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The Manipulation of Merchandise Returns: A Strategic 
Approach in the Furniture Industry 
 

Kari-Jo Koshes, DBA | JMX Brands, Sarasota, FL 

Contact: kjkoshes@aol.com 

Abstract 
Abstract 

Customer merchandise return rates represent a high cost to organizations, with product return rates 
exceeding 50% of sales and representing over $351 billion annually. The author studied the strategies 
used by online retail furniture companies to reduce customer merchandise return rates and utilized a 
qualitative case study to explore the organism’s response to an environmental stimulus based on the 
social cognitive theory. The study presented the influence of the consumer’s emotional state on 
perceived risk and the relationship with the post-purchase cognitive dissonance phenomenology by 
collecting data from six employees of a Sarasota, Florida, online retail furniture company and using a 
structured interview. The author recorded, translated, coded the data, and used the interview responses to 
uncover the top emerging strategic approaches that reduce product return rates, which include 
understanding customer needs, policy and procedure, and product accuracy and clarity. The study 
identified several implications from the findings, including improved customer relationships that 
emphasize customer satisfaction, greater social change that highlights a customer-centric organization 
approach, and enhanced organizational success that influences a firm’s financial health. 

Keywords: Merchandise Return Rates, Social Cognitive Theory, Post-Purchase Cognitive Dissonance, 
Qualitative Case Study 

  



 

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June 2022 | Volume 1, Number 2 

Introduction 
The prevalence of customer product returns in the United States is staggering. Rintamaki et al. (2021) 
found that customer merchandise returns represent over $351 billion a year, with returned products 
exceeding 50% of online sales (Hjort et al., 2019). Evaluating the effectiveness of manipulating 
customer product returns provides insight into the relationship between a customer and a business. 

The author completed the study by conducting a structured interview with online retail furniture 
employees in Sarasota, Florida, who work in the customer experience field. The study used a qualitative 
case study to answer the research question, What strategies do online retail furniture companies use to 
reduce customer merchandise return rates? The author expanded on prior research on the rate of 
customer merchandise returns by evaluating an online furniture retailer’s ability to decrease customer 
product returns. 

Review of the Literature 
Organizations are motivated to examine why consumers return products because of the high percentage 
of consumers concerned about the risk. Lin et al. (2020) determined that analyses on product return 
motivation could help organizations understand shopping behavior and increase sales. The authors 
generalized the indicators that influence customer return behavior as extrinsic and intrinsic motivators 
that stem from cognitive, social, biological, and emotional cues. Customers motivated by extrinsic 
factors seek outcomes or results to stimulate decision-making, and customers motivated by intrinsic 
factors seek self-fulfillment or mastery to stimulate decision-making. The authors produced three 
categories to classify customer merchandise return intention: perceived behavior control, attitude, and 
subjective norm. 

Organizations experience product returns for many reasons, including unrealistic product expectations, 
poor product quality, wrong product, and delivery issues. Researchers discovered that unrealistic 
product expectations generate merchandise returns because of misalignments of the actual product and 
the anticipated product, causing frustration and disappointment (Brison et al., 2020). The authors 
determined that poor product quality causes product returns because the merchandise does not meet the 
customer’s performance standards and does not meet the product norms promoted by the company 
(Sikora, 2021). Researchers revealed that wrong product purchases motivate product returns because 
customers receive a product they did not order and do not want or need (Abdollahi et al., 2020). The 
authors ascertained that delivery issues stimulate merchandise returns because the product arrives in an 
unacceptable condition or the customer encounters scheduling issues (Lok et al., 2019). The literature 
review topics included unrealistic product expectations, poor product quality, wrong product, and 
delivery issues. The literature subtopics included why the topic influences product returns, options to 



 

 

 

31 Business Management Research & Applications: A Cross-Disciplinary Journal 

reduce the influence on product returns, a weakness of the current research, and a strength of the current 
research.  

