An Investigation into Critical Service Determinants of Product Returns in Retail Firms

Product returns are service activities and it is critical for organisations to consider returns strategically and develop customer oriented returns management systems. With the aim of extending the returns management literature, our research objective is to identify and prioritize critical determinants for product returns services in the Australian retail industry. We conducted 11 face-to-face interviews of senior executives of retail organisations and identified the critical determinants of product returns service through multi-criteria decision-making approach. Results indicate that the most important service dimensions are associated with the outcome of service recovery, and the manner in which service failures are handled. The top four critical product returns service determinants are (i) communication support service for customer, (ii) money-back for any type of return, (iii) customer support access and (iv) user-friendly interaction. The findings of the study can act as a reference guide to senior executives developing strategies for competitive advantage through product returns viz. customer retention.