RETURN IT OR NOT?
HOW INFORMED E-COMMERCE CUSTOMERS ARE IN RELATION TO ENVIRONMENTAL EFFECTS OF E-PURCHASE RETURNS?
AUTHOR: KUWA, DAVID AUTHOR: AHMED, SAJJAD
School of Business, Society & Engineering
Course: BachelorThesis in Business Administration
Course code: FOA 230
15 cr
Supervisor: DAVID FREUND
2 Acknowledgement
This thesis would not have been possible without the valuable guidance from our Supervisor. We also wish to specially acknowledge the members of the focus groups for taking part in this study. To our families, thank you for being patient with us while writing this thesis.
3 ABSTRACT
ABSTRACT
Date: 2020 June 08
Level: Bachelor thesis in Business Administration, 15 cr
Institution: School of Business, Society and Engineering, Mälardalen University
Authors: David Kuwa Sajjad Ahmed
(87/01/12) (88/01/03)
Title: Return it or not?
How informed e-commerce customers are in relation to environmental effects caused by e-purchase returns.
Tutor: DAVID FREUND
Keywords: E-commerce, Returns and return policies, Customer behaviour, Environmental factors
Research
question: How informed are e-commerce customers regarding negative environmental impacts of e-commerce returned goods?
Aim & Purpose: To understand the environmental effects caused by E-commerce purchase returns and research on how informed the E-commerce consumers in Sweden are on these effects in subject to their buying and returning behaviour.
Method: Qualitative research method approach is used where focus groups are organized and discuss with the help of semi-structured discussion questions
Conclusion: Online buyers concentrate more on the return policy a company gives, and many will utilize the free policies to order goods impulsively, just to later make returns of the extra goods that they do not require. They found using e-commerce to return goods to be very beneficial. This is as a result of little knowledge of the environmental effects caused by goods returns. Given ample information by retailers, (which many consumers suggest is necessary), customer could practice more caution in making order returns
4 Table of Contents Table of Contents ... 4 Chapter 1: Introduction ... 6 1.1 Background ... 6 1.2 Problem Discussion ... 7 1.3 Research Aim ... 9 1.4 Research question ... 9 1.5 Delimitations ... 9
Chapter 2: Literature Review ... 10
2.1 Introduction ... 10
2.2 Electronic Commerce ... 10
2.3: Theory and Model ... 11
2.3.1: Theory of Reasoned action ... 11
2.3.2: Three Pillars of Sustainability ... 12
2.4 Consumer Perspective on sustainable E-commerce ... 12
2.5 Concept of E-commerce Returned Goods ... 13
2.6 Environmental and economic Impact of returned Goods in E-commerce Industry ...15
2.6.1 Environmental impact ...15
2.6.2 Economic Impact ... 16
2.7 Sweden and E-commerce ... 16
2.8 Customer experience and awareness ... 17
2.9 Theoretical Framework ... 19 Chapter 3: Methodology ... 19 3.1 Introduction ... 19 3.2 Research philosophy ... 20 3.3 Research Approach ... 21 3.4 Research Design ... 22
5
3.5 Data Collection Method ... 22
3.6 Operationalization of variables………..23
3.7 Focus Group Questions ... 24
Chapter 4: Findings and Analysis ... 26
4.1: Introduction ... 26
4.2: Findings from Focus Groups ... 26
4.3: Analysis of Findings ... 35
4.3.1: Application of model ... 35
4.3.2: Comparison with past research ... 35
Chapter 5 Conclusion and Recommendations... 39
5.1 Conclusion ... 39
5.2 Recommendations ... 40
5.2.1 Sustainable Returns Policy ... 40
5.2.2 Recycling Packaging ... 40
5.3 Limitations... 40
5.4 Suggestions for further research ... 41
6
Chapter 1: Introduction
1.1 Background
One of the quickest developing ventures today is Electronic Commerce. The development of the web has made a powerful electronic commercial center (Singh, 2002). The advances utilized are easy to understand and are customer based (Popescu, 2015). Retailers are striving to build lasting relationships with consumers as end users. With increased convenience created by the E-commerce industry, where consumers can purchase goods from the comfort of their homes and workplaces, goods are delivered at the consumers’ convenience. Hence electronic commerce is helping save customers time. Consumers are also able to compare prices from various websites all over the world (Popescu, 2015).
Further, E-commerce has globally affected the entire population as well as industries by changing the mode of business. The online productive outflow of goods for the sake of online services affects the business dealings of the organisations. Globally, there has been a rapid increase in the number of electronic commerce businesses (Linzbach, 2019) .
Research on environmental impacts of online business and e-business is still in its earliest stages. However, in recent times, there has been a rise in such researches. Recently, positive natural outcomes of online business have commonly been unplanned. An essential inquiry that must be tended to is, How would we improve our comprehension and the board of the natural impacts of online business? (Fichter, 2002). Some major concerns of the new e-commerce business models are the energy and packaging materials used by the logistics networks for product fulfilment and delivery (Matthews et al, 2001). The result of the returns is that these materials and the energy consumed in the initial packaging and transportation goes to waste. This is a very serious environmental issue (Matthews et al, 2001).
Administration of online commerce and business retail has increased the business value of industries. Industries offer sustainable services to facilitate their development and offer increased services to enhance their sales (Kim, 2020). However, the lower approach of product return somehow affects the business administration in dealing with productive outflow. The prolonged administration of goods returned by customers affects the dealings and decreases the morality of industries (Kim, 2020). The rise in goods returns not only affects the dealings of the industries socially but it also negatively affects the environment and economic status of the
7 organisation to an extended value. This paper therefore seeks to research customer buying responsibility and how informed customers are regarding the environmental effects caused by the unnecessary returning goods behaviour.
1.2 Problem Discussion
E-commerce offers positive environmental effects, for example, greenhouse gas emission reduction due to reduced travelling needs by individual consumers, and other energy use in traditional brick-and-mortar shops (Chueamuangphan, et al. 2020. However, online shopping is not entirely free from negative environmental impacts.
The development of internet business has prompted an expansion in orders conveyed to clients bringing about high emissions of carbon dioxide and significantly more noteworthy traffic congestion in urban areas (Oláh et al, 2019). The internet business delivery of B2C products represents 61% of the present absolute web based business shipments, which has prompted expanding environmental pollution (Oláh et al, 2019).
