Effect of effort and deadlines on consumer product returns

Abstract While extant research has examined return policies as a combination of time and effort, we investigate both the independent and interactive impacts of time and effort on consumer decisions to return or retain products. We find that decreasing return deadlines can have the counterintuitive effect of increasing return rates under some conditions. Using construal level theory, we propose that perceived effort (both physical and cognitive) mediates the effect of return policy on return rates leading to suppressed returns. Further, when deadlines are framed as durations between store visits, overall product returns are exacerbated except when perceived effort is high.

[1]  Wujin Chu,et al.  Controlling product returns in direct marketing , 1996 .

[2]  Scott M. Davis,et al.  Money back guarantees in retailing: matching products to consumer tastes , 1995 .

[3]  Ayelet Gneezy,et al.  Procrastination of Enjoyable Experiences , 2010 .

[4]  J. Stock,et al.  MANY HAPPY (PRODUCT) RETURNS , 2002 .

[5]  Yaacov Trope,et al.  Construal Level and Procrastination , 2008, Psychological science.

[6]  Michael R. Hagerty,et al.  Return Policies and the Optimal Level of "Hassle" , 1998 .

[7]  H. S. Krishnan,et al.  Prospective and Retrospective Memory for Intentions: A Two-Component Approach , 1999 .

[8]  Stacy L. Wood Remote Purchase Environments: The Influence of Return Policy Leniency on Two-Stage Decision Processes , 2001 .

[9]  James R. Bettman,et al.  Unstuck from the concrete: Carryover effects of abstract mindsets in intertemporal preferences , 2010 .

[10]  Ellen Garbarino,et al.  Cognitive Effort, Affect, and Choice , 1997 .

[11]  Yaacov Trope,et al.  Construal levels and self-control. , 2006, Journal of personality and social psychology.

[12]  D. Mackinnon,et al.  Estimating Mediated Effects in Prevention Studies , 1993 .

[13]  Yeon-Koo Che Customer Return Policies for Experience Goods , 1996 .

[14]  Y. Trope,et al.  The role of feasibility and desirability considerations in near and distant future decisions: A test of temporal construal theory. , 1998 .

[15]  N. Roese,et al.  Regulatory focus and temporal distance , 2003 .

[16]  Xuanming Su,et al.  Consumer Returns Policies and Supply Chain Performance , 2008, Manuf. Serv. Oper. Manag..

[17]  D. Firth Bias reduction of maximum likelihood estimates , 1993 .

[18]  Dubravko Radic,et al.  Rating E-Tailers' Money-Back Guarantees , 2008 .

[19]  I. Png,et al.  Returns Policies: Make Money by Making Good , 1995 .

[20]  Nira Liberman,et al.  Temporal construal effects on abstract and concrete thinking: consequences for insight and creative cognition. , 2004, Journal of personality and social psychology.

[21]  H. Heckhausen,et al.  Deliberative and implemental mind-sets: Cognitive tuning toward congruous thoughts and information , 1990 .

[22]  John T. Gourville,et al.  Payment Depreciation: The Behavioral Effects of Temporally Separating Payments from Consumption , 1998 .

[23]  George A. Akerlof Procrastination and Obedience , 1991 .

[24]  James M. Lattin,et al.  A Two-State Model of Purchase Incidence and Brand Choice , 1991 .

[25]  J. Petersen,et al.  Are Product Returns a Necessary Evil? Antecedents and Consequences , 2009 .

[26]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.