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Article
Publication date: 2 August 2022

Shilpi Saxena, Vaibhav Chawla and Jaana Tähtinen

Research regarding the quality of e-tailers’ service during product returns is sparse and the little that has been performed treats returns as recovery from failure. However, that…

Abstract

Purpose

Research regarding the quality of e-tailers’ service during product returns is sparse and the little that has been performed treats returns as recovery from failure. However, that view is outdated. E-tailers' product return practices have substantially evolved and customers' return behavior has considerably increased, in turn, influencing expectations of customers. Thus, a need arises to revise the understanding of how customers evaluate the quality of e-tailers' service during product returns. This study conceptualizes customer-perceived e-return service quality, identifies e-return's current dimensions, and offers directions for measurement.

Design/methodology/approach

This study is conducted in two stages. The first stage follows an abductive approach, with a continuous back-and-forth movement between existing theory and two qualitative data sets to identify the dimensions of e-return service quality. Scale development process is started in the second stage to offer directions for measurement based on the empirically grounded dimensions.

Findings

The conceptualization of e-return service quality identifies six dimensions: (1) owning of responsibility, (2) return convenience, (3) return remedies, (4) service team support, (5) site's return friendliness, and (6) returns diligence. The factor analysis supports the six-factor solution that can be employed for developing a valid scale in future.

Practical implications

The study suggests that e-tailers who are looking to differentiate themselves through superior e-return service quality should focus on customizing their service through excellent performance on these dimensions.

Originality/value

The paper updates and refines the understanding of service quality in the context of product returns service provided by e-tailers and thus offers a novel contribution.

Details

Journal of Service Theory and Practice, vol. 32 no. 5
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 1 September 2022

Chitresh Kumar and Anirban Ganguly

This study aims to investigate the conditions for the financial feasibility of an incentive-based model for self-drop or crowdsourced drop of the product to be returned at…

Abstract

Purpose

This study aims to investigate the conditions for the financial feasibility of an incentive-based model for self-drop or crowdsourced drop of the product to be returned at designated drop boxes (thereby ensuring a contactless process).

Design/methodology/approach

Constraint-based non-linear mathematical modeling was done for cost differential with and without crowdsourcing. This was analyzed against returns on investment for the installed infrastructure. Scenarios were looked into from the linear, iso-elastic and logarithmic demand functions to identify the optimal incentive policy. The results were further evaluated using “willingness to return” for customer willingness for product returns via drop boxes.

Findings

Crowdsourcing is viable when product returns are no more than 15%–20% of the overall products, with a logistics cost differential of 15%–25%. These were only viable when the product return incentive was within the range of 15%–20% of the product cost, as well as the penalty was in the range of 25 to 40% for wrong returns.

Research limitations/implications

The findings are expected to aid the organizations in successfully designing product return policies while adhering to the post-COVID-19 norms, including contactless transactions and social distancing.

Originality/value

The study provides a look into the viability sensitivity of effective gains/profitability against the required level of service for returns, wrong returns, penalties and incentives for crowdsourcing in a developing country like India.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 13 April 2015

Jiaping Xie, Zhong June Li, Yong Yao and Ling Liang

The purpose of this paper is to investigate the dynamic acquisition pricing strategy for collecting used products (also known as cores or returns) in a finite planning horizon. In…

Abstract

Purpose

The purpose of this paper is to investigate the dynamic acquisition pricing strategy for collecting used products (also known as cores or returns) in a finite planning horizon. In particular, this paper studies a cost-minimization model in which a firm offers acquisition price that impacts the quantity of the returns, and remanufactures the used product to satisfy the customer demand.

Design/methodology/approach

This paper uses multi-period stochastic dynamic programming theory to model a remanufacturing system that faces the random demand for remanufactured products. The number of the returns at each period is uncertain and increases linearly with the acquisition price offered.