Studies have shown there is need to adjust and build information for supportable online business. This is because, as E-commerce is increasingly rapidly, so is the number of returned goods. Around three billion packages are returned to the retailers per year within the EU alone. (Cullinane, 2018). The global reports administer that about 12% of products returned are casual outfits, 15-20% are electronic goods and 35% are high fashionable appraisals (Gong & Ye, 2019). Consumers tend to systematically over-order, to find for example the right sizes and colours of the products they would prefer, later returning all but a few. (Cullinane, 2018). With this increased return behaviour, the costs encountered are enormous as the packages need to be checked, processed and repackaged before becoming available for another sale (Cullinane, 2018)
This thesis deals with the negative impact of E-commerce returned goods to the environment. In an Internet direct sales supply chain, the customers buy directly from the manufacturer or the retailer sacrificing the benefit of physical inspection of the product. This improves the probability that clients will have some dissatisfaction with the item and might want to send it back (Punekar and Gopal, 2016). The authors of this thesis paper find this is a big challenge to the environment in the E-commerce sector that ought to be addressed.
8 Customer returns prevail in the retailing industry. Accepting returns of products that do not meet the customer's taste or expectations is an efficient way to retain customer loyalty and maintain customer satisfaction (Yang et al, 2017).
Returns can be a major challenge for retailers. There is the expense of processing returns, as far as staff and assets, and there is additionally the hazard that things returned may not be effectively resold. Customer returns policies can stand out for customers and decidedly impact on their purchase decision. However it is expensive to deal with the returned items. It is evaluated that U.S. organizations spend over 200 billion dollar every year on managing item returns. (Yang et al, 2017). The U.S. electronics industry alone spends about 14 billion a year on repackaging, restocking, and reselling returned products (Yang et al, 2017).
With many E-commerce retailers emerging and raising competition, their return policies tend to be lenient, in an effort to attract and build loyalty with more customers, while working hard to keep the already existing ones. This according to the UK’s Barclaycard Research, have enabled an emergence of ‘serial returners. These are online shoppers who habitually over order and take advantage of free returns (Yang et al, 2017).
Fang et al. (2019) have stated that 67% of customers or shoppers view the criteria for returning the product options. In dealing with the returning products, companies or industries charge the vendors more rather than initial used services to monitor the balance for the products. As a result, retailers experience huge losses in dealings with the product services. Industries are substituting the vendors to administer the dealing for the products. Consequently, it affects the social relationship of retailers with the organisation (Fang et al. 2019).
One reason that returning goods is so popular with customers is that the procedure itself is a 'Big black box', where individuals do not have any knowledge of what the returns processes involves, reason being that the costs are hidden (Cullinane, 2018). Consumers tend to think of the benefits, but not the consequences such behaviour could result in.
Retailers are exposed to both challenges and opportunities as online retailing gets more popular by day (Punekar and Gopal, 2016). One of the major challenges encountered by ecommerce businesses is the rate of returns experienced in the recent past. Most E-commerce retailers do not avail information on how returns affect their businesses and sustainability at large.
9 (Cullinane, 2018). They believe that if consumers are required to help to cover the actual costs, they will simply switch brands instead (Cullinane, 2018).
1.3 Research Aim & Purpose
This study aims to critically analyse the extent to which E-commerce consumers in sweden understand the negative environmental effects of returning goods using E-commerce.
1.4 Research question
Based on the above discussed problem, this paper seeks to understand the following;
How informed are e-commerce customers regarding the negative environmental impacts of e-commerce returned goods?
1.5 Delimitations
The authors acknowledge that E-commerce and E-commerce returns are wide topics that could be addressed in many different ways. This study only focussed on finding out how informed consumers are on environmental challenges and effects encountered by the growing products return, only in the customers perception. The research will not focus or rather take the e-commerce retailers perception. The authors further recognize that this study can be observed in how male and female customers perceive this particular subject, of which this study will not focus on.
10
Chapter 2: Literature Review
2.1 Introduction
In this section, a deep insight of the E-commerce industry is provided with customers’ perspective over this industry. It will also depict the effects of returned goods to the environment within this industry.
2.2 Electronic Commerce
According to Rana Tassabehji, there has been and continues to be much publicity and discussion about Electronic commerce. Tassabehji (2003) further defines E-commerce as sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks. Electronic commerce has existed for more than 40 years beginning from the electronic transmission of messages during the berlin airlift in 1948. (International journal of commerce) Internet retailing has made incredible opportunities as well as challenges for retailers. (Punekar & Gopal, 2016).
In the era of internet and cashless transactions, E-commerce is playing a huge role to satisfy customers' demands. It can occur in four ways that is Business to Business, Business to customers, customers to customers or customers to business. In the fast pacing world, e-commerce has become the sole option for many consumers. The online sites of E-e-commerce like eBay and Amazon have raised this industry largely. Martínez-Navarro et al. (2019) have expressed that in 2007, this industry had developed by 5.1%, and in 2019 it was raised to 16%. This industry however poses great challenges to the environment. Packaging waste from e-commerce businesses is one of such concerns. A common e-e-commerce business package may use upto seven sorts of packaging materials: paper charges, envelopes, cardboard box, plastic sacks, woven packs, tape, and cradle materials (bubble wrap, styrofoam). (Chueamuangphan, 2020).
Although E-commerce returns pose a major challenge in terms of logistics and more so in the social sustainability factors, most researchers have chosen to focus only on the e-commerce retailers return policies. According to Hjort and Lantz (2016) research on returns policies is scarce and inconclusive.
11 A past research study to empirically analyse and describe the effects of returns policies on consumer behaviour and the moderating effects of the policies on profitability, Hjort and Lantz, (2016) have demonstrated that with a lenient returns policy, repeat customers create an essentially higher commitment for each request while returners and customers who appreciate free returns produce a fundamentally lower contribution per order. This then brings about the challenge since according to the study, it shows that returns policies that are free of charge do not necessarily benefit retailers in terms of long-term profitability (Hjort and Lantz, 2016).
2.3: Theory and Model
2.3.1: Theory of Reasoned action
Han (2019) has pointed out that Theory of Reasoned action (figure 2.1) suggests that consumers check all reviews and other skills before managing anything in agreement of a transaction. The Theory of Reasoned Action assumes that individuals behave in a rational manner in order to achieve favorable results, and to avoid disappointing others by confounding their expectations. According to this theory people’s intention to behave in a certain manner is a predecessor variable of their actual behaviour. Moreover, the intention of the individual to behave in a certain way is determined by the attitude toward that behaviour and by the subjective norms. (Macovei, 2015).
