When to introduce an online channel, and offer money back guarantees and personalized pricing?

• Published in: European journal of operational research Vol. 257; no. 2; pp. 614 - 624
• Main Authors: Chen, Bintong, Chen, Jing
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.03.2017; Elsevier Sequoia S.A
• Subjects: Customer returns policy; Dual-channel; Electronic commerce; Guarantees; Personalized pricing; Product returns; Salvage value; Studies; Uniform pricing; Uniform pricing; Dual-channel; Customer returns policy; Personalized pricing

•A dual-channel in which the online channel faces a high customer returns.•We identify conditions a retail/an online channel, or a dual-channel structure should be chosen.•A simple three-step process to make decisions on channel selection, returns policy, and price.•Implementing PP makes the online...