Unrealistic Product Expectations 

A customer’s expectations of a product shape the consumer’s decision to return an online purchase. 
Nitsche and Gerlach (2020) described unrealistic expectations as an overestimation caused by 
information asymmetries, which negatively influence organizational acceptance. Customers rely on 
implied and expressed messages to guide purchasing behavior, and when the product does not match the 
description, the result is a dissatisfied customer. Nitsche and Gerlach determined that unrealistic product 
expectations occur because of intentional or unintentional organizational practices (Brison et al., 2020). 
Firms that design intentional organizational practices to produce unrealistic product expectations create 
an environment of deception. Deceptive practices occur when a retailer uses ambiguous messaging, 
misleading terminology, and insufficient information to convince customers of an untruth. An 
organization that utilizes deceptive practices violates ethical standards and misleads consumers (Bozkurt 
& Gligor, 2019). The customer reacts to the dissatisfaction by reestablishing equilibrium, resulting in a 
merchandise return (Russo et al., 2019).  

Poor Product Quality 

A customer’s assessment of product quality shapes the decision to return an online purchase. Lin et al. 
(2020) cited the International Standards of Organizations, which stated that a product’s quality describes 
the generic characteristics of an item and the acceptance of a customer of the characteristics. Daroch et 
al. (2021) stated that product quality remains the primary worry of online customers. Researchers 
discovered that product quality ranks as one of the most significant factors influencing product returns, 
with online shoppers affected more because of a lack of physical contact with the product before 
purchase. Several causes of product quality issues include decay, damage, and defects, which lead to 
increased product return rates because of a deviation of expected merchandise quality. Organizations 
experience decay issues because of increased production time and delays in manufacturing and 
distribution to the end-user (Cankaya, 2020). Firms face damages because of improper handling and 
inefficient communication between the supplier and the purchaser (Sikora, 2021). Businesses endure 
defects because of improper staff training and machine errors that cause flaws in the production cycle 
(Vo et al., 2019).  

Wrong Product 

A customer’s assessment of the receipt of the wrong product shapes the decision to return an online 
purchase. In a study performed on retail consumers, 20% of participants admitted to purchasing the 
wrong product, with 38% feeling frustrated because of the purchase (Abdollahi et al., 2020). 
Researchers Dang and Pham (2018) stated that a wrong product purchase occurs when a customer 
receives merchandise that does not match the product ordered. Dang and Pham revealed that the 
perceived risk of wrong product purchase transpires when consumers believe they must keep the order. 
The perceived risk of a wrong product purchase for a firm occurs when a customer returns the order 
(Parihar et al., 2019). Chalotra (2018) studied the wrong product purchase responsibility from the firm’s 



 

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June 2022 | Volume 1, Number 2 

perspective and assessed the errors caused by an organization that causes a customer to receive a wrong 
product, while O’Reilly et al. (2018) researched the wrong product purchase responsibility from the 
customer’s perspective and assessed the errors caused by the consumer that cause a customer to receive 
a wrong product. Both researchers determined that the responsibility for a wrong product purchase arises 
when an error occurs during the order processing stage.  

Delivery Issues 

A customer’s assessment of a delivery issue shapes the decision to return an online purchase. Firms use 
order fulfillment to describe the transportation process between a source and a predetermined destination 
(Lin et al., 2020). Organizations use order fulfillment in an e-commerce context to demarcate the 
warehouse and delivery phases of the supply chain. Businesses use order fulfillment as a fundamental 
component in shaping customer behavior, and the success of this phase of the order process affects the 
shopping experience. Organizations describe order fulfillment as order selection, order acceptance, and 
order delivery, and firms measure the contribution to the overall customer-perceived performance of the 
product and the firm (Kautish & Sharma, 2019). 
 
Rantala et al. (2020) performed a qualitative case study on customer behavior in business-to-business 
markets to understand the influence of value-based selling on consumer intentions. The authors utilized 
the research question to uncover the value requirements necessary to influence customer decision-
making using data derived from consumer interactions. Rantala et al. discovered that the salesperson’s 
goal must align with the most cost-effective and suitable customer solution and rely on sales knowledge 
to influence consumer behavior. The author aligned the study with Rantala et al.’s research because of 
the shared methodology and the focus on environmental influences on customer intentionality.  

Rantala et al. (2020) performed a qualitative case study on customer behavior in business-to-business 
markets to understand the influence of value-based selling on consumer intentions. The authors utilized 
the research question to uncover the value requirements necessary to influence customer decision-
making using data derived from consumer interactions. Rantala et al. discovered that the salesperson’s 
goal must align with the most cost-effective and suitable customer solution and rely on sales knowledge 
to influence consumer behavior. The author aligned the study with Rantala et al.’s research because of 
the shared methodology and the focus on environmental influences on customer intentionality. 

