The leniency of return policy and consumers’ repurchase intention in online retailing

The purpose of this paper is to investigate the relationship between the repurchase intention of a customer and his/her perception of various aspects of an e-tailer’s product return process, such as leniency, fairness and quality of the return process.

This research focuses on these aspects through the expectation disconfirmation theoretical lens, looking at the relationship between expectations shaped by the product return policy and the repurchase intention. This research collects data using a survey approach and analyzes it using structural equation modeling.

It was found that perceived return policy leniency, perceived fairness of the return experience and perceived quality of the return experience are important and supporting factors that influence a customer’s intention to be a return customer to e-tailers. Perceived leniency was found to not only be the most influential factor for return purchase intention but it also significantly impacted the perceived fairness and the quality of the return process. As a result, perceived leniency of the return policy had a “halo” effect on the other factors.

This suggests that the majority of an e-tailer’s effort should be expended determining a return policy and experience that is widely perceived as lenient as this will overall improve customer perception of the return process and increase repurchase intention.

This research extends research on lenient policy within the growing e-tailer sector by examining the return experience of the customer and subsequent repurchase intention based on multiple factors.