Advanced Search

Query:

Fill in the form and click »Search«...

Format:

Display: entries per page entries

Zbl 1067.90107
Yalabik, Baris; Petruzzi, Nicholas C.; Chhajed, Dilip
An integrated product returns model with logistics and marketing coordination. (English)
[J] Eur. J. Oper. Res. 161, No. 1, 162-182 (2005). ISSN 0377-2217

Summary: We develop an integrated approach for analyzing logistics and marketing decisions within the context of designing an optimal returns system for a retailer servicing two distinct market segments. At the operational level, we show that the optimal refund price is not unique. Moreover, it is such that if both market segments return a purchased product, then neither segment will receive a full money-back refund; and it is such that if one or both segments do not return a purchased product, then a refund premium over the purchase price is possible, but the refund premium will not be enough to offset a customer's total net cost of purchase and return. We also show that any improvement to the returns system that results in increased logistical efficiency or marketing effectiveness will be accompanied by an increase in the selling price of the product. At the strategic level, we show that if the retailer does not coordinate its logistics and marketing efforts to improve the overall returns system, then it will tend to over-invest in one of the functions and under-invest in the other. Finally, we illustrate how our model can be generalized to the case in which a customer's ex post valuation of the product falls along a continuum.

MSC 2000:: *90B60 Marketing, advertising
90B30 Production models

Keywords: Retailing; Product returns; Operations/marketing interface; Money-back guarantees

Comment on this Item PDF MathML XML ASCII DVI PS BibTeX Online Ordering Article Journal

	Scientific prize winners of the ICM 2010
	Overhang
	Lie groups, physics and geometry. An introduction for physicists, engineers and chemists.

Advanced Search

Zentralblatt MATH Berlin [Germany]