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An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce

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  • Ramanathan, Ramakrishnan

Abstract

Using data from online customer ratings, we explore how the relationships between performance of companies in handling product returns and customer loyalty are affected by risk characteristics of products. Our results show that handling product returns plays an important role in shaping customer loyalty for low-risk products and also for high-risk products but not for products that exhibits medium levels of risk. These results have implications for website managers and development of reverse-logistics channels in the internet supply chains.

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  • Ramanathan, Ramakrishnan, 2011. "An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce," International Journal of Production Economics, Elsevier, vol. 130(2), pages 255-261, April.
    • Handle: RePEc:eee:proeco:v:130:y:2011:i:2:p:255-261
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    Cited by:

    1. Meherishi, Lavanya & Narayana, Sushmita A. & Ranjani, K.S., 2021. "Integrated product and packaging decisions with secondary packaging returns and protective packaging management," European Journal of Operational Research, Elsevier, vol. 292(3), pages 930-952.
    2. Jing Chen & Bintong Chen, 2016. "Competing with customer returns policies," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2093-2107, April.
    3. Lin, Winston T. & Chen, Yueh H. & Chou, Chia-Ching, 2021. "Assessing the business values of e-commerce and information technology separately and jointly and their impacts upon US firms' performance as measured by productive efficiency," International Journal of Production Economics, Elsevier, vol. 241(C).
    4. Grzegorz Chodak, 2020. "The problem of shelf-warmers in electronic commerce: a proposed solution," Information Systems and e-Business Management, Springer, vol. 18(2), pages 259-280, June.
    5. T. M. Rofin & Biswajit Mahanty, 2018. "Optimal dual-channel supply chain configuration for product categories with different customer preference of online channel," Electronic Commerce Research, Springer, vol. 18(3), pages 507-536, September.
    6. José L. Vilar-Zanón & Eduardo Vilar & Antonio Heras, 2017. "Online product returns risk assessment and management," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 445-466, October.
    7. Javed, Muhammad Kashif & Wu, Min, 2020. "Effects of online retailer after delivery services on repurchase intention: An empirical analysis of customers’ past experience and future confidence with the retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Mandana Izadi & Ezatallah Asghari Zadeh, 2015. "Prioritization of Factors affecting Online Customers' Loyalty in E-commerce Using Topsis and Numerical Taxonomy Methods," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(7), pages 213-225, July.
    9. OĞUZ Suzan & YAŞAR DİNÇER Fatma Cande & YİRMİBEŞOĞLU Gözde, 2022. "E-Commerce In Eu Countries And Turkey: An Econometric Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(3), pages 152-161, December.
    10. Wiyada Thitimajshima & Vatcharaporn Esichaikul & Donyaprueth Krairit, 2018. "A framework to identify factors affecting the performance of third-party B2B e-marketplaces: A seller’s perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 129-147, May.
    11. Martínez-López, Francisco J. & Feng, Changyuan & Li, Yangchun & López-López, David, 2022. "Using instant refunds to improve online return experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    12. Ramanathan, Ramakrishnan & Ramanathan, Usha & Hsiao, Hsieh-Ling, 2012. "The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects," International Journal of Production Economics, Elsevier, vol. 140(2), pages 934-943.
    13. Gianfranco Walsh & Daniel Brylla, 2017. "Do product returns hurt relational outcomes? some evidence from online retailing," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 329-339, November.
    14. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    15. Xu, Xun & Jackson, Jonathan E., 2019. "Investigating the influential factors of return channel loyalty in omni-channel retailing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 118-132.
    16. Yin Ma & Athapol Ruangkanjanases & Shih-Chih Chen, 2019. "Investigating the Impact of Critical Factors on Continuance Intention towards Cross-Border Shopping Websites," Sustainability, MDPI, vol. 11(21), pages 1-17, October.
    17. Wang, Yacan & Zhu, Quan & Krikke, Harold & Hazen, Benjamin, 2020. "How product and process knowledge enable consumer switching to remanufactured laptop computers in circular economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    18. Pappas, Nikolaos, 2016. "Marketing strategies, perceived risks, and consumer trust in online buying behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 92-103.
    19. Tiaojun Xiao & Jing Shi, 2016. "Consumer returns reduction and information revelation mechanism for a supply chain," Annals of Operations Research, Springer, vol. 240(2), pages 661-681, May.
    20. Zhang, Tao & Li, Gang & Cheng, T.C.E. & Lai, Kin Keung, 2017. "Welfare economics of review information: Implications for the online selling platform owner," International Journal of Production Economics, Elsevier, vol. 184(C), pages 69-79.
    21. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    22. Chen, Jing & Bell, Peter C., 2012. "Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure," International Journal of Production Economics, Elsevier, vol. 136(1), pages 56-66.
    23. Qiuxiang Li & Mengnan Shi & Yimin Huang, 2019. "A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors," IJERPH, MDPI, vol. 16(11), pages 1-21, June.
    24. Xu, Xun & Munson, Charles L. & Zeng, Shuo, 2017. "The impact of e-service offerings on the demand of online customers," International Journal of Production Economics, Elsevier, vol. 184(C), pages 231-244.

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