Research Question 
The study explored the post-purchase cognitive dissonance phenomenology to answer the research 
question, What strategies do online retail furniture companies use to reduce customer merchandise 
return rates? Brooksbank and Fullerton (2020) described post-purchase cognitive dissonance 
phenomenology as a perceived discrepancy between cognitions that influence belief, perception, and 
attitude. Panwar and Khan (2020) observed this phenomenon in after-sales negotiations in which 
heightened brain activity caused customers’ emotional states to question the fairness of a deal. 
Brooksbank and Fullerton (2020) discovered that post-purchase cognitive dissonance occurs when a 
purchase includes customization, competitive efforts, or high costs, which increases the buyer’s 
perceived risk. A buyer’s cognitive state guides decision-making, and the post-purchase dissonance 
phenomenology motivates buyer remorse and subsequent merchandise returns. 



 

 

 

33 Business Management Research & Applications: A Cross-Disciplinary Journal 

The paper investigated online retail furniture companies’ strategies to reduce product return rates while 
demonstrating the relationship between the merchandise return reduction strategies, the problem 
statement, and phenomenology. The research question supports the problem statement by providing 
techniques for organizations to reduce merchandise return rates and improve organizational financial 
health. The author aligned the post-purchase cognitive dissonance phenomenology with the research 
question by reviewing cognitive customer states and the resulting decisions that influence product return 
rates. 

Findings of the Study 
The qualitative case study aimed to determine if a firm can decrease product return rates by applying a 
strategic approach. The author demonstrated the significance of the study to address the high rate of 
product returns, which exceeds $351 billion annually (Hjort et al., 2019). The study asked, What 
strategies do online retail furniture companies use to reduce customer merchandise return rates? The 
author related the research question to the problem statement by addressing the ability of a firm to 
manipulate product return rates. 

The author interviewed six participants in 45-minute structured interview sessions to collect information 
on strategies to reduce customer merchandise return rates. The Voice Memo tool recorded and 
documented the interviews, while Microsoft Word transcribed and coded the data. The author measured 
the frequency of the responses and isolated three emerging themes to address the research question. 
Table 1 shows the participants’ demographic data. 

Table 1 Participant Summary 

Participant Summary 

No. of 
Participants 

No. of 
Female 
Participants 

No. of Male 
Participants 

Participants 
Contacted 

Participants 
Responded 

Response 
Rate 

6 3 3 6 6 100% 

 
Theme 1: Understanding Customer Needs 

The study discovered the emergent theme of understanding customers’ needs as a strategy to reduce 
product returns in interviews with all six participants. Understanding customer needs ranked as the most 
frequent participant response for reducing customer merchandise returns with a 44.19% total response 
rate. Nonaka and Takeuchi (2021) explored the strategies of Fast Retailing’s CEO, Yanai, and identified 
meeting the customer’s needs as the first principle to support the soul of an organization. Rajaraman 
(2021) stated that a business could no longer choose to meet the customer’s needs but must do so to 
ensure the organization’s survival. Sajjanit and Rompho (2019) discovered the importance of a customer 
orientation strategy in retail that placed the customer’s needs first as a differentiator for measuring 
merchandise return performance metrics.   



 

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June 2022 | Volume 1, Number 2 

Evolving Needs. The participants were coded as P1-P6. Participant six, who was coded as P6, answered 
interview question one, How do you prepare yourself to reduce customer merchandise returns, by 
addressing the customer’s needs. P6 stated, “Remind myself that I’m walking the line between what the 
company wants and needs and what the customer wants and needs.” P6 revealed the importance of 
understanding the customer’s needs throughout the order process and the significance of specific 
consideration before the purchase and after delivery. Tresna et al. (2021) stated that dissatisfaction that 
leads to product returns stems from a firm misunderstanding a customer’s needs during the many stages 
of the sale. Trena et al. determined that a firm may not meet a customer’s need during the sale stage 
because of unrealistic product expectations that lead to purchasing the wrong product. Trena et al. 
revealed that a firm might not meet a customer’s need after the product delivery because of e-commerce 
policies that do not support product exchange.  

