The challenge of remanufactured products: the role of returns policy and channel structure to reduce consumers' perceived risk

PurposeWhile remanufactured products represent an increasingly researched phenomenon in the literature, not much is known about consumers' understanding and acceptance of such products. This study explores this issue in the context of the theory of perceived risk (TPR), investigating return policy leniency and distribution channel choice as potential factors to foster remanufactured products' sales.Design/methodology/approachThis research utilizes an experimental design composed of a pre-test and a scenario-based main experiment to explore how return policy leniency might mitigate consumers' perceived risk and how their related purchase intention differs across two types of retail distribution channel structures (i.e. brick-and-mortar vs. online).FindingsThe investigation into the efficacy of return policy leniency within two retail distribution channel settings (i.e. brick-and-mortar vs. online) illustrates that providing a lenient return policy is an effective “cue” in increasing consumer purchase intention for remanufactured products. While prior literature has established that consumers value return policy leniency for new products, the authors provide empirical evidence that this preference also applies to remanufactured products. Notably, that return policy preference holds true in both channel settings (i.e. brick-and-mortar vs. online) under consideration. Additionally, and contrary to the authors’ predictions, consumers perceived remanufactured products sold via both channel settings as equally risky, thus highlighting that both are appropriate distribution channels for remanufactured products. Finally, while research on new products provides some initial guidance on consumer perceptions of quality and risk, the study provides empirical evidence into the difference of perceived risk with regard to new versus remanufactured products.Originality/valueBy employing the TPR, this research explored the role played by two supply chain management related factors (returns policy and channel structure) in reducing consumer's perceived risk and increasing purchase intention. In doing so, this study answers the call for more consumer-based supply chain management research in a controlled experimental research setting.

Discussing Opportunities and Crisis in The Horn of Africa (Hoa)

In this article, an analytical framework is adopted to analyze the socio-political status and economic performance of the Horn of Africa (HOA) region, consisting of Ethiopia, Eritrea, Djibouti, and Somalia. We have identified the essential socio-economic factors, and constraints specific to each country. The efforts on lifting these constraints and future opportunities for growth are discussed. Such a case study approach provides valuable insight to help policymakers create a targeted strategy for development. The study explores the current state of HOA, in terms of the growth in the Horn region, taking into account factors such as poor social returns, policy, restricted access to finance, instability and market failures.

Drivers of Brand Trust in Internet Retailing

This study investigates the attributes that create brand trust in internet retailing through the replication of the work of Ruparelia, White and Hughes (2010) using two different purchase categories: apparels and travel accommodation. Quantitative methodology was employed through survey method involving 180 respondents. There are ten independent variables include website security, website privacy, website brand name, word-of-mouth, website design & navigation, information, returns policy, country of origin, past experience, advertising and testimonials and one dependent variable which is brand trust. Security, privacy, word of mouth, design & navigation, and past experience were proven to have direct linear effects towards web brand trust. On the other hand, brand name, information, returns policy, country of origin and advertising & testimonials have weak relationships with web brand trust. Respondents who purchased clothing apparel were more concerned of the country of origin than respondents who purchased ticket accommodation.

The Impact of Consumer Loss Aversion on Returns Policies and Supply Chain Coordination

Product return is a common after-sale service. Existing literature has assumed loss neutral consumers, while in practice consumers are often more sensitive to utility losses than gains, i.e., customers are often loss averse. In this paper, we study the impact of such loss aversion on the retailer's optimal pricing and returns policies. We analyze three scenarios where the seller offers no refund, full refund and partial refund for the returned products. Under each scenario, the seller determines the optimal price, quantity, and refund amount (under partial refund case) in order to maximize the expected profit. Our results demonstrate that consumer loss aversion leads a no-refund retailer to charge lower price and order smaller quantity, has no impact on a full-refund retailer, and results in a more lenient returns policy for a partial-refund retailer. We also find contracts that coordinate supply chains selling to loss averse consumers. Therefore, this article sheds some lights on how the management of returns policies should be adapted when consumers are loss averse.

Returning and Deporting Irregular Migrants: Not a Solution to the ‘Refugee Crisis’

This article questions whether the presentation of the return and deportation of irregular migrants as a solution to the so-called ‘refugee crisis’ is ethical. Legally, the return of irregular migrants may be a legitimate activity by the state, but the current pressure by the European Commission on member-states to increase the current 40 percent rate of effective returns can lead them to operate returns below minimal human rights standards in a bid to increase the rate. Detailed knowledge of the impact of returns – including deportation from and to different countries – on migrants’ welfare and human rights is scarce. Based on studies on returns from EU member-states to different countries, I make three arguments. First, due to the complexity of the return process, statistics need to be unpacked better. Second, there are key conceptual problems underpinning current EU returns policy. Third, research strongly indicates that returns can render people vulnerable. In the absence of in-depth knowledge on the effects of return on migrants, I conclude with an appeal for returns to be treated with caution and their linking to the refugee crisis to be avoided.