Mohammed Nadeem, National University, San Jose, USA

Product returns are inevitable but by no means evil (Petersen and Kumar, 2009). Retail myopia is evident with de-shopping behavior with consequences for retailers in time, effort and costs (King et al, 2008). Regret persists with the consumers because finding a lower price results in perception of trust violation (Dutta et al, 2011). Consumers exploit retailers liberal return policies when fraudulently returning products that they know they have used or broken (Harris, 2010). Retailer- customized coupon campaigns have a positive exposure and redemption effect on customer purchases (Venkatesan and Farris, 2012). Satisfaction predicts and drives key consumer behaviors, among them repeat purchases and word-of-mouth advocacy (Nadeem, 2007). The price paid for service experience has direct and negative effect on return intentions (Noone and Mount, 2008). Past studies has neither adequately explored product return intentions nor have they fully evaluated the role of return policy. The current study explore why consumers return products and their intentions and the role of retailers return policies. In this qualitative content analysis study the following three research questions are explored: 1. Does price has any impact on the post-purchase product return intentions? Does cognitive dissonance after purchase lead consumers to develop product return intentions? 3. Does satisfaction effects product return intentions? This study aims to make three important contributions: First, the relationship between cognitive dissonance and product returns; Second consumers’ psychological reasons in forming product return intention and retail practice. Third, the connection between cognitive dissonance after purchase and product return intentions and return policy situations. The findings of the study demonstrate that cognitive dissonance after purchase positively influences consumers’ product return intentions. The study recommends retailers minimize dissonance by creating an effective centralized return policy system that can weaken consumers’ product return intentions and help firms manage price and satisfaction levels as customers return products.

Keywords: Customer returns, product returns, return intentions, customer satisfaction, customer’ loyalty

Suggested citation: Nadeem, M. (2011) Returning Customer: Was that a planned purchase. Skyline Business Journal, Volume 7, Issue 1, pp 11-17.

Nadeem, M. (2011) Returning Customer: Was that a planned purchase. Skyline Business Journal, Volume 7, Issue 1, pp 11-17.