P2 answered interview question six, How do you tailor your strategy for reducing customer 
merchandise returns to different scenarios by exploring the necessity of customizing a strategy to 
decrease customer product returns based on the customer’s needs. P2 revealed that once a customer 
decides to return the merchandise, the organization must develop a unique solution to discourage the 
product return. P2 exemplified this concept by stating that when a customer experiences a shipping 
issue, an employee can offer a discount to meet the customer’s needs. Haverila et al. (2020) described a 
tailored response to a customer’s needs as a demonstration of empathy. Haverila et al. explained that 
preventing customer dissatisfaction starts with understanding the customer’s needs and delivering a 
personalized experience. 

Misunderstanding Needs. P5 answered question seven, What else do you want to offer about reducing 
customer merchandise returns, by exploring the organization’s responsibility to confirm the purchase 
with the buyer before placing the order to ensure the firm does not misunderstand the customer’s needs. 
P5 recommended inviting a product specialist, a service specialist, and the customer to participate in a 
three-way call to examine the customers’ needs and the probability of the product solving the need. 
Chudhury and Gulati (2020) presented the Kano Model as a technique for evaluating customer’s needs, 
and the authors highlighted the critical components of product and service. Chudhury and Gulati (2020) 
corroborated P5’s claim that multiple employees with differing skill sets must meet with the customer to 
assess and understand the buyer’s needs more accurately.  

P1 identified the influence of misunderstanding customers’ needs on the percentage of customer 
merchandise return rates. P1 described a customer with a time sensitivity need and that the discovery of 
this need after a late product delivery frequently leads to a dissatisfied customer and a subsequent 
product return. Ritola et al. (2020) classified the time-sensitivity customer need as operational 
information that drives the efficiency and effectiveness of return policies. Ritola et al. explained that 
operational information creates value for the customer and the firm by reducing the uncertainty and 
costs associated with merchandise returns. Table 3 provides an understanding customer needs analysis. 

  



 

 

 

35 Business Management Research & Applications: A Cross-Disciplinary Journal 

Table 3 Understanding Customer Needs Analysis 

Understanding Customer Needs Analysis 
 
Participant Interview Question Total count of references 

P1 3,5 3 

P2 6 1 

P3 1,6 2 

P4 3 2 

P5 4,6,7 4 

P6 1,3,4,6 7 

Total  19 

 

Theme 2: Policy and Procedure 

In the interviews with all six participants, the author discovered the emergent theme of an established 
policy and procedure as a strategy to reduce product returns. Policy and procedure ranked as the second 
most frequent participant response for reducing customer merchandise returns with a 37.21% total 
response rate. Urban et al. (2020) explored the benefits of customer product return policy and procedure 
to develop an effective organizational strategy. Urban et al. highlighted the advantages of evaluating 
customer product return behaviors stemming from policy and applied deep learning approaches to create 
better merchandise return procedures. Rathod (2021) demonstrated the advantages of a product return 
policy to decrease merchandise returns by refusing returns after 30-days past the delivery date.   

Standardization. P2 answered interview question two, What types of training have you received to 
reduce customer merchandise returns by commenting on the policies and procedures adopted by the 
firm and the effectiveness of implementing a standard process for reducing customer product return 
rates. P2 explained that the firm’s product return policy requires that the customer pay a 15% restocking 
fee and the cost of shipping, which discourages merchandise returns. Zhao et al. (2020) researched the 
influence of lenient return policies and procedures and determined that the more lenient the policy, the 
more significant the percentage of impulse buys. Zhao et al. reviewed firms with lenient product return 
policies and identified a correlation between lenient policies and increased non-defective product 
returns.  



 

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June 2022 | Volume 1, Number 2 

P4 answered interview question four, What strategies have you successfully used to reduce customer 
merchandise returns by addressing policies and procedures. P4 stated, “I also think following the 
procedures or protocols listed out by the company has helped to be successful. Customers purchasing 
their items can see these policies and procedures before deciding to purchase.” Wang et al. (2020) 
explored a product return policy’s ability to differentiate a firm and establish an organizational 
competitive advantage. Wang et al. (2020) stated that merchandise return policies and procedures 
decrease a consumer’s inherent risk and incentivize purchase intentions. Wang et al. claimed that 
establishing a product return policy remains vital for e-commerce success because the policy serves as a 
motivator for the initial purchase and a driver of customer satisfaction.  

