10.1007/s11002-015-9393-7
Publisher
Springer Verlag (Germany)
Citation
HAN, Yoonju; CHANDUKALA, Sandeep R.; and CHE, Hai.
Exchange and Refund of Complementary Products. (2017). Marketing Letters. 28, (1), 113-125.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/4897
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s11002-015-9393-7