Joint determination of the optimal selling price, refund policy and quality level for complementary products in online purchasing
by Ata Allah Taleizadeh; Shima Rezvan-Beydokhti; Leopoldo Eduardo Cárdenas-Barrón
European J. of Industrial Engineering (EJIE), Vol. 12, No. 3, 2018

Abstract: Recently, companies have an increasing interest in online purchasing or e-shopping. However, in this type of buying the customer cannot validate the quality of the products. Thus, they trust in the return policy as a signal of a good quality. If the customers are not satisfied then they can return the products and refund their money back. This research deals with the problem of joint determination of the optimal selling price, refund policy and quality level for complementary products in an online purchasing. It is assumed that the demand of each product is a function of price, refund and quality level. Furthermore, return policy is also a function of refund and quality level; and return quantity of the products is affected by the return quantity of the other product. The profit maximisation model is illustrated with a numerical example. [Received: 12 February 2015; Revised: 25 August 2017; Accepted: 31 January 2018]

Online publication date: Thu, 24-May-2018

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of Industrial Engineering (EJIE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com