Figure 2.1: Theory of Reasoned Action
12 2.3.2: Three Pillars of Sustainability
Purvis et al (2019) states that the three pillars of sustainability (figure 2.2) are social, environmental, and economic. It is the combination of these three pillars that leads to economic growth. Organisations are required to consider the social, environmental, and economic impact of their operations on their stakeholders. Positive social, environmental, and economic impact can lead to an improvement and growth in the organisation. However, negative social, environmental, and economic impact can have a detrimental impact and lower the performance of the organisation. It is hence of utmost importance that organisations ensure that their business activities have a positive impact on the society, the environment and on the economy. This can help the organisation grow (Purvis et al, 2019).
Figure 2.2: Pillars of sustainability
Source: Purvis et al (2019)
2.4 Consumer Perspective on sustainable E-commerce
Customers have enjoyed an easy life through the invention of E-commerce as they can get everything, they want by touching mobile screens. It has become further important currently as life has become busier than before. Consumers do not have time to visit shops or malls to buy any small thing they want. Apart from that, exciting offers, gifts on good quality goods are becoming successful to catch customer’s minds. On the other hand, this industry also saves time for customers. Gong & Ye (2019) have mentioned that there is a global rise of customers to 46% shopping from this industry. Ecommerce has changed the perspective of shopping making it easy for consumers. Hence, customers are happy with this trend of shopping through
13 online. The 24-hour service of online stores has made for a better experience to shoppers. In that context, many stores are joining the industry to have profit.
It can be understood from perspectives of customers that there is a balance between negative and positive aspects. Some customers often think that traditional ways of shopping are better than online shopping. However, as mentioned by Qiao et al. (2019) have opined that added benefits are there for customers in the Ecommerce industry; such as they are able to find out different goods and they can compare the prices of the same product in different online stores. Hansen & Branö (2020) have pointed out that 90% consumers can be able to shop from those sites, which can provide them with personalized experience. Customers tend to focus on their interests rather than providing or having knowledge about this industry. Hence, it is quite inevitable that customers will not be able to get proper information about the impacts of their activity in this case. This can basically conclude that customers tend to have very minimal information regarding the environmental effects that arises in the e-commerce industry (Hansen & Branö, 2020).
The eventuality leading to the return of goods in e-commerce can harm the market leading to a negative impact to the environment. Emergence of digital platforms has also taken a leap to involve customers in online shopping. Seewald et al. (2019) have narrated that Fast service; plenty of options have brought the e-commerce industry to the forefront of business due to current demand in the market and customers. It has been seen that e-commerce has created three polls of customers, one who shops from this industry, as they have no other options to take out time from the busy schedule. There is another group of customers, who wants to follow the trend; lastly, customers who do not have any interest in E-commerce. In that case, it can be understood that there is less knowledge about returning goods and its impact on this industry. Hence, it is important for this industry to gather suitable products with good quality, so it does not need to be returned (Seewald et al. 2019).
2.5 Concept of E-commerce Returned Goods
In the era of modern technology and busy schedules, customers are moving towards the e-commerce industry to enjoy all benefits provided to them. However, if one starts to think practically, when one buys a good, that person needs to cross check each aspect related to that product. Online stores provide detailed descriptions of a good; however, it can be a customer's
14 problem or problem of authority that the e-commerce industry has a huge number of returned goods. Kim (2020) has opined that almost 30% goods in e-commerce industry are being returned as compared to brick and mortar stores, which has only 8.89% of returned goods. Hence, it can be seen that it is a huge difference, which is resulting from lack of quality, delivery issue or delivery of wrong product (Kim, 2020).
Reasons for a product return could result from many reasons, for example damaged goods, failed or wrong orders delivered, to customers' change of heart after maybe finding the product elsewhere at a cheaper price among others. It has been seen that this can be the reason that customers tend to change products more often. Son et al. (2019) have said that a survey has shown that 95% of consumers visit the page of return policy before making any shopping. The online stores mostly offer a free return policy to their customers. In that case, it can be understood that a huge number of returns are made within this industry. It has been seen earlier that customers demand for a seamless shopping experience in the online stores without any extra hassle or costs. However, as per human psychology, when a consumer buys a product, it demands to get the desired one, sometimes the stores are unable to deliver the exact product shown in the shopping platform. It can harm the quality of the product along with customer experience (Son et al. 2019).
Loss of customers can cause problems for this industry and it is increasing day by day. Some customers receive wrong delivery at the second time of return, so it can lead to a huge extent at some point of time. It can affect profit rate and other factors related to business. Linzbach et al. (2019) have stated that 60% of expensive goods are being returned in the e-commerce industry while only 8 to 10% goods are returned in Brick and mortar shops. According to Sharon Cullinane (2018), a new pattern in consumer behaviour has become discernible with the advent of e-commerce: customers tend to systematically over-order. To find the correct size or perfect colour of an item, they request a lot a larger number of things than they plan to buy, returning all except a couple that they intended or are able to buy.
Online shopping sector gives consumers an opportunity to return the product without any delivery cost. Additionally, there are chances of high return as customers want to have personalized shopping experience with easy-return policy. On the contrary, customers never want to or they do not have the option to change or return goods in Brick and mortar stores. In that case, certain customers tend to return products as they buy various kinds of product at a
15 time. In that case, it becomes inevitable that customers will return goods. On the other hand, Tjiongan (2019) has commented that statistics from the last 3 years have shown that 89% of customers have returned the goods they have bought online.
2.6 Environmental and economic Impact of returned Goods in E-commerce Industry
2.6.1 Environmental impact
The packaging of online delivery is not sustainable for the environment; in that case excessive return of products can harm the environment. It has been found out that customers do not take any actions to manage this situation. They do not have any idea regarding this policy as they are finding their comfort to this process only (Purvis et al, 2019).
Several categories of environmental effects of e-commerce can be distinguished. (Fichter, 2002). E-commerce presupposes the availability of an Information, Communication and Technology (ICT) infrastructure (PCs, mobile phones, servers, routers, etc.). The production and use of the ICT infrastructure cause material flows, use hazardous substances, and lead to energy consumption and electronic waste. (Fichter, 2002). Further E-commerce is transforming economic processes and markets.
Environmental sustainability occurs when processes, systems and activities reduce the environmental impact of an organization's facilities, products, and operations. (Frontstream.com). Environmental sustainability seeks to improve human welfare by protecting the sources of raw materials used for human needs and ensuring that the sinks for human wastes are not exceeded, in order to prevent harm to humans (Moldan et al. 2012). The article further identifies environmental sustainability as a set of constraints on the four major activities regulating the scales of the human financial subsystem: the utilization of sustainable and non-renewable resources on the source side, and pollution and waste absorption on the sink side. (Moldan et al. 2012).
