The Impact of Return Freight Insurance on Retailer’s Choice of Refund Guarantee in the Presence of Private Brand

DOI

10.2991/aebmr.k.220405.345How to use a DOI?

Keywords

brand; Money-back guarantee; Pricing strategy

Abstract

Based on the introduction of private brands by retailers, this paper studies the effect of return compensation on retailer’s optimal pricing. The results show that: (1) consumer return cost is lower than retailer return cost: low return compensation makes retailers give up providing refund guarantee for their own brands. Generally, compensation for returned goods shall be determined according to the specific situation of returned goods cost of each member of the supply chain. When return compensation is large, the retailer should choose to provide return compensation only for its own brand. (2) Consumer return cost is higher than retailer return cost: when the return cost is smaller or larger, retailer provides refund guarantee for its own brand. When return compensation is common and consumer return costs are low, retailers offering return compensation for private brands can have a negative impact.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

Download article (PDF)

TY  - CONF
AU  - Taofeng YE
AU  - Xiuyuan PEI
PY  - 2022
DA  - 2022/04/29
TI  - The Impact of Return Freight Insurance on Retailer’s Choice of Refund Guarantee in the Presence of Private Brand
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 2057
EP  - 2063
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.345
DO  - 10.2991/aebmr.k.220405.345
ID  - YE2022
ER  -