Navigating the Unknown: How Ambiguity Aversion Shapes Consumer Responses to Return Policies.

• In Event: LOGISTICS and TRANSPORTATION MANAGEMENT: Advances in consumer-centric supply chain management

Abstract

Bracketing, or buying more than necessary with the intention to return unwanted merchandise, drives return volumes which are of great concern to retailers. While some retailers choose to add restrictions to their return policies to help curb the problem, others adopt vague and ambiguous return policies. On one hand, ambiguous return policies may allow for a wide range of operational responses to returns to help curb unwanted behaviors, such as bracketing. On the other hand, they may contribute to lower purchase intentions. We conduct series of vignette experiments to examine how return policy ambiguity and complexity shape bracketing behavior.

Authors

• Nadja Vorontsova, University of Tennessee Knoxville

• Haley Paluzzi, Colorado State University

• Benedetta Baldi, University of Verona