Findings

The study shows that when the uncertainty of demand for remanufactured products increases, the remanufacturer should hold a higher core stock level to minimize the expected total cost and thus a higher acquisition price is needed to attract returns. However, given demand uncertainty, the optimal price decreases in the initial core stock level in each period. It also indicates that the optimal acquisition price increases in the variance of the returns, but decreases in the mean of the returns.

Practical implications

The findings suggest that a remanufacturer could reduce the expected total cost by adjusting the acquisition price according to the number of returns periodically.

Originality/value

Introducing the impact of supply uncertainty on the acquisition price of used products, this paper uses a multi-period dynamic model, instead of single period model in previous studies, to examine the remanufacturer’s dynamic acquisition pricing policy.

Details

Industrial Management & Data Systems, vol. 115 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 25 October 2019

Saurabh Agrawal and Rajesh Kumar Singh

Forecasting product returns plays an important role in the operations of reverse logistics (RL). However, their contribution to sustainability performance is yet to be explored…

1135

Abstract

Purpose

Forecasting product returns plays an important role in the operations of reverse logistics (RL). However, their contribution to sustainability performance is yet to be explored. The purpose of this paper is to explore the product returns in Indian electronics industry and examine the relationship of forecasting product returns with triple bottom line performance of RL.

Design/methodology/approach

In this study, based on past literature review, four hypotheses, relating to forecasting of product returns and its association with performance, were developed. A questionnaire was sent to 700 respondents from the Indian electronics industry. Overall, 208 received responses were found suitable for the research. The necessary statistical analysis was carried out to ensure the reliability and validity of the questionnaire. In order to test different hypotheses, partial least square path modelling (PLSPM) technique of structural equation modeling was utilized.

Findings

Measurement model had shown sufficient data fit for the modeling. PLSPM results reveal that the accuracy in forecasting product returns is positively associated with operational performance of RL. It also plays an important role in the sustainability efforts of an organization.

Research limitations/implications

Managers can utilize results of study for exploring and emphasizing issues of product returns for improving RL performance. One of the limitations is that data are collected only from Indian electronics industry. Another limitation is that only product returns are considered for the operational and TBL performance of RL. In future, study may be carried out considering different factors in other sectors and countries.

Originality/value

The intent of forecasting product returns is considered to be operational efficiency. It can make significant contributions to the sustainability efforts of an organization. Review of the past literature indicates that research in the field of RL is in developing stage, and issues related to forecasting product returns are under-represented. The paper adds value to the few available articles on product returns.

Details

Management of Environmental Quality: An International Journal, vol. 31 no. 5
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 6 June 2016

Sander de Leeuw, Beatriz Minguela-Rata, Ehsan Sabet, Jaap Boter and Runa Sigurðardóttir

The purpose of this paper is to investigate how online apparel retailers make trade-offs in achieving efficiency in handling consumer returns, attempting to reduce the number of…

3461

Abstract

Purpose

The purpose of this paper is to investigate how online apparel retailers make trade-offs in achieving efficiency in handling consumer returns, attempting to reduce the number of consumer returns they are faced with and increasing sales through returns management.

Design/methodology/approach

The authors use literature to develop propositions and employed a case study research design to understand how online apparel retailers make trade-offs in returns management practices in order to verify the propositions. Case study subjects have been anonimized.

Findings

The authors have developed and verified five propositions with the aim to understand how retailers make trade-offs in reducing the number of online consumer returns, increasing the effectiveness of handling online consumer returns and increasing sales through returns management.

Research limitations/implications

The research is limited by the use of interview data from cases, a focus on apparel retail only and by the use of companies located in the Netherlands only.

Practical implications

The propositions help managers make trade-offs in reducing the number of returns versus increasing sales through returns management versus increasing the effectiveness of handling consumer returns.

Social implications

Consumer returns lead to a significant flow of items from consumers back to online retailers, in particular in fashion. Reduction of this flow decreases social and environmental impacts through reduced transport and handling requirements.

