Emotional Factors

D1
Trust

The spatial separation of supply and demand in the run-up to the purchase and the conclusion of the contractual agreement subliminally create uncertainty upon the buyer’s side. Because the customers cannot check the quality and the functionality of the goods in advance, they must rely on the information presented and the promised benefits offered by the providers.

Pros
  • PRO
  • The knowledge and fulfilment of the customers’ requirements increases the trust, strengthens the brand and reduces the return rate.

  • Good will return options and fast processing increase the trust in the provider and the brand.

  • The payment method of purchasing on account creates particularly high trust upon the buyer’s side.

  • Good will take-back rules on web sites that are designed in a professional and appealing manner alleviate the uncertainty upon the side of prospective buyers and increase the inclination to make an order.

  • Money-back guarantees are considered to be insurance.*

* Return Management in the Mail Order Business, Asdecker, 2014
Cons
  • CONTRA
  • Errors made during the transaction processing increase the uncertainty and reduce the trust in the seller.

  • Uncertainty regarding the quality and functionality of the goods increases the likelihood that the goods will be returned.

D2
Convenience

Customer loyalty is created increasingly via a perfect customer service and less and less via the mere brand. The take-back conditions offered by the providers are playing a more and more important role for online customers and decide whether the customer remains and buys or switches via a simple mouse click to the next provider with better service.

Pros
  • PRO
  • Transparent information regarding the purchasing and return modalities lower the return rate.

  • Customers prefer it if the return slip is enclosed with the package rather then getting in touch with customer service to process a return.

  • Customers prefer free-of-charge returns.

  • A return via the channel of the customer’s choice – online, via pick-up, on-site at the shop – increase the convenience.

  • An online return registration enables the processing in real-time. This speeds up the take-back, exchange, new purchase or subsequent purchase. The information regarding the return is there before the package and enables the pro-active supporting of the customer.

  • If the online return registration is made, the customer provides the reason for the return. This enables targeted evaluations and optimizations.

Cons
  • CONTRA
  • A lack of convenience results in dissatisfied customers and bad ratings.

  • Return forms that must be filled out are regarded by the customers as being an annoyance.

  • A lack of convenience lengthens the processing timeframe and increases the costs.

  • Ignoring customer preferences is equated with bad service by the buyer.

D3
Transparency

The spatial separation of supply and demand in the run-up to the purchase and the conclusion of the contractual agreement subliminally create uncertainty upon the buyer’s side. Because the customers cannot check the quality and the functionality of the goods in advance, they must rely on the information presented and the promised benefits offered by the providers.

Pros
  • PRO
  • Transparency with regards to product features as well as payment, delivery and return terms and conditions promote the willingness to buy.

  • Transparent information regarding the purchasing and return modalities lower the return rate.

Cons
  • CONTRA
  • A lack of clarity regarding the return terms and conditions and return procedures has a negative effect on the willingness to buy and the return rate.

D4
Loyalty

E-commerce has completely transformed the definition of customer loyalty and/or loyalty. Customers are feeling less and less loyalty to brands and their promises because they have access to all competitors, quickly and conveniently.

Pros
  • PRO
  • Customer-oriented service increases the loyalty.

  • Convenience in the purchasing, payment and return processes strengthens customer loyalty.

  • Positive customer experiences improve the satisfaction and increase the long-term customer value.

  • The loyalty increases if the return is attributable to a change in the purchasing intention and not to quality defects.

Cons
  • CONTRA
  • Preventing returns without compensation results in dissatisfaction and less loyalty. Examples: Return fees, hindrances, inconvenient payment methods