E-markets, virtual business systems, and the digitisation of goods and services involve natural results, for instance, for resource efficiency, transportation, and land use. These impacts might be harming to the environment (Fichter, 2002). E-business causes basic difference in the economy and influences ways of life and utilization designs, which, thus, indirectly affects the environment. If the rate of efficiency improvements (e.g., the miniaturization of devices) is
16 lower than the growth rate of consumption (e.g., more devices used), we have the so-called rebound effect (Fichter, 2002).
2.6.2 Economic Impact
Online shopping comes hand in hand with online transactions, and online stores of the e-commerce industry offer a free return policy to its consumers. It can be explained as such while a customer will buy a product from an online store, that customer needs to pay the service charge, product price and delivery charge. Sometimes, online stores provide orders without any delivery charge if it reaches a certain amount of purchase price. However, the free return policy comes with the advantage that customers can return the product but will not take any extra cost to the customers. In this context, if a customer buys one product from an online store, meanwhile other four customers return the product then it will definitely bring an economic crisis to the industry (Kakalejčík et al, 2019), Coelho et al. (2020).
Kakalejčík et al. (2019) have stated that to a broader extent, e-commerce under business to business can cause another economic crisis to this industry in returned goods. If the return increases rapidly, it will definitely cause an economic fall to industry, as it is not only about the product there is certain operational cost (Kakalejčík et al. 2019).
On the other hand, there are some customers, who buy products only to return them. 41% of consumers of e-commerce have such a tendency. Apart from that, it has been found out that there is a social gap, which is leading to a negative impact on the economy of the e-commerce industry. Coelho et al. (2020) have stated that it has been found out earlier that almost 83% of expensive goods are returned after its purchase from an online store.
2.7 Sweden and E-commerce
Sweden has a population of 10.1 million among which 94% people use the internet. (scb.se) The ecommerce industry has made 8.24 million Euro in Sweden (ecommerce news). Three major online stores are there; they are IKEA, Nelly and H&M. However, middle-aged consumers of Sweden prefer to order online whereas picking up the order from respective
17 stores. Hansen & Bran (2020) have stated that only 21% goods are being returned in the e-commerce industry, as they prefer self-pick up rather than online delivery at doorstep. Middle-aged people of Swedish community orders footwear and apparel from online stores mostly, after that beauty and health products are there in the second most popular thing to be ordered. They are not likely to buy electronic goods from online store. Lorca et al. (2019) have mentioned that there are 83% of Swedish customers demand for free returns and 74% from middle aged customers ask for delivery within 2 to 3 days.
In a country, where 83% of consumers are asking for free returns from the e-commerce industry, it is quite understood that they are aware of its negative impact on environment of the E-commerce industry (Kim, 2020).
They are not much dependent on online business and online purchasing, so they are not that concerned about profit and loss in the E-commerce industry. If the tendency of global customers can be seen two among three customers check the return policy before making a final order. Lorca et al. (2019) have commented that Sweden is not an exception in this, especially people between the ages of 20 to 35. It has been found out earlier that the e-commerce industry has divided the consumers in three sectors, among which one sector is still there, that believes in traditional shopping from Brick and mortar stores (Lorca et al. 2019).
In that case, it seems that the consumer base does not have knowledge about the negative influence of free return in the e-commerce industry. However, another conclusion can be made in this topic that they know about it, whereas they do not want to fall as a victim in this process. Consumers demand to have full access to everything they want to have in this market and do not want to get any loss in the E-commerce industry (Lorca et al. 2019).
2.8 Customer experience and awareness
Customer Experience is characterised as the subjective affirmation or observation that follows from stimulated motivation of a customer who watches or takes an interest in an event (Chen and Lin, 2015) Such affirmation or recognition therefore improves the value of goods and services (Chen & Lin, 2015).
18 Sustainability and Customer Experience have been broadly grown freely in numerous countries by numerous researchers. Today, another connection is rising between the two, yet it does not have a theoretical foundation. (Signori et al, 2019). Every customer plays important roles as a user of the product, the payer, and the buyer. (Muthu,2018) All these activities are the part of the purchasing process of decision making regarding a purchase (Muthu, 2018).
Our goal is to examine under what circumstances information regarding negative effects to the environment would be beneficial to minimize unnecessary returns, at the same time enhancing customer experience in the e-commerce industry. We believe that lack of customers’ awareness about these negative effects is a major limiting factor in the ability to respond to any initiative aimed at curbing them. Stakeholders tend to be the biggest rewarders of firms that practice high sustainability in terms of investment and consumption of their products thus the companies ought to perform better while competing in the market (Gong et al, 2019).
Previous research suggests that firms engage in profit maximizing sustainable practices, and “do well by doing good.” At the heart of these views is the central role of stakeholder theory (Gong et al, 2019). Stakeholder theory suggests firms increasingly interpret sustainability in terms of the interests of various groups of stakeholders (e.g. consumers, employees, investors, communities, government, environment, etc.), and their sustainability efforts are influenced by the strong belief that these stakeholder groups will favour firms with a good sustainability performance. (Gong et al. 2019). Consumer awareness influences a firm's sales and its financial performance. Some of the past research suggests that consumers are willing to pay a higher price for the products of firms with more sustainable engagement; and other research suggests that consumers are more likely to purchase goods from firms that are more socially responsible (Gong et al. 2019).
Customer awareness is a part of a company’s marketing & communications plan. It is a process that helps an entrepreneur educate customers about his/her company, its performances and the products or services his/her company delivers. A well-designed awareness program ensures better customer engagement and protects consumer welfare (Gong et al. 2019).
19 2.9 Theoretical Framework
The theoretical framework (figure 3) has been developed by combining the theory of reasoned action (figure 1) and the three pillars of sustainability (figure 2). The variables mentioned in figure 3 are going to be used in this study.
Figure 2.3: Theoretical Framework
→
Source: Adapted from Fishbein & Ajzen (1975), Purvis et al (2019)
Chapter 3: Methodology
3.1 Introduction
Research methodology deals with theoretical and systematic approaches to add the findings of the research aspects. The systematic and theoretical variations are used in assisting the primary and secondary data that will be required for the research integrations (Saunders et al. 2015).
Factors affecting customers use of E-commerce and their understanding of the negative environmental effects of returning
goods using E-commerce
Behavioral Beliefs Attitude towards behaviour
Behavioural intention Motivation to Comply Environmental Sustainability
20 This chapter plays a remarkable role in addressing specific tools and research literature for collecting relevant data. To fulfil the criteria of the research, methodological designs and tools area assisted to evolve the research topics. The methodology will focus on relevant techniques and tools that will increase the effectiveness and services in assisting the data collection for the research topic. Relevant philosophy, approach guidance and secondary sources are used to gather additional information. As a result, the relevant methodological information will increase the approach of research in assisting information for the relevant cases. Therefore, for considering the priorities for the research tools specific research methodology needs to be administered to improve the efficiencies of the research aspects.