Originality/value

Several authors identify that more empirical research is welcome in the area of returns management. The research aims to contribute to this gap by focussing at how online apparel retailers make trade-offs in achieving efficiency in handling returns, increasing sales through returns management and attempting to reduce the number of consumer returns they receive.

Details

International Journal of Operations & Production Management, vol. 36 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 14 August 2017

G. Peter Dapiran and Booi H. Kam

Product returns management (PRM) is a core supply chain management process. Though the importance of value creation and appropriation is acknowledged, extant studies on value in…

1603

Abstract

Purpose

Product returns management (PRM) is a core supply chain management process. Though the importance of value creation and appropriation is acknowledged, extant studies on value in product returns tend to be limited to the residual asset value (cost recovery) of the returned products. Further, value discussion in PRM is limited to the value implications for a single party in the returns transaction rather than all the product returns chain entities. The purpose of this paper is to explore value creation and appropriation in a triad of supplier-retailer-3PL in the product returns chain.

Design/methodology/approach

The study uses an inductive qualitative approach. Semi-structured interviews with executives in a triad of organisations formed the primary data source for the study.

Findings

The paper identifies six value drivers and develops a value creation and appropriation framework. It shows that facilitation, value orientation, process alignment and relational factors are key drivers of value creation and appropriation in PRM.

Research limitations/implications

The findings reinforce the view that value creation and appropriation are the outcomes of multi-party interactions in a product return chain. The framework presented contributes to the literature by showing the linkages amongst key drivers.

Practical implications

The findings show the important role of external process facilitation and how a 3PL contributes to value creation in a triadic relationship.

Originality/value

Research based on a triadic product returns chain is a unique dimension of this study.

Details

The International Journal of Logistics Management, vol. 28 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 2 August 2013

Michael Bernon, John Upperton, Marko Bastl and John Cullen

– The purpose of this paper is to empirically explore supply chain integration (SCI) enabling practices, their benefits and barriers in a retail product returns process context.

3514

Abstract

Purpose

The purpose of this paper is to empirically explore supply chain integration (SCI) enabling practices, their benefits and barriers in a retail product returns process context.

Design/methodology/approach

The study adopts a case study research strategy. It draws on a single case, comprised of an original equipment manufacturer (OEM) and its two retailers. It utilizes an in-depth semi structured interviewing approach, combined with walk-through observations.

Findings

The study finds that management of retail product returns can significantly benefit both an OEM and its customers when appropriate SCI enabling practices are deployed. While these practices are similar to those in forward supply chain processes, barriers are driven by the characteristics of product returns processes.

Research limitations/implications

The limitations of this study stem primarily from its methodological design. A single case research strategy provides a limited opportunity for external generalization of the research findings.

Practical implications

This study illustrates the value of SCI initiatives in product returns processes and informs managers ' decision making in the planning and execution of similar SCI implementations in product returns processes.

Originality/value

This research claims to be one of the first works that systematically and empirically explores SCI in reverse supply chain processes, as opposed to forward supply chain processes.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 June 2005

Karl Inderfurth

Remanufacturing of used products is an emerging business area, which is attractive from both an economic and an environmental point of view. Aims to investigate to what extent…

3022

Abstract

Purpose

Remanufacturing of used products is an emerging business area, which is attractive from both an economic and an environmental point of view. Aims to investigate to what extent profit orientation in product recovery management will stimulate an environmentally conscious behavior in the sense that it promotes high recovery levels. This study also seeks to focus on a product recovery system where, in the context of extended product responsibility, a manufacturer of original products is also engaged in remanufacturing used products taken back from its customers.

Design/methodology/approach

For this type of a closed‐loop supply chain the optimal recovery and production policy is evaluated. By a numerical analysis, it is shown how cost‐efficient decision making affects the product recovery behavior. In a sensitivity analysis it is evaluated how various problem determinants influence the preference for product recovery. Specifically, the impact of different sources of uncertainty is investigated.

