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INVESTIGATING RETURNS PROCESS FOR NON-FOOD ITEMS BASED ON THEORY OF PLANNED BEHAVIOUR (MASS MARKET RETAILER)A case study : plcPresenter: Melissa Giannotti MSc Retail Management Supervisor: Tamira King 28th September 2016

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OUTLINE

I

COMPANY & PROBLEM BACKGROUND AIMS & OBJECTIVES

IIFINDINGS FROM THE LITERATURE

CONCEPTUAL FRAMEWORK

IIITYPE OF RESEARCH

PROCEDURE ANALYSIS

IVFINDINGS BASED ON MAIN OBJECTIVES

VCONCLUSION

& RECOMMENDA

TION


BACKGROUND

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Overview

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DClothing brand range Tu 2004 (Sainsbury’s, 2013)

Online clothing platform in 2015

£800 million of sales per year (Bulletin, 2015) 20% of revenue (Osborn,2016)

PRO

BLE

M B

AC

KG

RO

UN

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Complexity of product returns (Bonified, Cole and Shults, 2002)

Clothing is a high-involvement product category (Tang and Ghose 2003)

Increase of return rate in near future


CURRENT SCENARIO

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SAINSBURY’S RETURN OPTIONS

Returns by Click & Collect • Free of charge • Online orders- 710 participating

stores (Market Line, 2016)

Returns by Post • Charge of £ 3.50 (Tu clothing,

2016).

SAINSBURY’S CHALLENGE

• Only participating stores that house the product can restock. Logistics costs and management issues (lost-damage)

• Directly sent to the company’s distribution centres. Costs –reverse logistics (Osborn,2016)

70% of the customer base prefer returning items through the in-store process (Osborn, 2016)


RESEARCH AIM

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AIM of the study

To investigate returns process intentions of Sainsbury’s customers

To determine the FACTORS affecting the Sainsbury’s customers return process based on previous studies

To explain customers return process

BEHAVIOUR using the Theory of Planned

Behavior (TPB)


FINDINGS FROM THE LITERATURE

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•Lenient Policy +purchases +returns (Padnabhan & Png, 1995)• Restrictive Policy +consumer risk -returns (Bechwati & Seigal, 2009

• Gap in the literature review

• Exchange process factors (Petersen and Kumar, 2009)

•Minimise PR impact on the bottom line (Rogers & Tibben-Lembke, 1998)

•Formalisation of the process (Ruekert, Walker, & Roering, 1985)

•Economic cost (Petersen & Kumar, 2015) •Return rate +20%=0 (Speights & Statistician 2013) •Long-term value (Petersen & Kumar, 2010)

PRODUCT RETURNS

REVERSE LOGISTICS

RETURN POLICY

CONSUMER BEHAVIOUR ?

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“The more favourable the attitude and subjective norm to a behaviour, and the greater the perceived behavioural control, the stronger should be and individual’s

intentions to perform the behaviour” (Ajzen, 1991)

1. To explore the consumers’ attitude towards online and in store product returns.

2. To investigate the consumers’ perception of others’ opinion and whether this affects the consumers’ future choice.

3. To investigate the consumers’ perception of the ease or difficulty of carrying out returns online and in-store.

4. To analyse whether past experience of returning products affect future consumer choice and return behaviour.

5. To explore the consumer’s motivations to return products.

OBJECTIVES


APPROACH TO THE PROBLEM

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TYPE OF RESEARCH : CASE STUDY

SOURCE

Sainsbury’s NON-FOOD customers

COLLECTION METHOD

• Structured interviews

• Face to face

• Interview guide

PROCESSINGDATA

• Recording & transcription

• Note taking

• Nvivo software

Research Question: What are the intentions and motivations of Sainsbury’s customers in their return process and how does it affect their behavior?

INTRODUCTION Introduce yourself & purpose of the research

1. EXPLORATION OF ATTITUDE(AACT)

Can you give me an example of when you last returned an item to Sainsbury?How did you feel about this experience?

Approx. 2 minutes

2. EXPLORATION OF SUBJECTIVE NORM (SN)

How do you think your friends & family take things back?Are you influenced by their opinion?

Approx.2minutes

3. EXPLORING CONTROL BELIEF(PBC)

Do you think it is easy or difficult return in store or at the post office and why?What would you change to make it easier?

Approx.2 minutes

4. EXPLORING PAST EXPERIENCE(PE)

How does your past experience influence your choice to return next?What was your best return experience and why?

Approx. 3 minutes

5. EXPLORING INTENTIONS(BI)

Why do you chose to return in store/ post? Approx. 2 minutes

CONCLUSION Do you have anything further you would like to add about return process?Thanks for participating. If you would like any further information I can give you my university card.

Approx. 2 minutes


KEY FINDINGS

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Customer’s Attitude

• 9/10 interviewee “Click & Collect” service of Sainsbury’sat the participating stores

• Customers tend to have a positive attitude towards returningitems at the store :

“ Brilliant !! Really Good !! , it’s so simple to return things (at the store)” (Interviewee 7)

• 1/10 experienced the Post Office to return the products, reporting a negative attitude towards the service.

“It was time consuming as there was a long queue at the desk” (Interviewee 8)

Click & Collect

Return by Post

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Consumer’s perception towards other’s opinion - (SN)

Consumer’s perception of the ease of carrying out returns - (PBC)

Past Experience of returning products – (PE)

Findings based on the ‘5’ Objectives

“Definitely yes. Due to their experience I will decide if it is better to go to the store or by post” (Interviewee 8)“Yes it would definitely stop me from buying something if I knew the return process is going to be hard ” – (Interviewee 4)

“It is quite straightforward and very easy process to do (store)” – (Interviewee 10)

“I had a positive experience so I think I will do the same (return process)” (Interviewee 9)“I think that if I feel happy and satisfied during my return, I'll shop again next time” (Interviewee 10)

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Factors influencing positive perception to in-store returns!

Time• “I come to the store. I have never tried the post office because I work nearby the

building next to Sainsbury’s. It’s just faster than going to the post office as you have to queue there for an hour” – (Interviewee 2)

Money• “I have never experienced the post. But if you have to pay I would never do it” –

(Interviewee 6)

Skills• “Because you don’t need to do anything, you don’t need to tape it down”

(Interviewee 11)

Cooperation• “By post you have to pay for your postage and I want to choose another product that

can suit me more. Also at the store you can communicate to someone for help” – (Interviewee 9)


CONCLUSION & RECOMMENDATION

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ONLINE RETURNS RECOMMENDATION

- Intuitive return process with clear return policies and steps to follow (Web site)

- Each package should include information about the return process. (E.g. receipt)

- A security sticker should be included in the customers’ order.

- Email confirmation that the return has been processed.

- “Home service delivery”- Sainsbury should take charge of all processing costs to incentive customers to use the post - Improve the refund time frame (from 14 to 19 days)

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IN STORE RETURN RECOMMENDATION

Returns in store are expected to increase

Create a specific place or desk for returns. Return non-food items to a different place. It would be much quicker and easier.

Employ more people at the customer service desk as during the peak hours are not sufficient.

Make the customer service bigger or provide a customer service only for returns.


Thank you all, for your kind attention !

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