3.2 Research philosophy
This study’s research philosophy was interpretivism as the researcher wanted to understand the views of the participants in relation to the research question. The researcher wanted to develop a detailed understanding of how well informed the participants were regarding the impact of e-commerce on returning goods that were purchased online. Bryman and Bell (2015) agree that interpretivism is suitable when the researcher aims to understand and analyse the viewpoints of the participants.
This study targets people within the age group of 22 to 55 who according to www.ec.europa.eu falls among the most online shoppers. They are also more independent economically and hence strong purchasing power. According to Bryman and Bell (2015), the focus group method is a form of group questioning on a particular fairly tightly defined topic. A focus group contains an element of the focused interview in which the interviewees are selected because they are known to have been involved in a particular situation and are asked about the involvement. (Bryman & Bell, 2015) These people were therefore selected for having a certain experience and could be interviewed in a relatively unstructured way about the shopping online experience. This according to Bryman and Bell (2015) suits a focus group criteria.
Qualitative description is necessary when studying individuals and social situations that are distinctive, unknown or have become stereotyped. (Rowles & Reinharz, 1988). One advantage of a focus group is that it allows group synergy, where a participant can draw from another or members can collectively brainstorm, giving room to more opinions. (Berg, 1988)
21 The researchers conducted three focus groups discussions. Our goal was to recruit atleast ten participants per each group, but due to time limit and the covid-19 pandemic challenges, the meetings could only be held online, resulting in some participants to withdraw citing difficulties with online technology meetings. The researchers organized each focus group based on age group, as the goal was to compare two age groups who are active in online buying, i.e. 22-40 years and 41-55years. All the participants were picked randomly.
A total of 18 participants took part in the three focus groups. The first focus group had eight participants (aged 22-40) and was held online through a group telephone conversation on Monday 19th may 2020 at 14:00. The second focus group had seven participants (aged 41-55). It was held online through group telephone call on Monday 19th may 2020 at 21:00. The third focus group was held on sunday 18th may 2020 at 13:00and was through a zoom meeting. There were three participants present.
To initiate recruitment, the researcher personally outreached to contacts by way of telephone calls, messaging, and e-mails to request for participation and explain the purpose of the study. A written request with ethical information was presented before the start of every meeting. After the conduct of the focus groups, the researchers collated all of the information given by the participants, compared, and analysed it. The three groups will be referred to as Focus Group 1 with eight participants of ages 22-40 and Focus group 2 with seven participants of ages 41-55 and Focus group 3 with three participants aged 22-40.
3.3 Research Approach
Inductive approach was viewed as the most favourable for this research work since the approach demonstrates the relevant theories and probable observations for the research aspects. Relevant observations and services could be cultured in order to improve the dealings of the research aspects. Researchers prefer to assist information along with resemblances, patterns and regularities that are associated with the research work. Weber (2017) has narrated that as a result, an inductive approach deals with observation guidance and theories for framing the research area.
22 3.4 Research Design
Research designing is the concepts that assist the overall strategy of the research topic in a synchronised way that assist additional documentation and logical explanations for the research aspects. However, three types of research design can be used in framing the research topics. These are exploratory, descriptive and explanatory designs. The three strategies follow the concepts of congruous and logical understanding to deal with the research aspects. Exploratory designing deals with the impediment aspect of the research to increase the current study of the research (Myers et al. 2016). It deals with the frame of grounded theories to administer the services in assisting additional information. As a result, relevant questions need to be approached to evaluate the possible understanding of the research concepts. Explanatory concepts figure out the solutions configuring the research questions with deductive conclusions. Descriptive design is used in the research as it establishes conclusive evidence for the observations and behaviour that improve the dealings of the organisation in research aspects. As a result, a descriptive research design was used by the researcher to frame the research topic required to figure out the credentials of the research. Despite the additional information, logical explanations are administered accurately to establish concrete evidence in assisting the research frame (Kumar, 2019). Assisting the population, situational services are some of the concepts that need to be approached to increase the efficiency of the research work based on the study of the descriptive approach.
3.5 Data Collection Method
Given the nature of the study purpose, the focus of this study is on exploring how informed e-commerce customers are on the negative effects caused by returned goods. The study of Online returning behaviour can be considered a relatively evolving phenomenon, and many researchers have shown that really e-commerce customers tend to focus more on the free return policies hence influencing their return behaviour. The authors of this paper therefore deemed important to assess how to approach this research phenomenon.
A qualitative and interpretive approach was deemed appropriate. The researchers pre-designed set of questions with the aid and influence of past research papers on e-commerce return behaviour and policies, that were conducted on three different focus groups with persons of different ages. The focus group technique is a method of interviewing that involves more than
23 one, usually at least four, interviewees. (Brymann & Bell, 2015) essentially it is a group interview.
According to Bryman and Bell (2015), the idea of a focus group is that people who are known to have had a certain experience could be interviewed in a relatively unstructured way about that experience. The selected members of our focus groups were chosen based on the belief of their adequate online shopping experience. One merit of the focus groups in relation to our study, is the fact that a focus group offers the researcher the opportunity to study the ways in which individuals collectively make sense of a phenomenon and construct meanings around it. The focus groups main objective was to seek their understanding of the process of returning goods in detail, taking in consideration free return policies that are usually administered by many online retailers, so as to help the authors of this paper measure the focus groups participants knowledge on the effects caused by e-commerce returned goods
This objective was attained through the application of the pre-designed questions.
All the focus group sessions began with an introduction where the moderators of the day thanked the people for their time and introduce themselves. Later the moderators explained the goals of the research and briefly outline the reasons for recording, taking into account all the ethical issues relating to data handling.
In spite of relevant findings, a literature framework is also administered to frame out the services for the research topic. Later the researchers evaluated the findings from the discussions and analysed them accordingly.
3.6 Operationalization of Variables
This study focuses on age of the focus group participants as the dependent variable.
With a guide from one of the pillars of sustainability -The environmental factor- the authors apply the customer experience awareness theory and the theory of reasoned action to measure or determine the focus group participants knowledge on environmental effects caused by returned goods in the e-commerce industry.
