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Author:Hess, J. D.
Chu, W.
Gerstner, E.
Title:Controlling product returns in direct marketing
Journal:Marketing Letters
1996 : OCT, VOL. 7:4, p. 307-317
Index terms:DIRECT SELLING
PRODUCTS
CONTROL
CONSUMER CHOICE
Language:eng
Abstract:Direct marketers may offer price refunds to unsatisfied consumers but as a result some consumers order products with no intention of keeping them. Such inappropriate returns can be controlled in a profitable way by imposing nonrefundable charges and that these charges increase with the value of the merchandise ordered. Data collected from clothing mail-order catalogs is consistent with the theory. The shipping and handling catalogs are usually nonrefundable and increase with the value of the merchandise ordered, even when the actual shipping and handling costs are constant.
SCIMA record nr: 160079
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