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Online purchase return policy leniency and purchase decision : Mediating role of consumer trust

Oghazi, Pejvak; Karlsson, Stefan LU ; Hellström, Daniel LU and Hjort, Klas LU (2018) In Journal of Retailing and Consumer Services 41. p.190-200
Abstract

Recasting prior work on return-policy and purchase intentions literature, through the lens of signaling theory and relational signaling theory, we posit that returns policy, as a market signaling mechanism, is a costly investment that online retailers make to not only support current transaction but also to signal commitment towards customer service. What outcome would such costly signal result into? Based on relational signaling theory, it promotes trust, that in turn, could enhance purchase intentions. With empirical data from 730 online consumers of fast-moving consumer goods in Sweden, the study finds that, after controlling for shoppers’ age, education, income, gender, and frequency of online purchases, perceived consumer trust... (More)

Recasting prior work on return-policy and purchase intentions literature, through the lens of signaling theory and relational signaling theory, we posit that returns policy, as a market signaling mechanism, is a costly investment that online retailers make to not only support current transaction but also to signal commitment towards customer service. What outcome would such costly signal result into? Based on relational signaling theory, it promotes trust, that in turn, could enhance purchase intentions. With empirical data from 730 online consumers of fast-moving consumer goods in Sweden, the study finds that, after controlling for shoppers’ age, education, income, gender, and frequency of online purchases, perceived consumer trust fully mediates the effect of perceived return policy leniency on purchase intention. Building on past research, we apply a different theoretical lens that connects costly signaling that drives relational signaling to foster customer trust to improve purchase intentions.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Consumer trust, Online shopping, Purchase intentions, Retail, Return policy leniency
in
Journal of Retailing and Consumer Services
volume
41
pages
11 pages
publisher
Elsevier
external identifiers
  • scopus:85039797260
ISSN
0969-6989
DOI
language
English
LU publication?
yes
id
6824f20b-b1b3-42ab-88a1-8ef160142778
date added to LUP
2018-01-09 09:19:06
date last changed
2018-05-29 11:50:20
@article{6824f20b-b1b3-42ab-88a1-8ef160142778,
  abstract     = {<p>Recasting prior work on return-policy and purchase intentions literature, through the lens of signaling theory and relational signaling theory, we posit that returns policy, as a market signaling mechanism, is a costly investment that online retailers make to not only support current transaction but also to signal commitment towards customer service. What outcome would such costly signal result into? Based on relational signaling theory, it promotes trust, that in turn, could enhance purchase intentions. With empirical data from 730 online consumers of fast-moving consumer goods in Sweden, the study finds that, after controlling for shoppers’ age, education, income, gender, and frequency of online purchases, perceived consumer trust fully mediates the effect of perceived return policy leniency on purchase intention. Building on past research, we apply a different theoretical lens that connects costly signaling that drives relational signaling to foster customer trust to improve purchase intentions.</p>},
  author       = {Oghazi, Pejvak and Karlsson, Stefan and Hellström, Daniel and Hjort, Klas},
  issn         = {0969-6989},
  keyword      = {Consumer trust,Online shopping,Purchase intentions,Retail,Return policy leniency},
  language     = {eng},
  month        = {03},
  pages        = {190--200},
  publisher    = {Elsevier},
  series       = {Journal of Retailing and Consumer Services},
  title        = {Online purchase return policy leniency and purchase decision : Mediating role of consumer trust},
  url          = {http://dx.doi.org/},
  volume       = {41},
  year         = {2018},
}