29 Business Management Research & Applications: A Cross-Disciplinary Journal 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 30 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 32 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. 34 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. 36 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. 38 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 40 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. 42 June 2022 | Volume 1, Number 2 References Abbey, J., Ketzenberg, M., & Metters, R. (2018). A more profitable approach to product returns. MIT Sloan Management Review, 60(1), 1-6. https://sloanreview.mit.edu Abdollahi, S. M., Ranjbarian, B., & Kazemi, A. (2020). An investigation of the antecedents of consumers’ confusion in purchasing an outbound package tour in the city of Isfahan by Fuzzy Delphi Method. Iranian Journal of Management Studies, 13(3), 527-564. https://doi.org/10.22059/ijms.2020.278554.673581 Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs: Prentice-Hall. Bozkurt, S. & Gligor, D. (2019). Customers’ behavioral responses to unfavorable pricing errors: The role of perceived deception, dissatisfaction, and price consciousness. The Journal of Consumer Market- ing, 36(6), 760-771. https://doi.org/10.1108/JCM-06-2018-2726 Brison, N. T., Pickett, A. C., & Brown, K. M. (2020). Losing weight with Charles and Dan: Examining potential liability for endorser claims in weight loss advertisements. Sport Marketing Quarterly, 29(2), 134-147. https://doi.org/10.32731/SMQ.292.062020.05 Brooksbank, R., & Fullerton, S. (2020). Cognitive dissonance revisited: A typology of B2B buyers’ post-decision ‘cognitive states’ and its implications for sales professionals. Asia Pacific Journal of Mar- keting and Logistics, 32(8), 1759-1782. https://doi.org/10.1108/APJML-01-2019-0068 Cankaya, S. Y. (2020). The effects of strategic sourcing on supply chain strategies. Journal of Global Operations and Strategic Sourcing, 13(2), 129-148. https://doi.org/10.1108/JGOSS-01-2019-0002 Chalotra, V. (2018). Order processing process in physical distribution adopted by small scale cements manufacturing firms. Journal of Supply Chain Management Systems, 7(3), 8-15. http://www.manu- script.publishingindia.com Chudhury, D. K. & Gulati, U. (2020). Product attributes based on customer’s perception and their effect on customer satisfaction: The Kano analysis of mobile brands. Decision, 47(1), 49-60. https://doi.org/10.1007/s40622-020-00233-x Daroch, B., Nagrath, G., & Gupta, A. (2021). A study on factors limiting online shopping behaviour of consumers. Rajagiri Management Journal, 15(1), 39-52. https://doi.org/10.1108/RAMJ-07-2020-0038 Dang, V. T. & Pham, T. L. (2018). An empirical investigation of consumer perceptions of online shop- ping in an emerging economy: Adoption theory perspective. Asia Pacific Journal of Marketing and Lo- gistics, 30(4), 952-971. https://doi.org/10.1108/APJML-01-2018-0038 https://sloanreview.mit.edu/ https://doi.org/10.22059/ijms.2020.278554.673581 https://doi.org/10.1108/JCM-06-2018-2726 https://doi.org/10.32731/SMQ.292.062020.05 https://doi.org/10.1108/APJML-01-2019-0068 https://doi.org/10.1108/JGOSS-01-2019-0002 http://www.manuscript.publishingindia.com/ http://www.manuscript.publishingindia.com/ https://doi.org/10.1007/s40622-020-00233-x https://doi.org/10.1108/RAMJ-07-2020-0038 https://doi.org/10.1108/APJML-01-2018-0038 43 Business Management Research & Applications: A Cross-Disciplinary Journal de las Heras-Rosas, C. & Herrera, J. (2021). Innovation and competitive intelligence in business: A bibliometric analysis. International Journal of Financial Studies, 9, 1-18. https://doi.org/10.3390/ijfs9020031 Gajewska, T., Zimon, D., Kaczor, G., & Madzik, P. (2020). The impact of the level of customer satisfac- tion on the quality of e-commerce services. International Journal of Productivity and Performance Management, 69(4), 666-684. https://doi.org/10.1108/IJPPM-01-2019-0018 Haverila, M., Haverila, K., & Arora, M. (2020). Comparing the service experience of satisfied and non- satisfied customers in the context of wine tasting rooms using the SERVQUAL model. International Journal of Wine Business Research, 32(2), 301-324. Hjort, K., Hellstrom, D., Karlsson, S., & Oghazi, P. (2019). Typology of practices for managing consumer returns in internet retailing. International Journal of Physical Distribution & Logistics Management, 49(7), 767-790. https://doi.org/10.1108/IJPDLM-12-2017-0368 Kautish, P., & Sharma, R. (2019). Managing online product assortment and order fulfillment for superior e-tailing