P3 stated that adopting a product return policy has influenced the firm’s product offerings by 
highlighting products with high rates of return. P3 explained that the firm discourages merchandise 
returns by analyzing the most returned items and eliminating products with a high probability of return. 
Lin et al. (2020) revealed that a product return policy provides insight into customer return behavior and 
enhances merchandise return management. Lin et al. utilized a structural equation modeling approach to 
explore practical implications, like only offering excellent products to decrease merchandise returns. 

Flexibility. P6 answered research question five, What strategies have you unsuccessfully used to reduce 
customer merchandise returns, by explaining that the most effective product return policy and procedure 
must incorporate the flexibility necessary to address the customer’s merchandise concern. P6 described 
the importance of a mutually beneficial outcome for the customer and the company and stated that the 
firm must compromise to ensure all parties are satisfied with the resolution. Abbey et al. (2018) revealed 
the downfall of firms that create a universal approach to product returns that lacks consideration for 
customer behaviors and loyalty. Abbey et al. claimed that the most effective means of managing 
customer merchandise returns tightens restrictions on the likeliest return offenders, including customers 
who engage in return abuse and fraud. Abbey et al. posited that organizations should reward customer 
loyalty and longevity by loosening return protocol to ensure a happy customer and encourage repeat 
patronage. Table 4 provides the policy and procedure analysis. 

Table 4 Policy and Procedure Analysis 

Policy and Procedure Analysis 
 
Participant Interview Question Total count of reference 

P1 2 2 

P2 2 1 

P3 4,6 5 

P4 4 3 

P5 1,4 3 



 

 

 

37 Business Management Research & Applications: A Cross-Disciplinary Journal 

P6 5 2 

Total  16 

 

Theme 3: Product Accuracy and Clarity 

In the interviews with five participants, the author discovered the emergent theme of the importance of 
product accuracy and clarity as a strategy to reduce product returns. Product accuracy and clarity ranked 
the third most frequent participant response for reducing customer merchandise returns with an 18.60% 
total response rate. Gajewska et al. (2020) described product inaccuracy as one of the top three causes of 
customer dissatisfaction. Le (2021) identified accurate merchandise information as a strong influence on 
purchase intention by helping customers select the correct products. Wang (2020) revealed that accurate 
product information allows a firm to provide a suitable recommendation guide and reduce unsatisfied 
customers. 

Reduce Wrong Product Purchases. P3 explained the importance of providing accurate product 
information on the website to ensure the customer purchases the correct product and reduces product 
returns. P3 stated that an organization’s website should provide the customer with accurate product 
descriptions, pricing, and disclaimers. Dang and Pham (2018) discovered that a customer’s perceptions 
of an e-commerce company depend on website accuracy and reliable product information. Dang and 
Pham demonstrated that product clarity on the website influences purchase intention by simplifying the 
buying process and improving customer attitudes. Additionally, Dang and Pham found that accurate 
product information reduces the customer perceived risk of purchasing the wrong product and 
significantly decreases the likelihood of a subsequent product return.  

P6 answered question three, As an online retail furniture company employee, have you ever observed 
any particular actions taken by your co-workers to reduce customer merchandise returns by describing 
the actions taken by the sales staff to provide clear merchandise information and offer realistic product 
expectations. P6 explained that clarity in product expectations helps to minimize the customer’s 
probability of receiving an incorrect item. Stein and Ramaseshan (2020) described product-specific 
information’s role in clearly influencing customer expectations. Stein and Ramaseshan identified 
utilitarian-oriented or efficiency-based customers as the most likely to utilize clear product information 
to decrease the likelihood of merchandise returns. 

Influence Shopper Behavior. P1 answered interview question three, As an online retail furniture 
company employee, have you ever observed any particular actions taken by your co-workers to reduce 
customer merchandise returns by addressing product options. P1 stated, “Making sure our website has a 
lot of customization options so they’re getting exactly what they need for the space they have and 
they’re not ordering something that they don’t.” P1 explored the importance of an online retailer to 
provide all product options to ensure the buyer selects the correct item. P1 stated that the availability of 
options improves customer satisfaction and reduces merchandise returns. Todorovic et al. (2018) stated 
that well-represented merchandise options enhance the value of a website’s content. Todorovic et al. 



