ABS International Strategy & Marketing Research Seminar: Sonja Gensler & Thorsten Wiesel (University of Müster)

"To Keep or Not to Keep: Effects of Customer-Generated Content on Product Returns"

Evenement

Product returns are a severe problem for Internet retailers. Because customer-generated content (CGC) often contains complementary product information, it may affect customer return decisions. Though numerous studies have been conducted on CGC effects on purchases, academics and practitioners have very limited knowledge about whether and how CGC influences product return decisions. This article examines if CGC available at the moment of purchase influences not only the purchase decision but also the subsequent return decision. In addition, we examine the interplay between purchases, returns and successive CGC. The relations are examined for two forms of CGC (reviews and Q&A) in two product categories (electronics and furniture) with a rich database of product page views and transactions from a major online retailer. The results show that higher review valence at the moment of purchase induces more purchases but also more returns; returns then result in fewer additional reviews and reduce expected star ratings in new reviews. A simulation further indicates that overly positive reviews can hinder a firm’s financial performance, due to the large costs associated with product returns.

Please register: secbs-abs@uva.nl 

Gepubliceerd door  ABS