Please use this identifier to cite or link to this item:
|Title:||Reply to "do returns policies intensify retail competition?"|
|Source:||Padmanabhan, V., Png, I.P.L. (2004). Reply to "do returns policies intensify retail competition?". Marketing Science 23 (4) : 614-618. ScholarBank@NUS Repository. https://doi.org/10.1287/mksc.1040.0091|
|Abstract:||Returns policies are common in many sectors of retail distribution. Padmanabhan and Png (1997) showed that with demand uncertainty, a returns policy could improve manufacturer profitability under certain conditions. Wang (2004) showed that returns policies do not change manufacturer profitability when demand is certain and retailing is competitive. We show that returns policies do increase manufacturer profitability by attenuating retailer price competition when demand is low and intensifying competition when demand is high. Importantly, this effect holds only in the presence of demand uncertainty. Further, the conditions under which a returns policy raises the manufacturer's profit are weaker when retailing is a duopoly than when retailing is a monopoly. This suggests that returns policies serve both to manage competition and mitigate demand uncertainty.|
|Source Title:||Marketing Science|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Dec 5, 2017
WEB OF SCIENCETM
checked on Nov 16, 2017
checked on Dec 10, 2017
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.