Http://www the effect of service determinants on customer purchase and return behavior in the online fashion industry

University essay from Högskolan i Borås/Akademin för textil, teknik och ekonomi

Abstract: To be present online is seen, in recent time, as a necessity for fashion companies in order to sustain on the market. Since online shopping lack the opportunity for customers to try on purchased products it entails a risk of experiencing dissatisfaction when orders are received. Through this, customers demand determinants that ensure safety within the purchase. Different kinds of customers might, however, possess various motivations for purchasing, stressing the requirements for variety in service value deliverance. Therefore, purchase and return policies comprise a significant importance in order to create attractiveness towards customers. The problem, though, consists of the balance between offering lenient purchase and return policies, to create competitiveness, but still considering excessive purchasing and depreciation of product value. There are several determinants affecting the shopping experience online. These were combined, with components of an online purchase, in a theoretical model to empirically test the key conceptual ideas embedded in the consumption system perspective. Further, primary data was conducted through company interviews and focus group interviews, with the aim to explore customer behavior online. Findings, from interviews compared with secondary data, analyzed through the theoretical model, indicates that the right of withdrawal and its additional components such as charges, time and inconvenience is interpreted differently by different customers. Further, it is up to e-tailers to discover the benefits and drawbacks of different policies in order to detect the most suited policy for them and their customers.

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