service experience. Asia Pacific Journal of Marketing and Logistics, 31(4), 1161- 1192. https://doi.org/10.1108/APJML-05-2018-0167 Le, M. T. H. (2021). The impact of brand love on brand loyalty: The moderating role of self-esteem and social influences. Spanish Journal of Marketing – ESIC, 25(1), 156-180. https://doi.org/10.1108/SJME- 05-2020-0086 Lin, D., Lee, C. K. M., Siu, M. K., Lau, H., & Choy, K. L. (2020). Analysis of customers’ return behaviour after online shopping in China using SEM. Industrial Management & Data Systems, 120(5), 883-902. https://doi.org/10.1108/IMDS-05-2019-0296 Lok, S. Y. P., Vui, C. N., Chuen, S. K., & Wei, L. H. (2019). Modelling perceived value, trust, satisfaction and consumer commitment: An analysis of fast moving consumer goods in Malaysia. Global Business and Management Research, Suppl. Special Issue, 11(2), 185-196. http://www.gbmrjournal.com Makhitha, K. M., & Ngobeni, K. (2021). The influence of demographic factors on perceived risks affecting attitude towards online shopping. South African Journal of Information Management, 23(1), 1- 9. https://doi.org/10.4102/sajim.v23i1.1283 Moudatsou, M., Koukouli, S., Palioka, E., Pattakou, G., Teleme, P., Fasoi, G., Kaba, E., & Stavropoulou, A. (2021). Caring for patients with psychosis: Mental health professional’s views on informal caregivers’ needs. International Journal of Environmental Research and Public Health, 18(6), 1-14. https://doi.org/10.3390/ijerph18062964 https://doi.org/10.3390/ijfs9020031 https://doi.org/10.1108/IJPPM-01-2019-0018 https://doi.org/10.1108/IJPDLM-12-2017-0368 https://doi.org/10.1108/APJML-05-2018-0167 https://doi.org/10.1108/SJME-05-2020-0086 https://doi.org/10.1108/SJME-05-2020-0086 https://doi.org/10.1108/IMDS-05-2019-0296 http://www.gbmrjournal.com/ https://doi.org/10.4102/sajim.v23i1.1283 https://doi.org/10.3390/ijerph18062964 44 June 2022 | Volume 1, Number 2 Mumuni, A. G., Lancendorfer, K. M., O’Reilly, K. A., & MacMillian, A. (2019). Antecedents of consumers’ reliance on online product reviews. Journal of Research in Interactive Marketing, 13(1), 26- 46. https://doi.org/10.1108/JRIM-11-2017-0096 Nonaka, I. & Takeuchi, H. (2021). Strategy as a way of life. MIT Sloan Management Review, 63(1), 56- 63. https://sloanreview.mit.edu Nitsche, B. & Gerlach, B. (2020). Overcoming barriers in supply chain analytics—Investigating measures in LSCM organizations. Logistics, 4(1), 1-27. https://doi.org/10.3390/logistics4010005 O’Reilly, K. A., MacMillian, A., Mumuni, A. G., & Lancendorfer, K. M. (2018). Factors affecting consumers’ online product review use. Qualitative Market Research, 21(3), 375-400. https://doi.org/10.1108/QMR-01-2016-0004 Panwar, T. & Khan, K. (2020). Evolution of neuromarketing and its applicability in on-demand app- based services in India: A theoretical perspective. IUP Journal of Marketing Management, 19(4), 7-34. https://iupindia.in Parihar, P., Dawra, J., & Sahay, V. (2019). The role of customer engagement in the involvement- loyalty link. Marketing Intelligence & Planning, 37(2), 66-79. https://doi.org/10.1108/MIP-11-2017-0318 Rantala, T., Apilo, T., Palomaki, K., & Valkokari, K. (2020). Selling data-based value in business-to- business markets. Technology Innovation Management Review, 10(1), 45-53. https://timreview.ca/arti- cle/1313 Rathod, J. (2021). Factors underlying consumer online buying decisions in an Indian context. Academy of Marketing Studies Journal, 25(1), 1-8. https://www.abacademies.org Rintamaki, T., Spence, M. T., Saarijavari, H., Joensuu, J., & Yrjola, M. (2021). Customers’ perceptions of returning items purchased online: Planned versus unplanned product returners. International Journal of Physical Distribution & Logistics Management, 51, 403-422. https://doi.org/10.1108/IJPDLM-10- 2019-0302 Ritola, I., Krikke, H., & Caniels, M. C. J. (2020). Learning from returned products in a closed loop sup- ply chain: A systematic literature review. Logistics, 4(2), 1-13. https://doi.org/10.3390/logistics4020007 Russo, I., Confente, I., Gligor, D., & Cobelli, N. (2019). A roadmap for applying qualitative compara- tive analysis in supply chain research: The reverse supply chain case. International Journal of Physical Distribution & Logistics Management, 49(1), 99-120. https://doi.org/10.1108/IJPDLM-02-2018-0056 Sajjanit, C., & Rompho, N. (2019). Measuring customer-oriented product returns service performance. International Journal of Logistics Management, 30(3), 772-796. https://doi.org/10.1108/IJLM-06-2018- 0157 https://doi.org/10.1108/JRIM-11-2017-0096 https://sloanreview.mit.edu/ https://doi.org/10.3390/logistics4010005 