Signaling Quality with Return Insurance: Theory and Empirical Evidence

References

• Altug MS, Aydinliyim T (2016) Counteracting strategic purchase deferrals: The impact of online retailers’ return policy decisions. Manufacturing Service Oper. Management 18(3):376–392.Link, Google Scholar
• Bagwell K, Riordan MH (1991) High and declining prices signal product quality. Amer. Econom. Rev. 81(1):224–239.Google Scholar
• Chakraborty S, Swinney R (2021) Signaling to the crowd: Private quality information and rewards-based crowdfunding. Manufacturing Service Oper. Management 23(1):155–169.Link, Google Scholar
• Che Y-K (1996) Customer return policies for experience goods. J. Indust Econom. 44(1):17–24.Crossref, Google Scholar
• Chen T, Ma K, Zheng C (2018) Does freight insurance really work? effect of freight insurance on consumers’ attitude in online shopping. Int. J. Internet Mark. Advert. 12(3):209–232.Google Scholar
• Cho I-K, Kreps DM (1987) Signaling games and stable equilibria. Quart. J. Econom. 102(2):179–221.Crossref, Google Scholar
• Chu W, Chu W (1994) Signaling quality by selling through a reputable retailer: An example of renting the reputation of another agent. Marketing Sci. 13(2):177–189.Link, Google Scholar
• Davis S, Gerstner E, Hagerty M (1995) Money back guarantees in retailing: Matching products to consumer tastes. J. Retailing 71(1):7–22.Crossref, Google Scholar
• Debo LG, Parlour C, Rajan U (2012a) Signaling quality via queues. Management Sci. 58(5):876–891.Link, Google Scholar
• Ertekin N, Agrawal A (2021) How does a return period policy change affect multichannel retailer profitability? Manufacturing Service Oper. Management. 23(1):210–229.Link, Google Scholar
• Fudenberg D, Tirole J (1991) Perfect bayesian equilibrium and sequential equilibrium. J. Econom. Theory. 53(2):236–260.Crossref, Google Scholar
• Gao F, Su X (2017) Online and offline information for omnichannel retailing. Manufacturing Service Oper. Management 19(1):84–98.Link, Google Scholar
• Geng S, Li W (2017) Complimentary return-freight insurance serves as quality signal or noise? 2017 Australasian Conf. Inform. Systems, 1–10.Google Scholar
• Geng S, Li W, Qu X, Chen L (2017) Design for the pricing strategy of return-freight insurance based on online product reviews. Electron. Commerce Res. Appl. 25:16–28.Crossref, Google Scholar
• Grace MF, Rebello MJ (1993) Financing and the demand for corporate insurance. Geneva Pap. Risk Insur. Theory. 18(2):147–171.Crossref, Google Scholar
• Hwang EH, Nageswaran L, Cho S-H (2020) Value of online-offline return partnership to offline retailers. Working Paper, Available at SSRN 3594993.Google Scholar
• Kirmani A, Rao AR (2000) No pain, no gain: A critical review of the literature on signaling unobservable product quality. J. Marketing 64(2):66–79.Crossref, Google Scholar
• Li LI, Tadelis S, Zhou X (2020a) Buying reputation as a signal of quality: Evidence from an online marketplace. RAND J. Econom. 51(4):965–988.Crossref, Google Scholar
• Li Y, Li G, Cheng TCE (2018) Return freight insurance: Implications for online platforms, third-party retailers and consumers. 8th Internat. Conf. Logistics Informatics Service Sci., 1–6.Google Scholar
• Li Y, Li G, Pan A (2020b) Optimal return shipping insurance policy with consumers’ anticipated regret. Preprint, submitted, https://dx.doi.org/10.2139/ssrn.3912844.Google Scholar
• Lin J, Zhang J, Cheng TCE (2020) Optimal pricing and return policy and the value of freight insurance for a retailer facing heterogeneous consumers with uncertain product values. Int. J. Prod. Econ. 229:107767.Crossref, Google Scholar
• Lutz NA (1989) Warranties as signals under consumer moral hazard. RAND J. Econ. 20(2):239–255.Crossref, Google Scholar
• McWilliams B (2012) Money-back guarantees: Helping the low-quality retailer. Management Sci. 58(8):1521–1524.Link, Google Scholar
• Milgrom P, Roberts J (1986) Price and advertising signals of product quality. J. Political Econom 94(4):796–821.Crossref, Google Scholar
• Moorthy S, Srinivasan K (1995) Signaling quality with a money-back guarantee: The role of transaction costs. Marketing Sci. 14(4):442–466.Link, Google Scholar
• Nageswaran L, Cho S-H, Scheller-Wolf A (2020a) Consumer return policies in omnichannel operations. Management Sci. 66(12):5558–5575.Link, Google Scholar
• Nageswaran L, Hwang EH, Cho S-H (2020b). Offline returns for online retailers via partnership. Working Paper, Available at SSRN 3635026.Google Scholar
• Najafi S, Duenyas I (2018) Price markdowns to induce customers to opt out of free returns. Working Paper, Available at SSRN 3401300.Google Scholar
• Ofek E, Katona Z, Sarvary M (2011) “Bricks and clicks”: The impact of product returns on the strategies of multichannel retailers. Marketing Sci. 30(1):42–60.Link, Google Scholar
• Samatli G, Shen W, Hu X (2018) The impact of consumer loss aversion on returns policies and supply chain coordination. Internat. J. Oper. Res. Inform. Syst. 9(4):1–20.Crossref, Google Scholar
• Seog SH (2006) The strategic role of insurance: The warranty case. J. Insur. Issues. 29(1):33–50.Google Scholar
• Shang G, Pekgün P, Ferguson M, Galbreth M (2017) How much do online consumers really value free product returns? evidence from ebay. J. Oper. Management 53:45–62.Crossref, Google Scholar
• Shao B, Chang L, Zhang L (2013). The effect of online return shipping insurance and regulatory focus on consumer behavior. Proc. 23rd Internat. Business Res. Conf., 18–20.Google Scholar
• Shulman JD, Coughlan AT, Savaskan RC (2011) Managing consumer returns in a competitive environment. Management Sci. 57(2):347–362.Link, Google Scholar
• Spence M (1973) Job market signaling. Quart. J. Econom. 87(3):355–374.Crossref, Google Scholar
• Stock A, Balachander S (2005) The making of a “hot product”: A signaling explanation of marketers’ scarcity strategy. Management Sci. 51(8):1181–1192.Link, Google Scholar
• Su X (2009) Consumer returns policies and supply chain performance. Manufacturing Service Oper. Management 11(4):595–612.Link, Google Scholar
• Thakor AV (1982) An exploration of competitive signalling equilibria with “third party” information production: The case of debt insurance. J. Finance 37(3):717–739.Google Scholar
• Wernerfelt B (1988) Umbrella branding as a signal of new product quality: An example of signalling by posting a bond. RAND J. Econom. 19(3):458–466.Crossref, Google Scholar
• Yu M, Ahn H-S, Kapuscinski R (2015) Rationing capacity in advance selling to signal quality. Management Sci. 61(3):560–577.Link, Google Scholar