Product Returns in a Digital Era: The Role of Multidimensional Cognitive Dissonance, Regret, and Buying Context in the Post-purchase Appraisal Process

The retailing industry is battling a behemoth – the escalating problem of product returns. The problem is of a graver import for e-tailers. However, the underlying cognitive and affective appraisal process that leads to product returns in case of online purchase still remains unclear. The liberal product returns environment in the context of online purchase has led consumers to proactively consider the option of decision reversal. Nevertheless, the impact of the initial buying context on the post-purchase appraisal process has been neglected in previous studies. To bridge the gaps found after evaluating the current gamut of research work conducted on this topic, a mixed-method approach was employed in the present study. Using in-depth semi-structured interviews (N = 42), the first qualitative study identified three online purchase situations (unplanned, purchase-for-trial and opportunism buying) that frequently provoke product returns. Additionally, the qualitative uncovered the salient post-purchase appraisal factors. To empirically test the underlying appraisal process and the differences caused by the buying situations, a quantitative study was conducted, using scenario-based experiment (N = 620). Findings suggest that contrary to recent studies (e.g., Lee, 2015; Powers & Jack, 2013), cognitive dissonance is not the immediate cause of product returns. It is the affective factor, regret, which leads to decision reversal. Additionally, in opposition to the claim of previous literature that high coping potential reduces stress, this study suggests that the ability to reverse the decision actually increases regret and, in turn, leads to product returns. Results also indicate that buying context (e.g., different buying situations) causes difference in serial mediation pathways from both primary and secondary appraisal to product returns likelihood. E-tailers should utilise consumers’ behavioural profile in order to classify different consumer groups and tailor the means to manage product returns accordingly

Consumer behaviour and order fulfilment in online retailing – a systematic review

This paper provides a systematic review of consumer behaviour and order fulfilment in online retailing. The objective of this review is threefold: first, to identify elements of order‐fulfilment operations that are relevant to online consumer behaviour (purchase, repurchase, product return); second, to understand the relationship between order‐fulfilment performance and consumer behaviour; and third, to inspire future research on developing consumer service strategies that takes account of these behavioural responses to order‐fulfilment performance outcomes. The paper is based on a systematic review of literature on online consumer behaviour and order‐fulfilment operations, mainly in the fields of marketing and operations, published in international peer‐reviewed journals between 2000 and September 2015. This study indicates that the current literature on online consumer behaviour focuses mainly on the use of marketing tools to improve consumer service levels. Very little research has been conducted on the use of consumer service instruments to steer consumer behaviour or, consequently, to manage related order‐fulfilment activities better. The study culminates in a framework that encompasses elements of order‐fulfilment operations and their relationship to online consumer behaviour. This paper is the first comprehensive review of online consumer behaviour that takes aspects of order‐fulfilment operations into account from both marketing and operations perspectives

Identifying consumer’s last-mile logistics beliefs in omni-channel environment

Over the past few years, retailers have offered new alternatives in last-mile logistics for consumers’ purchases; however, still, it is unclear why consumers select one option over another. A significant number of studies have tried to give some guidance, but very little research has considered the consumer’s point of view; specifically, in Omni-channel environment it has been undiscovered. To fulfil this gap, this study tends to identify some beliefs that may affect consumers’ behaviour in last-mile logistics. However, to validate these beliefs this study uses the Theory of Planned Behaviour (TPB) approach. Following the TPB, this study employs an online questionnaire to obtain 280 samples of Spanish students. The final results show that although some beliefs such as convenience, risk of time, and finances are consistent with previous studies, there are new salient beliefs in which have not been identified before: Accessibility & Comparability. As a conclusion, this study not only is an effective mechanism for predicting the intention of selecting a last-mile logistics by consumers, but also can be guidance and assistance for practitioners to develop proper strategies for facilitating consumer’s shopping journey, and ultimately, improving consumer’s satisfaction

Factors That Impacted Customer Retention of Banks. A Study of Recently Acquired Banks in the UPSA Area of Madina, Accra (Specifically Access Bank).

