Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure

Pricing policies in a dual-channel supply chain with retail services

“…Huang and Swaminathan (2009) and Khouja et al (2010) study the optimal pricing strategy when a retailer sells its product though two channels, the Internet and the traditional channel. Chen and Bell (2012) examine how a firm that faces customer returns can enhance profit by using different customer returns policies, full-refund and no-returns, as a device to segment its market into a dual-channel structure. Hua et al (2010) show that the difference between the demand transfer ratios in the two channels with respect to lead time and direct sale price, and customer acceptance of the direct channel have great effects on the lead time and pricing decisions.…”

Pricing policies for a dual-channel retailer with cross-channel returns

“…A large body of work on customer returns has examined a refund policy that is exogenously determined as a full refund or a Money Back Guarantee (MBG) (Chang and Yeh 2013;Chen and Bell 2013;Choi et al 2013;Akcay, Boyaci and Zhang 2013;Wang, Tung and Lee 2010;You, Ikuta and Hsieh 2010;Vlachos and Dekker 2003). Other papers have compared a system's performance with no refund policy to a system's performance with a full refund policy (Chen and Grewal 2013;Choi et al 2013;Chen and Bell 2012;Chen and Zhang 2011).…”

A Literature Review on Supply Chain Contracts Selection and Coordination under Competing Multi Manufacturers

“…Forman et al (2009) had carried on the empirical analysis by using Amazon.com, illustrated the importance of the transportation cost of buying online, and proved that the transport cost or travel cost really seriously affect consumers' purchase decision. Chen and Bell (2012) introduced return mechanism into buyback contract, by building a model analysis of full return and no-full return of the two kinds of situations of their respective optimal ordering strategy. Vairaktarakis (2013) studied non-cooperative mode between manufacturers of subcontracting strategy, illuminated non-cooperative model easy to produce the double marginal effect, non-cooperative game model was constructed and subcontract strategies of the non-cooperative model were obtained.…”