24
Own figure; Operationalization of variables
3.7 Focus Group Questions
This study focused on the age of the focus group participants. The focus group questions were closed aligned with the theoretical framework (figure 2.3 in chapter 2). Figure 3.1 shows the focus group questions, the model that they refer to and academic underpinning. Hence, the focus group questions have been carefully devised to meet the aim and answer this study’s research question.
Figure 3.1: Focus Group Questions and their academic underpinning
Focus Group Questions Model Academic
Underpinning How often do you purchase goods
online?
Theory of Reasoned action Fishbein & Ajzen (1975)
Have you ever thought of what is involved in the returning goods procedure? If Yes what?
Environmental Sustainability
Purvis et al (2019)
What are the benefits of using e-commerce to return goods?
Environmental Sustainability
Purvis et al (2019)
What ae the challenges you face in returning goods using e-commerce?
Environmental Sustainability
Purvis et al (2019)
Are you motivated to use e-commerce to return goods?
Theory of Reasoned action Fishbein & Ajzen (1975)
PARTICIPANTS AGE KNOWLEDGE AND AWARENESS OF
THE ENVIRONMENTAL EFFECTS CAUSED BY RETURNED GOODS
REASONED ACTION
CUSTOMER EXPERIENCE AWARENESS
25 In your opinion, does returning
goods via e-commerce have a positive or negative impact on the environment?
Environmental Sustainability
Purvis et al (2019)
Would you be using e-commerce to return goods in the future?
Theory of Reasoned action Environmental
Sustainability
Fishbein & Ajzen (1975)
Purvis et al (2019) What do you look for (factors you
consider) before making an online order or purchase?
Theory of Reasoned action Fishbein & Ajzen (1975)
Have you ever over ordered products intentionally or unintentionally? If yes, what factors do you consider while adding another product in your basket which you are less or least interested in?
Theory of Reasoned action Environmental
Sustainability
Fishbein & Ajzen (1975)
Purvis et al (2019)
Does your favorite brand offer free shipping and returns? If yes, how would your buying behavior be affected if additional charges will be implemented on shipping and returns?
Environmental Sustainability
Purvis et al (2019)
What initiatives would you take to buy efficiently online if given brief awareness before you check out by the company about
environmental issues taking place because of high ratio of returning products?
Theory of Reasoned action Environmental
Sustainability
Fishbein & Ajzen (1975)
26
Chapter 4: Findings and Analysis
4.1: Introduction
This chapter examines the findings from the focus groups and analyses these findings in light of academic frameworks presented in chapter 2 and with past academic research.
4.2: Findings from Focus Groups
Three focus groups were carried out. Information about the participants in the focus group is presented in figure 4.1, 4.2 and 4.3.
Figure 4.1: Focus Group 1
Participants Occupation Age
Participant A Student 23
Participant B Sales Assistant 35
Participant C Customer Service assistant 32
Participant D Administrator 29
Participant E Admin assistant 26
Participant F Student 25
Participant G Student 24
27 Figure 4.2: Focus Group 2
Participants Occupation Age
Participant A Manager 43 Participant B Manager 46 Participant C Advisor 45 Participant D Nurse 42 Participant E Officer 47 Participant F Unemployed 50 Participant G Unemployed 51
Figure 4.3: Focus Group
Participants Occupation Age
Participant A Student 24
Participant B Student 23
Participant C Student 24
4.2.1: How often do you purchase goods online?
The findings from focus group 1 (conducted with participants aged 22-40) showed that all of the eight participants bought goods online at least 2-3 times in a month.
The findings from focus group 2 (conducted with participants aged 41-55) reveal that four of the participants purchase goods online at least once a month whilst three of the participants purchase goods on average one every two months.
The findings from Focus group 3 (with participants aged 22-40) showed that two of the participants were not regular online buyers, while 1 of them indicated that they make all theirs purchases from food, clothing and hair products online.
28 4.2.2: Have you ever thought of what is involved in the returning goods procedure? If Yes what?
The findings from focus group 1 (conducted with participants aged 22-40) showed that all eight participants were fully aware of the returning goods procedure. They carefully read the organisation’s returning goods policy and procedure.
Participant A stated:
‘I read the return goods terms and conditions when I buy goods online.’
The findings from focus group 2 (conducted with participants aged 41-55) showed that five of the participants were confident about the returning goods procedures. However, two of the participants were unsure about the returning goods procedure.
Participant C stated:
‘I carefully read the returning goods procedure when I purchase goods online.’ Participant D stated:
‘I know how to buy the goods. But when it comes to returns, I am a bit unsure. My daughter follows the returning goods procedure for me, whenever I have to return goods.’
The findings from the focus Group 3 (with participants aged 22-40) indicated that all participants were cautious to look out to the return policies from e-retailers website but have never actually thought what it entails on the costs involved for the company to facilitate a return. 4.2.3: What are the benefits of using e-commerce to return goods?
The findings from focus group 1 (conducted with participants aged 22-40) reveals that three partcipants had no experience in returns while five of the participants stated that they could easily return goods using e-commerce. It saved them the hassle of going physically to a store and standing in long queues. Hence, the participants found returning goods via e-commerce to be very convenient.
29 Participant B stated:
‘I simply follow the company’s returns goods procedure. It is easy to follow. It saves me time and is very convenient.’
The findings from focus group 2 (conducted with participants aged 41-55) showed that all seven of the participants found returning goods via e-commerce to be convenient.
Participant A stated:
‘I have arthritis in my knees and find it difficult to walk for long distances. I can return goods using e-commerce. It saves me the trouble of walking for the long distance in the physical store.’
The findings from Focus group 3 (with participants aged 22-40) all the three participants indicated that returning goods through the online purchase was easier and would save a lot of time. No questions will be asked, and one was guaranteed a total money refund.
4.2.4: What are the challenges you face in returning goods using e-commerce?
The findings from focus group 1 (conducted with participants aged 22-40) revealed that the challenges faced by the participants included the long wait to get their money refunded or getting the replacement product.
Participant C stated:
‘I enjoy returning goods using e-commerce. But some brands take up to 14 days to return my money. I frequently purchase from Amazon and it refunds my money quickly.’
The findings from focus group 2 (conducted with participants aged 41-55) are that the challenged experienced by the participants in returning goods using e-commerce was that some times, they found it difficult to use e-commerce and got a bit confused as to what they had to do next to return the goods.
Participant D stated:
‘I need to improve my IT skills. Sometimes I get stuck when I am returning goods. So I ask my friend to assist me.’
30 The findings from focus group 3 (with participants aged 22-40) indicated the only challenge was that money refund was not instant, and sometimes, even if guaranteed, it would take upto 14 days to get the money back.
