Examining the Signaling Effect of E-tailers’ Return Policies

E-tailers normally have more accurate information regarding their products and services than consumers due to the nature of online transactions. To reduce consumers’ concerns of hidden information, e-tailers can use lenient return policies to attempt to signal high product and service quality. This research proposes a model to investigate the signaling effect of two components of return policy, return window—short return window vs. long return...