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Journal of Service Research
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Rating E-Tailers' Money-Back Guarantees

Thorsten Posselt

University of Wuppertal

Eitan Gerstner

Loughborough University

Dubravko Radic

University of Wuppertal

Most e-tailers offer money-back guarantees (MBGs) on product returns, but coverage and durations of different policies vary significantly across e-tailers (taking into account restocking fees, shipping and handling fees, and coverage duration). To help consumers and e-tailers evaluate MBG policies, we developed three different "MBGQual" (money-back guarantee quality) indexes that measure the insurance protection, costs, and attractiveness of the MBGs to consumers. The usefulness of these indexes is illustrated by examining MBGs offered by electronic product e-tailers.

Key Words: money-back guarantee • return policy • partial refund • restocking fee • nonrefundable shipping and handling fee

Journal of Service Research, Vol. 10, No. 3, 207-219 (2008)
DOI: 10.1177/1094670507306684
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