Return Policy: How Endowment Effect Improve the Effectiveness of Return Policy

DOI

10.2991/978-94-6463-036-7_45How to use a DOI?

Keywords

return policy; psychological ownership; affective reaction; endowment effect; time leniency; monetary leniency; effort leniency

Abstract

The influence of return policies on consumers’ behaviour is significant when determining the success of the guidelines. Lenient return policies ensure consumers’ rights after purchase behaviour, so they may be more enthusiastic about repurchasing or choosing not to return. The behavioural economic theory, the endowment effect, suggests that consumers may find themselves less determined to make the return decision as time goes by. This is because people are more likely to give the objects they own a higher value. This reviewed article investigated how the endowment effect triggered by return policies manipulates consumers’ behaviours and how the strength of the endowment effect is changing due to influence from three dimensions (time, financial refunds, effort). Implications from the analysis can give potential to businesses when making return policies. The key purpose of structuring suitable return policies is to raise aggregate consumption by adopting lenient return policies in different dimensions.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Xi Chen
PY  - 2022
DA  - 2022/12/31
TI  - Return Policy: How Endowment Effect Improve the Effectiveness of Return Policy
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 301
EP  - 306
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_45
DO  - 10.2991/978-94-6463-036-7_45
ID  - Chen2022
ER  -