 

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June 2022 | Volume 1, Number 2 

claimed that more options provide the customer with increased product possibilities, which increases the 
customer’s satisfaction with the company and the product.  

P5 revealed that the company and the customer must have product clarity to reduce merchandise returns. 
P5 explained that a company that does not understand the product could not effectively describe the 
merchandise to the customer. Mumuni et al. (2019) described credibility as the extent to which a 
customer believes an organization and revealed that accurate product information increases the firm’s 
credibility. Mumuni et al. explained that credibility plays a significant role in influencing consumer 
shopping behaviors, attitudes, and customer satisfaction. Table 5 provides the product accuracy and 
clarity analysis. 

Table 5 Product Accuracy and Clarity Analysis 

Product Accuracy and Clarity Analysis 
 
Participant Interview Question Total count of reference 

P1 3 1 

P2  0 

P3 1,3 4 

P4 3 1 

P5 7 1 

P6 3 1 

Total  8 

 

Summary and Conclusion 
The study uncovered several key findings regarding optimal strategies for decreasing merchandise return 
rates. The participants demonstrated that understanding customer needs remained the most common 
strategy, at 44.19%, and required an evaluation of the consumer’s evolving needs to avoid 
misunderstanding the buyer’s demands. The participants revealed that policy and procedure remained 
the second most common strategy, at 37.21%. Participants highlighted the importance of standardization 
to enhance the effectiveness of the policy but the flexibility to tailor the procedure to the situation. The 
participants posited that product accuracy and clarity remained the third most common strategy, at 



 

 

 

39 Business Management Research & Applications: A Cross-Disciplinary Journal 

18.60%, and explained that accuracy reduces wrong product purchases by influencing shopping 
behavior. Table 6 provides the emerging themes and frequencies. 

Table 6 Emerging Themes and Frequencies 

Emerging Themes and Frequencies 

Emerging Theme Frequency Percentage of total 

Understanding customer 

needs 

19 44.19% 

Policy and procedure 16 37.21% 

Product accuracy and clarity 8 18.60% 

Total 43 100% 

 

Understanding Customer Needs 

The author revealed the importance of understanding customer needs as a tool to address customer 
merchandise return rates. The finding on the necessity of understanding customer needs substantiates 
Makhitha and Ngobeni’s (2021) assertion that an online company must embrace technology to match the 
customer’s needs with the suitability of a product to diminish product returns. The author contributes to 
the field of study by addressing the approach necessary to enhance the firm’s customer service 
performance. The study advances theoretical knowledge by supporting a strategic approach, influencing 
consumer behavior predictors. 

Policy and Procedure 

The author underscored the necessity of adopting policy and procedures for reducing product return 
rates. The study’s revelation of the significance of policy and procedure supports de las Heras-Rosas and 
Herrera’s (2021) declaration that organizations actively pursuing trend identification discovered from an 
established product return procedure reduce threats to commerce. Additionally, the author contributes to 
the significance of the field of study by supporting the means for increasing the profitability of 



 

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June 2022 | Volume 1, Number 2 

transactions. The research advances theoretical knowledge by encouraging self-regulation and self-
reflection to expose compulsive behaviors. 

Produce Accuracy and Clarity 

The author highlights the significance of product accuracy and clarity to decrease merchandise return 
rates. The discovery of the importance of product accuracy and clarity corroborates Bozkurt and 
Gligor’s (2019) statement that unrealistic product expectations derived from misplaced information or 
system errors lead to product dissatisfaction. The author contributes to the field of study by encouraging 
actions to influence the behavior characteristics of consumers. The study advances theoretical 
knowledge by addressing behavioral psychology based on targeted relationship parameters. 
Additionally, the paper revealed similarities between the emerging themes, including the focus on 
manipulating customer behavior and the quest to improve the customer experience, and differences, 
including the customer and firm’s sense of responsibility. 

Theoretical Implications 
The study’s findings confirmed Bandura’s (1986) SCT framework by demonstrating the ability of an 
environmental stimulus to influence an organism’s response. The author answered the research question 
by explaining that an online furniture retailer embraces three strategic approaches to reduce customer 
merchandise returns: understanding customer needs, policy and procedure, and product accuracy and 
clarity. The author’s research presented the strategic approach as the environmental stimulus and the 
customer product return behavior as the organism’s response. 
 
