The firm-customer exchange process
consists of three parts: (1) firm-initiated marketing communications,
(2) customer buying behavior and (3) customer product return behavior.
Much of the research in marketing has focused on the relationship
between firm-initiated marketing communications and customer buying
behavior. The relationship between customer product return behavior
and both of the other two parts of the firm-customer exchange
process have been vastly ignored. The impact of customer product
return behavior on the other two parts of the customer firm-customer
exchange process is not clear up to this point due to a lack of
data availability and a lack of understanding of the role customer
product return behavior plays in the firm-customer exchange process.
We help to explain this relationship by using data from a B-to-C
retail firm that empirically demonstrates the role of product
returns in the firm-customer exchange process. In addition, we
conducted an empirical application that leverages the knowledge
about the role of customer product return behavior from our first
study. We do this by integrating customer product return behavior
into a customer value framework to help measure and maximize customer
lifetime value.
The end result is a clearer understanding of what customer and
firm behaviors are the antecedents and consequences of customer
product return behavior. In addition, we are able to help businesses
integrate this knowledge into their measurement of customer value
and in turn help firms generate optimal strategies that maximize
profitability taking all three firm-customer exchange process
factors.
Printer Friendly Page