https://doi.org/10.1108/QMR-01-2016-0004 https://iupindia.in/ https://doi.org/10.1108/MIP-11-2017-0318 https://timreview.ca/article/1313 https://timreview.ca/article/1313 https://www.abacademies.org/ https://doi.org/10.1108/IJPDLM-10-2019-0302 https://doi.org/10.1108/IJPDLM-10-2019-0302 https://doi.org/10.3390/logistics4020007 https://doi.org/10.1108/IJPDLM-02-2018-0056 https://doi.org/10.1108/IJLM-06-2018-0157 https://doi.org/10.1108/IJLM-06-2018-0157 45 Business Management Research & Applications: A Cross-Disciplinary Journal Sikora, M. (2021). Factors influencing the improvement of procurement processes and cooperation with suppliers. European Research Studies, 24(1), 1129-1138. https://doi.org/10.358.8/ersj/2013 Stein, A. & Ramaseshan, B. (2020). The customer experience – Loyalty link: Moderating role of motivation orientation. Journal of Service Management, 31(1), 51-78. https://doi.org/10.1108/JOSM- 04-2019-0113 Todorovic, V., Maslaric, M., Bojic, S., Jokic, M., Mircetic, D., & Nikolicic, S. (2018). Solutions for more sustainable distribution in the short food supply chains. Sustainability, 10(10), 1-27. https://doi.org/10.3390/su10103481 Tresna, P. W., Herawati, T., & Dai, R. M. (2021). The influence of customer experience on repurchase intention to Shopee application users. Review of Integrative Business and Economics Research, suppl. Supplementary Issue 2, 10, 94-102. http://buscompress.com Urban, G., Timoshenko, A., Dhillon, P., & Hauser, J. R. (2020). Is deep learning a game changer for marketing analytics? MIT Sloan Management Review, 61(2), 71-76. https://sloanreview.mit.edu Vo, B., Kongar, E., & Barraza, M. F. S. (2019). Kaizen event approach: A case study in the packaging industry. International Journal of Productivity and Performance Management, 68(7), 1343-1372. https://doi.org/10.1108/IJPPM-07-2018-0282 Wang, M. (2020). Applying internet information technology combined with deep learning to tourism collaborative recommendation system. PLoS One, 15(12), 1-18. https://doi.org/10.1371/jour- nal.pone.0240656 Wang, Y., Anderson, J., Joo, S., & Huscroft, J. R. (2020). The leniency of return policy and customers’ repurchase intention in online retailing. Industrial Management & Data Systems, 120(1), 21-39. https://doi.org/10.1108/IMDS-01-2019-0016 Zhao, X., Hu, S., & Meng, X. (2020). Who should pay for return freight in the online retailing? Retailers or consumers. Electronic Commerce Research, 20(2), 427-452. https://doi.org/10.1007/s10660-019- 09360-9 https://doi.org/10.358.8/ersj/2013 https://doi.org/10.1108/JOSM-04-2019-0113 https://doi.org/10.1108/JOSM-04-2019-0113 https://doi.org/10.3390/su10103481 http://buscompress.com/ https://sloanreview.mit.edu/ https://doi.org/10.1108/IJPPM-07-2018-0282 https://doi.org/10.1371/journal.pone.0240656 https://doi.org/10.1371/journal.pone.0240656 https://doi.org/10.1108/IMDS-01-2019-0016 https://doi.org/10.1007/s10660-019-09360-9 https://doi.org/10.1007/s10660-019-09360-9 46 June 2022 | Volume 1, Number 2 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? 47 Business Management Research & Applications: A Cross-Disciplinary Journal Register and submit your work to Business Management Research and Applications: A Cross-Disciplinary Journal (columbiasouthern.edu) Business Management Research and Applications: A Cross-Disciplinary Journal (BMRA) (ISSN 2769-4666) is an open-access (CC BY-ND 4.0), peer-reviewed journal that publishes original research as well as works that ex- plore the applied implications of others’ research, concep- tual papers, and case studies (including teaching notes for review) that have a business administration and manage- ment slant. BMRA welcomes original submissions from researchers, practitioners, and Master’s/doctoral students from the following disciplines: business management, oc- cupational safety, cybersecurity, finance, marketing, en- trepreneurship, public administration, health services, fire safety, human resources, project management, healthcare management, and information technology. Master’s de- gree-level student authors must be co-authors with faculty or professional researchers in the field. BMRA is a partici- pant with the LOCKSS archival system, Alabama Digital Preservation Network | ADPNet. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. https://bmrajournal.columbiasouthern.edu/index.php/bmra/index https://bmrajournal.columbiasouthern.edu/index.php/bmra/index http://www.adpn.org/ http://creativecommons.org/licenses/by-nd/4.0/ http://creativecommons.org/licenses/by-nd/4.0/ http://creativecommons.org/licenses/by-nd/4.0/ 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