There were several strengths and weaknesses of the research. One strength of the study was the data 
collection method, as the author received detailed responses afforded by an interview approach. A second 
strength was the qualitative methodology, as the author utilized the findings to address the phenomenology 
of post-purchase cognitive dissonance. One weakness of the study was the small sample size, which 
prevented the generalization of the results. A second weakness was the case study research design, which 
challenges applying the findings to different industries. 
 

Implications for Professional Practice 
First, the study demonstrated that strategic approaches motivate consumer behaviors and enhance 
organizational success. The author presented a framework for identifying the most frequently adopted 
strategies for reducing product return rates and underscored the influence of decreasing return rates on a 
firm’s financial health. The participant’s responses provided applied strategic approaches, including 
product accuracy and clarity, that reduced unrealistic expectations and return rates while improving the 
firm’s financial success. 

Second, the study introduced a concept for improving customer relationships by adopting an approach to 
motivate social change. The author presented a model that emphasizes client care and customer 
satisfaction to stimulate a rewarding shopping experience while demonstrating the effectiveness of 
strategic approaches to transform interactions between a firm and a customer. An organization must 



 

 

 

41 Business Management Research & Applications: A Cross-Disciplinary Journal 

embrace techniques including understanding customer needs to strengthen and manage relationships and 
determine product suitability, thereby reducing merchandise return rates. 

Third, the research provided the findings to support the benefits of a customer-centric organizational 
approach. The overwhelming response from the participants in the study focused on the effects of an 
improved customer experience on the reduction of merchandise return rates. A firm’s ability to offer the 
necessary tools to fulfill the customer’s needs, develop processes and procedures, and deliver product 
accuracy and clarity, ensures the customer remains in the center of organizational operations. A 
company’s financial success stemming from the reduction of product return rates depends on customer-
centric behavior to ensure a positive customer experience. 

Recommendations for Future Research 
For future research, the author recommends a quantitative study based on the effectiveness of the product 
return rate strategy. A quantitative methodology would increase the sample size and create more 
generalizable conclusions. The author also recommends a follow-up study on the strategic methods 
utilized by brick-and-mortar furniture retailers to compare the approaches used by various shopping 
channels. The author recommends a follow-up study that focuses on interviewing customers to determine 
the buyer’s opinions on the most effective strategic techniques to reduce product return rates to compare 
the perspectives of different groups. 
 

Recommendations for Practice 
 
The author recommends that online furniture retailers adopt a technique that ensures employees 
understand the customer’s needs by asking questions and confirming that the product meets the indicated 
needs. The author also recommends that decision-makers in a firm understand the customer’s needs to 
reduce wrong product deliveries because of misunderstanding and encourages constant communication to 
meet the evolving consumer needs throughout the order process.  
 
The author recommends that online furniture retailers develop policies and procedures to provide 
merchandise return guidelines for the company and the customer. The author recommends that an 
organization implement standardized practices to reduce a customer’s perceived purchase risk but allow 
flexibility to reward consumer longevity and motivate loyalty. A final recommendation is that the online 
furniture retailers ensure product accuracy and clarity to help facilitate a successful transaction and 
customer satisfaction. Firms should verify the accuracy of website product content and employee product 
knowledge to reduce wrong product purchases and positively influence shopping behavior. 
 

  



 

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Appendix A 
Interview Guide 

Interview Questions 

 
1. How do you prepare yourself to reduce customer merchandise returns? 

2. What types of training have you received to reduce customer merchandise returns? 

3. As an online retail furniture company employee, have you ever observed any particular actions taken 

by your co-workers to reduce customer merchandise returns? 

