8/9/2019 Reduce Product Returns

1/3

American Marketing Association / Summer 2013 227

REDUCING PRODUCT RETURNS IN ONLINE RETAILING: DO

THREAT AND NORMATIVE APPEALS REALLY WORK?

Ina Garnefeld, University of Wuppertal, Germany

Eva Mnkhoff, University of Paderborn, Germany

Karen Raum, University of Wuppertal, Germany

SUMMARY

Product returns are a problem for many online retail-

ers. Return rates at online retailers are high with up to 40

percent in the apparel industry (Hurst 2012). As they

cause high shipping, process and reverse logistic costs,

product returns are expensive for retailers. Consequently,

online retailers attempt to decrease product returns by

adopting various product management strategies. For

example, online retailers provide more information about

their merchandise, apply stricter return policies, or indi-

vidually contact customers with high return rates trying to

convince them to return less in the future.

A recent practice is the usage of messages with threat

or normative appeals posted on the retailers webpage

aiming at reducing customers return behavior. While a

threat appeal is a message that highlights negative conse-

quences of a certain behavior to oneself, normative ap-

peals stress what others think should be done (White

and Simpson 2013; White and Peloza 2009). It is impor-

tant for online retailers to know whether they can success-

fully use appeals to reduce returns. As past research has

neglected this issue of appeals for managing returns, our

paper aims to shed light on the consequences of threat and

normative appeals aiming at reducing customers returnbehavior.

In our paper, we consider two effects of normative

and threat appeals. First, we look at the effect on custom-

ers return behavior. Relying on past literature on appeals

in different contexts, it is not at all clear how messages

using threat or normative appeals will influence custom-

ers return behavior. Based on reactance theory (Brehm

1972), one can assume for example that people who feel

their freedom of choice restricted by a threat appeal will

not reduce an unwanted behavior but even increase it. In

contrast, normative appeals have been found to reduce

unwanted behavior as they educate people about what isthe right thing to do (Reich and Robertson 1979). Second,

we analyze the effect on customers repurchase intention.

Returns cannot only be regarded as a necessary evil

(Peterson and Kumar 2009) but can also be beneficial for

retailers. According to Petersen and Kumar (2009), up to

a certain threshold customers product return behavior

positively influences their repurchase intentions. Conse-

quently, it is necessary to evaluate the consequences of

threat and normative appeals on customers return andrepurchase intentions to more comprehensively analyze

the effectiveness of appeals.

We draw on reactance theory and past research on

appeals to develop our hypotheses. According to reac-

tance theory (Brehm 1966; Brehm 1972), we expect threat

appeals to have a negative impact on customers return

intentions. These appeals can cause reactance as they

restrict customers freedom of choice by announcing

negative consequences in case of returns. Hence, custom-

ers will not comply with the appeal but even act against it

and become more likely to return. Furthermore, if custom-

ers return their purchased products despite the threat

appeal, they will feel uncomfortable when returning. As

the return process becomes less easy and more stressful

customers will be less likely to repurchase at that retailer.

On the contrary, normative appeals can lead to com-

pliance with a persuasion attempt (Reich and Robertson

1979). A normative appeal educates people in how far a

certain behavior leads to negative outcomes for society.

Hence, a normative appeal will be effective in reducing

return rates. Nevertheless, normative appeals can de-

crease customers repurchase behavior. Because of the

appeal people feel uncomfortable with returning productsand therefore might perceive a higher risk of ordering in

the future. As higher perceived risk reduces purchase

likelihood, a normative appeal will have a negative effect

on repurchase intentions.

To investigate the effects of different appeals on

customers return and repurchase behavior, we conducted

an experimental study. We used a uni factorial design and

manipulated appeals on three levels (no vs. threat vs.

normative appeal). For data collection we randomly con-

tacted and directed respondents to a webpage with the

questionnaire. A total of 293 participants took part in the

experiment, randomly assigned to one of the three groups.The mean age of the sample was 35 years and 57.3% were

female.

Relying on a scenario approach, participants from all

three groups were asked to imagine that they had ordered

a sweater at a fictitious online retailer. The sweater was

delivered without any problems, but the color was slightly

different from expected. Subsequently, participants were

8/9/2019 Reduce Product Returns

2/3

228 American Marketing Association / Summer 2013

asked to imagine that they were considering returning the

sweater. Visiting the webpage of the online retailer, par-

ticipants were confronted with a message with either no

appeal, a threat appeal or a normative appeal. Both ap-

peals aimed at reducing product returns.

According to our results and in contrast to what

online retailers seem to expect, threat and normative

appeals both increase customers product return intention

and decrease repurchase intentions. Thus, appeals do not

only cause additional product returns but also inhibit

possible beneficial effects of product returns in terms of

higher repurchase intentions. As a consequence, manag-

ers should be careful when using these kinds of appeals on

their webpages. Rather than posting messages with ap-

peals on their webpages, firms should use other marketing

practices to reduce product returns. References are avail-

able upon request.

For further information contact:

Karen Raum

Schumpeter School of Business and Economics

University of Wuppertal

Gaussstr. 2042119 Wuppertal

Germany

Phone: +49(0)202.439.2772

Fax: +49(0)202.439.2471

E-Mail: raum@wiwi.uni-wuppertal.de

8/9/2019 Reduce Product Returns

3/3

C o p y r i g h t o f A M A S u m m e r E d u c a t o r s ' C o n f e r e n c e P r o c e e d i n g s i s t h e p r o p e r t y o f A m e r i c a n

M a r k e t i n g A s s o c i a t i o n a n d i t s c o n t e n t m a y n o t b e c o p i e d o r e m a i l e d t o m u l t i p l e s i t e s o r

p o s t e d t o a l i s t s e r v w i t h o u t t h e c o p y r i g h t h o l d e r ' s e x p r e s s w r i t t e n p e r m i s s i o n . H o w e v e r , u s e r s

m a y p r i n t , d o w n l o a d , o r e m a i l a r t i c l e s f o r i n d i v i d u a l u s e .