Customer Return Policies for Experience Goods: The Impact of Product Price and Consumer Search Costs on Seller-Provided Informational Cues
Document Type
Article
Publication Date
3-1-1999
Department
Marketing and Fashion Merchandising
Abstract
The present article provides an extension of previous theoretical arguments regarding customer return policies for experience goods. Legit regressions presented here suggest the importance of the 'full cost' to consumers of a purchase mistake, as proxied by experience goods prices and the time costs to consumers associated with search, in the seller's decision to produce information in advertisements regarding return policies. The evidence points out that sellers do respond in their decisions to produce information in a manner that reduces the total cost of voluntary exchange and maximizes seller profits.
Publication Title
Applied Economics
Volume
31
Issue
3
First Page
331
Last Page
336
Recommended Citation
Mixon, F. G.
(1999). Customer Return Policies for Experience Goods: The Impact of Product Price and Consumer Search Costs on Seller-Provided Informational Cues. Applied Economics, 31(3), 331-336.
Available at: https://aquila.usm.edu/fac_pubs/4589