An investigation into critical service determinants of customer to business (C2B) type product returns in retail firms

Abstract

Purpose – In spite of regular occurrence of product returns, research into determinants of returns services in retail businesses is still limited. To fill the gap, the purpose of this paper is to investigate critical determinants of customer to business type product returns services in the retail industry. Design/methodology/approach – The authors develop a framework of product returns services that consists of three major service categories and 16 returns service determinants. The criticality of the determinants of product returns management are assessed employing the analytic hierarchy process (AHP) based multi-criteria decision-making approach. Under AHP set up the authors interview retail operations managers of major retail firms in Australia to identify critical determinants of product returns services. Findings – Results indicate that the most important returns services dimensions are the way in which returns services are handled through interaction, and the outcome of service delivery. The top five critical service determinants of product returns are related to: communication support service for customer, money back for any type of returns, customer support access, user-friendly interaction, and product replacement. Originality/value – The findings of the study can be considered by senior managers of retail firms as a reference guide for designing efficient and effective returns service systems and developing strategies for competitive advantage through product returns, namely, customer retention.