Reverse logistics programs: gauging their effects on CRM and online behavior

Abstract

Purpose

To provide practitioners of knowledge management with a sense of the importance of reverse logistics as an important part of today's company policies, especially throughout the product life cycle, with the accompanying technology that supports it and the effects on customer relation management (CRM) and satisfaction.

Design/methodology/approach

A review of the applied literature of reverse logistics and its effects on CRM resulted in a basic model and empirical verification of such effects.

Findings

As shown from the empirical section of the present study (n=102), the ease of locating returns procedures and the rating given by respondents to the overall returns process were found to be statistically very significant regarding whether the ease of returning items had an influence on purchasing decisions for most respondents. As demonstrated in the results of stepwise regression analysis of the two independent variables, the largest share of explained variance was explained by the variable, Returns' Procedures.

Research limitations/implications

The purpose of reverse logistics is to accommodate customers wanting to return items and how to account for such accommodations. The breakdown, process, and analysis of reverse logistics will portray the significance of having reverse logistics implemented within a marketing or strategic plan.

Practical implications

This paper describes reverse logistics and CRM within a knowledge‐based system and its implementation process in an academic manner. Hence, there should be a process in place and managers should work to master reserve logistical processes to promote the principles of CRM properly. To remain competitive, firms must develop reverse logistics systems that rival traditional systems in terms of efficiency, cost‐effectiveness, competitiveness, and customer satisfaction.

Originality/value

Many companies and small businesses do not think about the importance and impact of reverse logistics and therefore do not include reverse logistics in their strategic or marketing plan. There are several important aspects of reverse logistics that need to be utilized in every company that exploit and track return policies.

Citation

Smith, A.D. (2005), "Reverse logistics programs: gauging their effects on CRM and online behavior", VINE, Vol. 35 No. 3, pp. 166-181. https://doi.org/10.1108/03055720510634216