Question

Suppose you are running an online marketplace, and you want to reduce the number of returns your customers make so that you can reduce your shipping costs. How might you use the following concepts to encourage your customers to make purchases they don’t regret? Adaptation, projection bias, peak-end evaluation, pre-commitment.

Answer 1

TO DECREASE THE NUMBER OF SALES RETURN WE CAN UTILIZE THE FOLLOWING CHOICES-

1. PROPER DISPLAY OF THE PRODUCT OVER THE WEBSITE-
2. PROPER AND CLEAR DESCRIPTION OF THE PRODUCT
3. PRICING ,QUALITY AND USAGE GUIDANCE FOR THE PRODUCT
4. BONUS AND AWARDS WHICH CAN BE UTILIZED AFTER THE PASSAGE OF RETURN PERIOD
5. LIMIT OF REFUNDING/REPLACING/RETURNING ITEM PER CUSTOMER

ADAPTATION-

website can be designed to be consumer/user friendly where consumer can utilize the filters , price range , choices, preferences and other tools so they can be adaptive and specific in their purchase and can maximize their satisfaction and thus the chances of sale returns would decline.

PROJECTION BIAS-

projection bias means lack of rationality. preference taste and needs changes over a time therefore in online shopping product differentiation ,comparison and consumer reviews play an important role.consumer should be made aware concern with the product specification so he wouldn't over estimate his expectation with current level of requirement.

PEAK END EVALUATION- it is concerned with the consumer psychology. consumer remembers the event, taste and the utility derived from a product and this can be used as review or feedback which can be used for their further future purchasing. the things which gave them maximum or better utility may be suggested and presented in their wishlist where as those things which they have given lower ratings can be removed from their preferences.this would lead to increase the consumer satisfaction.

PRE-COMMITMENT-

pre-commitment means to execute a future promise.when consumer have a faith in any product and services provided by a firm then they can purchase it and the firm generally ensure the consumer against the fault and any defect in the product. this create a moral and a good faith between both parties.thus the sales can be increased.