Findings

Taking advantage of the respective insights, it is discussed which measures can be taken to harmonize economical and environmental‐driven behavior in product recovery management. It is shown that uncertainty in returns and demands can be a considerable obstacle to follow a consequently environmental‐benign recovery strategy within a reverse logistics system.

Research limitations/implications

The analysis in this paper is restricted to stationary demand and return patterns. In a non‐stationary situation the impact of uncertainties could be even stronger, since excessive returns might happen more often.

Originality/value

Focuses on important issues in product recovery management.

Details

International Journal of Physical Distribution & Logistics Management, vol. 35 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 9 May 2016

Yi-Chun Huang, Min-Li Yang and Ying-Jiuan Wong

This study aims to explore the relationships among institutional pressures, commitment of resources and returns management. Returns management is regarded as a part of supply…

1447

Abstract

Purpose

This study aims to explore the relationships among institutional pressures, commitment of resources and returns management. Returns management is regarded as a part of supply chain management. However, the research in returns management has received much less attention. To bridge the gap, this study concerns key concepts from two important schools of thought, i.e. institutional theory and the resource-based view, to build up the research model.

Design/methodology/approach

Retailers and maintenance providers in the 3C industry (computers, communication and consumer electronics) in Taiwan were surveyed, and the statistical methods of hierarchical and moderated regression were used to examine the relationships among institutional pressures, commitment of resources and returns management.

Findings

Institutional pressures, comprising non-market and market pressures, affect the implementation of returns management (product return practices and product recovery practices). Commitments of resources positively and significantly moderate the relationship between the pressures imposed by non-market and market actors and product return practices and product recovery practices.

Research limitations/implications

This study investigates only the factors that drive returns management. Future research can examine the relationship between the antecedents and consequences of returns management. Furthermore, returns management may become increasingly critical for firms to develop and perform corporate social responsibility (CSR). Therefore, future research can investigate the relationship between CSR practices and returns management.

Practical implications

This research suggests that managers under institutional pressures should continually pay attention to the effects of external factors on returns management. Additionally, the results reveal that a commitment of resources can reinforce the relationship between the pressures imposed by non-market and market actors and the implementation of returns management. Under significant institutional pressures and resource constraints, managers may increase the effectiveness of returns management while attending to the concerns of non-market and market actors.

Originality/value

This study presents a model that considers three major explicative variables: institutional pressures, resources commitment and returns management. It is the first investigation to integrate three streams of literature on institutional theory, the resource-based view and returns management.

Details

Supply Chain Management: An International Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 7 April 2022

Yudi Fernando, Muhamad Fairuz Ahmad Jasmi, Ika Sari Wahyuni-TD, Fineke Mergeresa, Kamarul Azman Khamis, A. Fakhrorazi and Rusdi Omar

Halal frozen meat product returns are major challenges in the halal frozen meat supply chain because of the sheer volume and processing costs of returns. The purpose of this paper…

1115

Abstract

Purpose

Halal frozen meat product returns are major challenges in the halal frozen meat supply chain because of the sheer volume and processing costs of returns. The purpose of this paper is to investigate the effect of integrated halal supply chain (IHSC) strategies on effective product returns with halal logistics (HL) as an interceding variable.

Design/methodology/approach

This paper used the cross-sectional technique to select samples from a population that revolved around the halal food industry in Malaysia. Data collected from halal service providers who handle halal frozen meat product returns provided insightful findings.

Findings

The findings of this paper indicate that the IHSC dimensions, such as interactive fairness, procedural fairness and service coverage, are positively associated with effective product returns. It also shows that HL plays a mediating role between the IHSC and effective product returns.

Practical implications

From a practical viewpoint, this paper suggests that an effective return service system can be designed to emphasise the category of interactive and flexible justice services through refunds or product replacement, depending on customer's demand.

Originality/value

The result of this paper provides insights into how logistics service provider managers effectively and efficiently handle the halal supply chain network when involving product returns.

Details

Journal of Islamic Marketing, vol. 14 no. 5
Type: Research Article
ISSN: 1759-0833

Keywords

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