Managing Opportunistic Consumer Returns in Retail Operations

2018 ◽  
Author(s):  
Mehmet Sekip Altug ◽  
Tolga Aydinliyim ◽  
Aditya Jain
Keyword(s):  
Retail Operations ◽  
Consumer Returns

Managing Opportunistic Consumer Returns in Retail Operations

2021 ◽  
Author(s):  
Mehmet Sekip Altug ◽  
Tolga Aydinliyim ◽  
Aditya Jain
Keyword(s):  
Operations Management ◽  
The United States ◽  
Unintended Consequences ◽  
Retail Operations ◽  
Short Term ◽  
Return Policies ◽  
Consumer Returns ◽  
Optimal Decisions ◽  
Cost Implications ◽  
Compare And Contrast

Retailers use lenient return policies to stimulate demand and increase revenues, as such policies help customers assess uncertain product valuations at low (or no) return cost and yield higher equilibrium prices. However, generous refunds also yield unintended consequences such as opportunistic returns, which take place when customers intentionally rent a product for short-term use. Accounting for 11% of all product returns in the United States in 2017, opportunistic returns prompt retailers to seek tactics to address adverse revenue and cost implications. We consider two alternative proposals using a price- and refund-setting newsvendor framework with two customer types: honest returners and renters. The first proposal, targeted-refunds, uses retail analytics firms to distinguish renters from honest returners and implements return policies tailored for each segment. The second proposal, menu-of-refunds, presents customers multiple price-refund pairs and lets them self-select. We compare and contrast the optimal decisions and the profit implications of both proposals with respect to two benchmark settings: one without any renters and another proposal, uniform-refunds, wherein the retailer merely reoptimizes its decisions while acknowledging that renters exist. We characterize the conditions under which the menu-of-refunds proposal separates customer types and thus matching or exceeding the performance of the targeted-refunds proposal. Furthermore, we study several alternative model specifications to confirm that our main finding concerning the effectiveness of the menu-of-refunds proposal is robust. This paper was accepted by Vishal Gaur, operations management.

Retail Store Service Quality: Insights from Indian Retail

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Ekta Duggal
Keyword(s):  
Economic Growth ◽  
Service Quality ◽  
Quality Parameters ◽  
Retail Store ◽  
Retail Sector ◽  
Retail Operations ◽  
Customer Needs ◽  
New Horizons ◽  
Quality Perceptions ◽  
Retail Structure

Services have surpassed other sectors in terms of contributing to the economic growth and enhancing consumers lifestyle. Retail in particular is touching new horizons by being organised and modernized. Retail structure has undergone tremendous transformation. Retail has found a prominent place in consumers life by providing them with enriched experiences. However, the inviting retail sector is not left untouched by the powerful environmental forces. As the modern retail opens up possibilities of profit and expansion, it also carries with it the risks associated with management of complex retail operations and the ever-changing customer needs and demands. Researchers and practitioners have identified service quality as a key to gain competitive superiority and sustain effectively in the marketplace. In this background, the present paper seeks to explore the service quality perceptions across demographics in order to understand the differences among the customer segments and thereby uncover crucial service quality parameters for the retailers to empahsise upon.

scholarly journals Consumer Neuroscience as a Tool to Monitor the Impact of Aromas on Consumer Emotions When Buying Food

2021 ◽  
Vol 11 (15) ◽  
pp. 6692
Author(s):  
Jakub Berčík ◽  
Katarína Neomániová ◽  
Jana Gálová ◽  
Anna Mravcová
Keyword(s):  
Aromatic Compounds ◽  
Competitive Environment ◽  
Retail Operations ◽  
Consumer Neuroscience ◽  
Wide Range ◽  
Consumer Emotions ◽  
Affective Processes ◽  
Effective Selection ◽  
The Subject ◽  
The Impact

Building a unique USP sales argument (unique selling proposition) through various forms of in-store communication comes to the fore in a challenging competitive environment. Scent as a means to influence the purchase of goods or services has a long history, however, aromachology as field of in-store communication is a matter of the present. This new trend, the importance and use of which has grown in recent years, is the subject of a wide range of research. In order to increase the efficiency of these elements, it is necessary to familiarise ourselves with the factors that affect the customer, whether that be consciously or unconsciously. Consumer neuroscience is addressed in this area. This paper deals with the comprehensive interdisciplinary investigation of the impact of selected aromatic compounds on consumer cognitive and affective processes as well as assessing the effectiveness of their implementation in food retail operations. At the end of the paper, we recommend options for the effective selection and implementation of aromatisation of different premises, by which the retailer can achieve not only a successful form of in-store communication, but also an increase the retail turnover of the store.

Personal attributes associated with successful management in the hospitality industry - a pilot study in licensed retail operations

2010 ◽  
Vol 16 (2) ◽  
pp. 151-164
Author(s):  
Elizabeth M. Ineson ◽  
Graham J. Stone
Keyword(s):  
Hospitality Industry ◽  
Good Health ◽  
Personal Attributes ◽  
Retail Operations ◽  
Successful Management ◽  
Success Indicators ◽  
Primary Success ◽  
Retail Managers ◽  
Depth Interviews ◽  
Attention To Detail

The research sought to identify key qualities associated with successful licensed retail managers, defined as effective, efficient and profitable operators. Through semi-structured in-depth interviews, managers’ views on success criteria, and problems associated with this type of employment, were elicited. The greatest assets were considered to be personal stability, mobility, good health and support from relatives/family. Physical and mental stamina, well-developed interpersonal skills, anticipation, vigilance and attention to detail were also cited. Prior academic attainment was not considered to be crucial to success; hard biodata from application forms did not allow successful managers to be identified.. The greatest problems in the job centred on people management. Reasons for choosing the job included variety, challenge, the need to be with, enjoyment from talking to, entertaining, pleasing and developing others and delivering a service. Elements of emotional intelligence, including commitment and hardiness, were identified as primary success indicators.

Using the Pack-and-a-Half Rule to Eliminate Backroom Inventories in Retail Operations

2018 ◽  
Vol 39 (3) ◽  
pp. 164-181 ◽  
Author(s):  
Cuneyt Eroglu ◽  
Brent D. Williams ◽  
Matthew A. Waller
Keyword(s):  
Retail Operations
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