4.2.5: Are you motivated to use e-commerce to return goods?
The findings from focus group 1 (conducted with participants aged 22-40) all the participants agreed that using e-commerce to return goods had changed their lives. It had made their lives a lot easier. Hence, it can be said that the participants were willing to and were motivated to return their goods using e-commerce.
The findings from focus group 2 (conducted with participants aged 41-55) revealed that three of the participants were very enthusiastic whilst four of the participants were a bit concerned about using e-commerce to return goods. Their concerns related to whether they had followed the return goods procedure correctly.
The findings from focus group 3 (conducted with participants aged 22-40) revealed that two of the participants would avoid buying goods that they were unsure about, and that therefore meant minimal returns. One of them indicated that returning could not be avoided as they would occasionally discover better and attractive products at cheaper prices.
4.2.6: In your opinion, does returning goods via e-commerce have a positive or negative impact on the environment?
The findings from focus group 1 (conducted with participants aged 22-40) reveals mixed opinions. Whilst 5 of the participants stated that returning goods via e-commerce has a positive impact on the environment, 3 of the participants stated that it had a negative impact. These findings highlight that companies need to take proactive measures to ensuring that their e-commerce activities protect the natural environment and are sustainable.
Participant A stated:
‘ I find e-commerce more sustainable than purchasing goods from a physical store.’
The findings from focus group 2 (conducted with participants aged 41-55) shows that 6 of the participants felt that returning goods via e-commerce has a positive impact on the environment, whilst 1 of the participants felt that it had a negative impact on the environment.
31 Participant A stated:
‘I believe that e-commerce has a positive impact on the environment as packaging materials can be recycled.’
Findings from Focus Group 3 (with participants aged 22-40) indicated all the three participants thought there were both positive and negative impacts although they could not point out the negative impacts easily. The reason they said they have never thought about it.
4.2.7: Would you be using e-commerce to return goods in the future?
The findings from focus group 1 (conducted with participants aged 22-40) revealed that all of the eight participants had a positive attitude towards returning goods via e-commerce in the future.
Participant D stated:
‘Yes I definitely would be using e-commerce to return goods in the future.’
The findings from focus group 2 (conducted with participants aged 41-55) indicated that all of the seven participants would be using e-commerce to return goods in the future.
Participant E stated:
‘I will be using e-commerce to return goods in the future.’
The results from Focus Group 3 showed that all three participants would still choose to make online returns when need be to the best of their advantage.
4.2.8: What do you look for (factors you consider) before making an online order or purchase?
The findings from focus group 1 (conducted with participants aged 22-40) revealed that participants examined the product description, product price, other customers views, ease of making payment, ability of the company to meet my expectations, delivery charges, delivery time and popularity of the brand before they place an order online.
32 Participant F stated:
‘ I read the product description and compare prices before I place an order online.’
The findings from focus group 2 (conducted with participants aged 41-55) showed that participants viewed the product picture, product information, compared prices, delivery charges and date of delivery before making an online purchase.
Participant G stated:
‘I carefully view the product picture and its features. I compare the price of the product with other companies. I select the company that I can trust even if the price is a little higher. I also check the delivery date and delivery charges.’
Findings from Focus Group 3 showed that participants critically engaged the return policies, the prices, customer reviews on a product and on the e-retailer and the safety in the mode of paying.
4.2.9: Have you ever over ordered products intentionally or unintentionally? If yes, what factors do you consider while adding another product in your basket which you are less or least interested in?
The findings from focus group 1 (conducted with participants aged 22-40) show that 5 of the participants have intentionally extra products online. The reasons were that the products were being offered at a discount and may not be available at this price in the future. Another reason pointed out was the comfort of trying a new fashion design and colour at home, to choose the best satisfying and return the rest. There were 3 participants who stated that they never added additional products. The reasons were they had a tight budget for shopping. They felt that making extra purchases at times lead to wastage of resources.
Participant A stated:
‘I like shopping online and often buy more that I want.
The findings from focus group 2 (conducted with participants aged 41-55) reveals that 3 of the participants had intentionally and 4 of the participants had unintentionally bought goods online. The reasons stated were fulfillment of needs and attractive discounts online.
33 Participant A stated:
‘I have added another product in my basket when I buy goods online. I thought I needed the product at the time but when I received it, I did not really like it so I returned it. For me, I believe the fulfillment of my needs was the reason I bought the product.’
Focus group 3 (participants aged 22-40) revealed that all the three of the participants had at one time ordered goods unintentionally, citing the major reason as attractive offers of products. 4.2.10: Does your favorite brand offer free shipping and returns? If yes, how would your buying behavior be affected if additional charges will be implemented on shipping and returns?
The findings from focus group 1 (conducted with participants aged 22-40) shows that all eight of the participants believed that some of their favorite brands did offer free shipping returns and returns. If additional charges were imposed, then their buying behaviour would depend on how much those charges were, their need for the product and the price of the product offered by other companies online.
Participant D stated:
‘I use Amazon Prime. I get most goods delivered free. If I need a product that has high shipping costs then I search online for cheaper alternatives.’
The findings from focus group 2 (conducted with participants aged 41-55) shows that all seven of the participants bought goods from companies that gave them free shipping. If additional charges were to be implemented, then their buying behaviour would definitely change. They would have to see how much the charges were, could they afford it, could they buy from elsewhere, did they really need the product.
Participant B stated:
‘Additional shipping charges would affect me and make me look for a cheaper product with another company. However, if I trust a company and know it always gives me quality goods, I might consider paying the additional charges depending on how much they actually are.’
34 The findings from the focus group 3 (participants aged 22-40) indicated that all the three participants would never order from a retailer that does not offer free return policy. Regarding additional charges, all the participants agreed they would consider paying the additional cost if the reason was worth, and if it was their fault (the customer) that the return was being made. 4.2.11: What initiatives would you take to buy efficiently online if given brief awareness before you check out by the company about environmental issues taking place because of high ratio of returning products?
The findings from focus group 1 (conducted with participants aged 22-40) showed that all eight participants were concerned about environmental issues. They all said they would read the environmental issues and contact the company about what they can do to reduce the environmental impact. The participants said that they would try to limit the goods they return. Participant A stated:
‘I would make myself aware of the environmental concerns and do my bit to reduce the harmful impacts on the environment.
The findings from focus group 2 (conducted with participants aged 41-55) stated that 7 of the participants wanted to protect the environment. They said they would engage with the company about what the environmental concerns were and read company policy about what customers could do to lower the concerns.
Participant E stated:
‘I would recycle more and make sure I only buy goods I need.’