4. What strategies have you successfully used to reduce customer merchandise returns? 

5. What strategies have you unsuccessfully used to reduce customer merchandise returns? 

6. Do you tailor your strategy for reducing customer merchandise returns to different scenarios? 

7. What else do you want to offer about reducing customer merchandise returns? 

 
 

 
 

  



 

 

 

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	Abstract
	Introduction
	The prevalence of customer product returns in the United States is staggering. Rintamaki et al. (2021) found that customer merchandise returns represent over $351 billion a year, with returned products exceeding 50% of online sales (Hjort et al., 2019...
	The author completed the study by conducting a structured interview with online retail furniture employees in Sarasota, Florida, who work in the customer experience field. The study used a qualitative case study to answer the research question, What s...
	Review of the Literature
	Organizations are motivated to examine why consumers return products because of the high percentage of consumers concerned about the risk. Lin et al. (2020) determined that analyses on product return motivation could help organizations understand shop...
	Organizations experience product returns for many reasons, including unrealistic product expectations, poor product quality, wrong product, and delivery issues. Researchers discovered that unrealistic product expectations generate merchandise returns ...
	Unrealistic Product Expectations
	A customer’s expectations of a product shape the consumer’s decision to return an online purchase. Nitsche and Gerlach (2020) described unrealistic expectations as an overestimation caused by information asymmetries, which negatively influence organiz...
	Poor Product Quality
	A customer’s assessment of product quality shapes the decision to return an online purchase. Lin et al. (2020) cited the International Standards of Organizations, which stated that a product’s quality describes the generic characteristics of an item a...
	Wrong Product
	A customer’s assessment of the receipt of the wrong product shapes the decision to return an online purchase. In a study performed on retail consumers, 20% of participants admitted to purchasing the wrong product, with 38% feeling frustrated because o...
	Delivery Issues
	Rantala et al. (2020) performed a qualitative case study on customer behavior in business-to-business markets to understand the influence of value-based selling on consumer intentions. The authors utilized the research question to uncover the value re...
	Rantala et al. (2020) performed a qualitative case study on customer behavior in business-to-business markets to understand the influence of value-based selling on consumer intentions. The authors utilized the research question to uncover the value re...
	Research Question
	Summary and Conclusion
	The study uncovered several key findings regarding optimal strategies for decreasing merchandise return rates. The participants demonstrated that understanding customer needs remained the most common strategy, at 44.19%, and required an evaluation of ...
	Understanding Customer Needs
	The author revealed the importance of understanding customer needs as a tool to address customer merchandise return rates. The finding on the necessity of understanding customer needs substantiates Makhitha and Ngobeni’s (2021) assertion that an onlin...
	Policy and Procedure
	The author underscored the necessity of adopting policy and procedures for reducing product return rates. The study’s revelation of the significance of policy and procedure supports de las Heras-Rosas and Herrera’s (2021) declaration that organization...
	Produce Accuracy and Clarity
	The author highlights the significance of product accuracy and clarity to decrease merchandise return rates. The discovery of the importance of product accuracy and clarity corroborates Bozkurt and Gligor’s (2019) statement that unrealistic product ex...
	Theoretical Implications
	The study’s findings confirmed Bandura’s (1986) SCT framework by demonstrating the ability of an environmental stimulus to influence an organism’s response. The author answered the research question by explaining that an online furniture retailer embr...
	There were several strengths and weaknesses of the research. One strength of the study was the data collection method, as the author received detailed responses afforded by an interview approach. A second strength was the qualitative methodology, as t...
	Implications for Professional Practice
	First, the study demonstrated that strategic approaches motivate consumer behaviors and enhance organizational success. The author presented a framework for identifying the most frequently adopted strategies for reducing product return rates and under...
	Second, the study introduced a concept for improving customer relationships by adopting an approach to motivate social change. The author presented a model that emphasizes client care and customer satisfaction to stimulate a rewarding shopping experie...
	Third, the research provided the findings to support the benefits of a customer-centric organizational approach. The overwhelming response from the participants in the study focused on the effects of an improved customer experience on the reduction of...
	Recommendations for Future Research
	For future research, the author recommends a quantitative study based on the effectiveness of the product return rate strategy. A quantitative methodology would increase the sample size and create more generalizable conclusions. The author also recomm...
	Recommendations for Practice
	The author recommends that online furniture retailers adopt a technique that ensures employees understand the customer’s needs by asking questions and confirming that the product meets the indicated needs. The author also recommends that decision-make...
	The author recommends that online furniture retailers develop policies and procedures to provide merchandise return guidelines for the company and the customer. The author recommends that an organization implement standardized practices to reduce a cu...
	References
	Appendix A

