Reduction of the product return rate in e-commerce : the use of nudges

Details

Supervisors

Hazée, Simon

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

Online retailers are often faced with the problem of product returns. As well as being an environmental problem, these returns are very costly for companies, as most of them offer free returns. These lenient returns policies are increasingly being called into question, but there is no scientific consensus to prove the effectiveness of a stricter returns policy. Nudges could be a way of reducing the return rate without affecting the return policy. In this work, we test the use of two nudges whose messages are based on ecological incentives for this purpose. The first, an information nudge, proved effective in reducing the intention to return the product by 14%, while the second, a social norm nudge, was less effective, reducing return intention by 6%. We also found that these nudge are more effective with consumers with high environmental sensitivity and that perceived personal responsibility for sustainable consumption did not appear to be a mediating variable in the effectiveness of these nudges.