The findings from focus group 3 (participants aged 22-40) indicated that all the three participants were environmental conscious and would do anything to protect the environment. However, none had prior knowledge of the negative environmental effects that are caused by goods returned in the e-commerce industry.
35 4.3: Analysis of Findings
4.3.1: Application of model
The application of the theory of reasoned action to this study’s findings shows that people aged 22-40 made more purchases and returned more goods than people aged 41-55. This study’s participants believed in returning goods online and knew the process of doing it. They were motivated to follow the company’s return goods policies and procedures. They had a positive attitude towards returning goods that they purchased online in the future.
The application of the three pillars of sustainability to this study’s findings shows that participants aged 22-40 and 41-55 were very concerned about the environmental impact of returning goods online and they were willing to take steps to reduce the harmful impact of returning goods online on the environment. The participants stated that they would work with the company to lower the impact of returning goods online on the environment.
4.3.2: Comparison with past research
This study’s research question was, ‘How well-informed are e-commerce customers regarding different impacts of ecommerce returned goods?’ The findings from the two focus groups have highlighted that participants aged 22-40 were more well informed about the impacts of e-commerce returned goods than participants aged 41-55. The main reason is that some of the participants aged 41-55 did not have the necessary skills to effectively use e-commerce. These findings are in line with the views of Lian and Yen (2014).
According to Lian and Yen (2014) the knowledge and skills of senior people affects their ability to return goods online. Senior people have lower levels of cognitive abilities such as speed of purchasing goods online. This results in difficulty in returning goods via e-commerce. Senior people search less than younger people when they purchase goods online. Senior people are reluctant in using e-commerce in comparison with younger people. Older people are less familiar with using information technology as compared to younger people. It is hence important for online retailers to provide clear instructions to their customers about how they can return the goods using e-commerce (Lian and Yen, 2014).
This study’s findings have shown that the participants are motivated to return goods using e-commerce. These findings are consistent with Petersen and Kumar (2015). Petersen and Kumar
36 (2015) research has shown that organizations can motivate their customers to return goods using e-commerce by effectively communicating with them. Clear communication about the process of returning goods can make it easier for the customers to return the goods. Guiding customers and keeping the promises made with customers has a positive impact on them returning goods via e-commerce (Petersen and Kumar, 2015).
The findings of this study have highlighted that the participants are concerned about the environmental impacts of returning goods. This study has shown that the return policies of a company have a direct impact on customers. Chapter 2 has reported similar findings. In chapter 2, the views of Hjort and Lantz, (2016) stated that the return policies of an organisation affect repeat consumption behaviour. If an organisation’s return policies are lenient, then this can lead to more customers making repeat purchases from the company. Hence, it is important that organisations design and implement their return goods policies in a manner that it has a positive impact on repeat purchase behavior. This can enhance the profits and market image of the company (Hjort and Lantz, 2016).
This study’s findings has highlighted that the participants aged 22-40 and 41-55 find using e-commerce as convenient for purchasing and returning goods. These findings are consistent with the views of Gong and Ye (2019) as presented in chapter 2. According to Gong and Ye (2019) e-commerce is increasingly being by people to buy and return goods. It has made life easier for customers. It saves customers the time to physically visit the stores and retail outlets. There are exciting and cheaper offers online. Customers can buy goods at any time of the day and from anywhere with online shopping. Hence, it can be said that online retailers need to ensure that they provide customers with convenience and make their shopping experience exciting for them. This can help them in getting more people to purchase goods from them (Gong and Ye, 2019).
The focus groups during the discussion showed positive response towards buying products using e-commerce in the future. It gives them satisfaction of both the product being delivered at home and in this way, they avoid waiting in the que.
These finding are in relevance with the views of Berman and Evans (2010) who state that customers use more reliable way to buy if being given a right product with rewarding services. They further have shown that customers make themselves aware of the return goods policies of online retailers before purchasing any goods from them. These findings are consistent with
37 Linzbach, Inman & Nikolova (2019) as analysed in chapter 2. According to Linzbach, Inman & Nikolova (2019) customers view an organisation’s return goods policy first and it is only when they are satisfied with it that they proceed in making a purchase. A lack of clear returns policy is a key factor that prevents some customers from using and returning goods online. Hence, it is vitally important for organisations to clearly let their customers know about their returns policies and what customers need to do to return goods that they have purchased online (Linzbach, Inman & Nikolova, 2019).
This study’s findings have highlighted that customers have a positive attitude towards returning goods online. These findings are consistent with the views of Tjiongan (2019) (as analysed in chapter 2) who believe that customers do return goods that they have bought online. The ability to return goods that do not meet customers’ expectations is an important aspect of online shopping that attracts customers. Online retailers need to constantly review their returns procedures and strive continuously to improve these to enhance the customers online shopping experience (Tjiongan, 2019).
The findings of this research have shown that this study’s participants have awareness of the returns policies of the retailer. The terms and conditions of the returns procedures are very important for customers. Customers prefer to purchase goods from companies that are committed to effeciently returning goods. Customers are concerned about the environmental impact of returning goods whilst using e-commerce. These findings are consistent with Signori et al (2019) (as analysed in chapter 2) which clearly states that there exists a link between customer experience and the sustainability practices of an organisation. Companies with effective sustainability practices enhance customer experience. However, companies with ineffective sustainability practices have a negative impact on customer experience. Hence it is vital that online retailers strive to ensure that their returning goods practices are sustainable as these can help the retailer in making a positive impact on customer experience (Signori et al, 2019).
This research has shown that customers buying goods online have concerns about the retailers’ sustainability practices in relation to the return of goods. The focus groups participants are willing to take measures to help the online retailer in practising sustainability. Further, emphasis have been put the importance of practising sustainability during return of goods that have been
38 purchased online. These findings are consistent with Gong et al (2019) views (as analysed in chapter 2).
According to Gong et al (2019) online retailers are striving to make their business operations sustainable. They understand that sustainability practices can help them in attracting and retaining customers and can assist them in maximising their profits. Retailers that are actively engaging in sustainability practices are able to satisfy their customers, get their loyalty and also improve their business performance. Customers purchase a larger number of goods from online retailers that are highly sustainable. Hence, it is very important that online retailers make concerted efforts in practising sustainability as doing this can have a highly positive impact on their business performance (Gong et al, 2019).
This study’s findings have shown the participants aged 22-40 had more knowledge and skills of returning goods online using e-commerce than participants aged 41-55. These findings are confirmed by past research. Hence, there is a need to educate and train people aged 41-45 in fully utilizing the benefits of e-commerce.