The Ghanaian Banking industry is highly competitive, with 25 universal banks and over 120 other financial institutions (PWC, 2012). Majority of these universal banks and other financial institutions’ products and service offerings are easy to replicate and when they provide nearly identical services, they can only differentiate themselves on the basis of price, better customer management and quality (Effah, 2012). Therefore, customer retention has become potentially an effective tool that banks can use to gain an invaluable edge and survive in Ghana’s increasingly competitive banking environment. Essential elements influencing customers’ selection of a bank include the range of services, rates, fees and prices charged (Abratt & Russell, 1999). It is obvious that superior service, alone, is not sufficient to satisfy customers. Prices are essential, if not more important than service and relationship quality. Furthermore, service excellence, meeting client needs, and providing innovative products are essential to succeed in the banking industry. Most of the banks claim that creating and maintaining customer relationships are important to them and they are aware of the positive values that relationships provide (Colgate et al., 1996). Although, several studies have emphasized the significance of customer retention in the banking industry, majority have failed to provide empirical justification that explains the customer’s repeat purchase from a behavioural perspective. Hence, this study examined the constructs that impacted consumers’ decision to exhibit repeat purchase from a behavioural perspective with their current banks in the UPSA area of Madina, Accra (specifically Access bank). The research design used for the study is descriptive research. An intercept approach which is a convenience sampling method or a non-probability sampling method was used to distribute and gather data using structured questionnaire. Results suggest that the most important constructs were customer satisfaction, followed by corporate image. There was also evidence that customers’ age groups and level of education contributed to explaining respondents' propensity to stay with their current banks. Keywords: customer retention, customer satisfaction, Ghanaian banking industry

A planned study of the impact of B2C logistics service quality on shopper satisfaction and loyalty

Purpose of the paper: This paper reports on an in-progress study of the impact of business to consumer (B2C) logistics service quality (LSQ) on in-store shopper satisfaction and loyalty. Methodology: A comparative research approach is being used across the UK, France and Germany to also investigate country-specific differences of consumer shopping behaviour and channel strategies. The first stage, in-line with a deliberate integrated supply chain approach, consists of structured in-depth interviews conducted with managers at the producer/retailer interface, e.g. producer category captains and retail category managers. This qualitative stage will be followed-up by a quantitative survey stage targeting consumers as shoppers to determine how their expectations of retail LSQ and associated activities influence their satisfaction and ongoing loyalty. Findings: A broad literature review has generated over 40 variables of interest for both LSQ and loyalty, and almost 10 variables of satisfaction. This study will contribute theoretically by considering a B2C setting for LSQ, which is the final aspect of point of origin to point-of-consumption, whereas most general LSQ literature and LSQ’s impact on customer satisfaction and loyalty has been dominated by business to business (B2B) designs from point-of-origin to point of sale, that is they assume consumer expectations are a given or a different domain. Research limitations: Although covering three major European grocery retail markets, this study might not be considered as representative, especially when adopting a world-wide perspective. Practical implications: As this study emphasises consequences of B2C LSQ on downstream or consumer satisfaction and loyalty, rather than considering the upstream origins of related problems that dominate extant research, it will contribute practically by providing managers with an understanding of the components of LSQ considered critical by consumers

Shipping and Return-Shipping Costs do not Cost the Same: The Role of Gender and Product Price in Online Buying

Shipping is one of the costliest elements of online retail; it is also a sore topic for consumers. There is still relatively little or no research that examines the relative role of shipping and return-shipping costs on consumers’ purchasing intentions. In this research, we examine two questions: what is the relative role of shipping and return-shipping costs on consumers’ purchase intentions. Secondly, how does gender moderate the relationships between the above costs and subsequent purchasing intentions? Data was collected using Amazon Mechanical Turk from respondents all over the US. The findings show that shipping costs impact purchasing decisions for both expensive and inexpensive products. However, return-shipping affects the purchasing intentions for costly products only, more so for males than for females. In all, the study makes a unique contribution by examining the shipping and return-shipping cost questions in online buying that are relatively understudied so far