TY  - JOUR
AB  - Purpose The purpose of this paper is to study the effects of the requirement on product quality and refund (return service charge).Design/methodology/approach The authors set a minimum product quality level for platform to study the effects of the minimum product quality level on product quality and refund for risk-neutral sellers and risk-averse sellers, respectively.Findings For the risk-neutral sellers whose optimal product quality level is lower than the minimum level will improve the product quality to the minimum required level. However, under a certain condition with the requirement the sellers will increase refund. Similar results are found when uncertainty is incorporated into demand and return quantity. In addition, how the sellers’ optimal refund is affected by market parameters and market volatile factors is discussed. Specially, the correlation between the uncertainty of the demand and the return quantity affects sellers’ optimal decision of return service charge in many ways.Originality/value The obtained results can provide operational managers in reality with valuable suggestions in quality management for platform.
VL  - 46
IS  - 7
SN  - 0368-492X
DO  - 10.1108/K-02-2017-0052
UR  - https://doi.org/10.1108/K-02-2017-0052
AU  - Hou Huijun
AU  - Cheng Xiaoying
PY  - 2017
Y1  - 2017/01/01
TI  - Effects of platform quality requirement on sellers
T2  - Kybernetes
PB  - Emerald Publishing Limited
SP  - 1204
EP  - 1222
Y2  - 2024/04/24
ER  -