Design and development of a model and optimal planning for supply chain responsibility towards the environment

The responsible management of product return flows in production and inventory environments is a rapidly increasing requirement for companies. This can be attributed to economic, environmental and/or regulatory motivations. Mathematical modeling of such systems has assisted decision-making processes and provided a better understanding of the behavior of such production and inventory environments. This paper reviews the literature on the modeling of reverse logistics inventory systems based on the economic order/production quantity (EOQ/EPQ) and the joint economic lot size (JELS) settings to systematically analyze the mathematics involved in capturing the main characteristics of related processes. The literature is surveyed and classified according to the specific issues faced and modeling assumptions. Special attention is given to environmental issues. There are indications of the need for reverse logistics models' mathematics to follow current trends in ‘greening’ inventory and supply-chain models. The modeling of waste disposal, greenhouse-gas emissions, and energy consumption during production is considered as the most pressing priority for the future of reverse logistics models. An illustrative example for modeling reverse logistics inventory models with environmental implications is presented.

A Cross-National Service Strategy to Manage Product Returns: E-Tailers’ Return Policies and the Legitimating Role of the Institutional Environment

Global e-tailers face product returns from across the world, but research on service strategies for successful product return handling in culturally diverse markets is virtually nonexistent. This study examines the drivers of product return–related customer behavior across Western and Eastern cultures. Using a multimethod approach comprising two surveys and one experiment, results from the major Western (United States) and Eastern (China) retail markets show varying patterns for product return behavior and a uniform pattern for repurchase intention. Specifically, return policies that imply high effort restrictiveness decrease product returns in Western but not Eastern cultures, while the perceived customer-oriented institutional environment increases product returns in Eastern but not Western cultures. For repurchase intention, we find that effort restrictiveness in both cultures decreases repurchase intention, while the perceived customer-oriented institutional environment increases repurchase intention. We also find self-interest and legitimacy as the mechanisms responsible for the effect of perceived institutional environment, an important context variable in international marketing that has been neglected in the product return context. These findings enhance our understanding of product returns in different cultural environments and offer valuable insights for an adequate service strategy in product return management by global e-tailers.

The impact of online reviews on product returns

PurposeThe value of online reviews has been well documented by academics and practitioners. However, to maximise the benefits of consumer reviews, online sellers must avoid the negative consequences associated with customer feedback, such as reputation loss, or product returns after purchase. In developing a better understanding of the relationships between online reviews and their potential for negative impacts, this research aims to explore product returns. Through a quantitative model, this research demonstrates why online reviews can result in product return behaviours.Design/methodology/approachThe hypotheses were tested via two studies. In Study 1, the authors examine the direct effects of review valence and review volume on product returns by analysing secondary data on 4,995 stores on China's Taobao.com. Study 2 further extends and validates the findings of Study 1 with a survey sample of 795 participants across several online shopping platforms. This analysis examines the mechanics and conditions that influence the relationships between online reviews and product returns through partial least squares-structural equation modelling (PLS-SEM).FindingsThe results show that both review valence (i.e. average star ratings) and the number of reviews can increase the probability of product returns due to the high expectations that result from positive online reviews. Further, the effect of review valence on product returns is stronger for first-time purchasers at a store. In terms of mitigation, the analysis shows that bilateral communications between sellers and buyers can temper the unrealistic expectations set by positive reviews, leading to fewer product returns.Originality/valueThis research adds to the literature on online reviews by exploring the negative consequences of online reviews and the role they play in online purchasing decisions. The findings also provide direct evidence as to why online reviews can result in more product returns, adding clarity to extant research which contains conflicting conclusions as to how online reviews affect product return behaviours.

Factors affecting customer satisfaction on online shopping holiday

PurposeSingles' Day (SD) in China is the world's biggest online shopping event while consumer dissatisfaction is also on the rise. Both theory and practice need sharper insights to foster consumer satisfaction, but such knowledge remains sparse in the literature. The current study addresses this void by assessing the effects of online and offline retail service features on consumer satisfaction with SD.Design/methodology/approachA two-phase survey was implemented before and after the SD online shopping holiday, with 594 participants in China. Respondents were randomly selected from unique proprietary databases of merchants in the top-five online product categories in China.FindingsThe findings show that information quality, product quality and savings improve, but product return worsens, customer satisfaction with the online shopping holiday. However, good after-sale service can ease the product return process thereby boosting customer satisfaction.Originality/valueThis paper addresses a research void by studying effectiveness of retail service features on consumer satisfaction with online shopping festivals.

Customer Behavioral Reactions to Negative Experiences during the Product Return

This paper takes a closer look at customer experience during product return and the customer’s ability to share information about it. The research process included the development of research tools such as questionnaires. Anonymous surveys were conducted by computer assisted web interview among individual customers from Poland on a sample 327 respondents. Non-stratified random sampling was used, as we considered it to be the most effective in terms of the effort-benefit ratio of the survey. A contingency table was constructed from the responses, the observed values and expected values were compared, and the Pearson Chi-square and the p-value of Fisher’s exact test were calculated. The research process carried out as well as the analysis of the obtained results allowed us to respond to the research questions. As a result, it can be stated that the clients, both satisfied (80.1%) and dissatisfied (84,4%), tended to share their opinion about return experience with other potential clients. Moreover, 42.2% of the respondents declared that they would not buy again from a seller after an unsuccessful return operation. The presented conclusions enrich the theoretical understanding of customer behavior and their purchase intention. It also offers retailers a quantitative benchmark and new perspective on the design of return policy in order to improve customer satisfaction.