The Role of Academic Research in Supply Chain Practice: How Much Are We Contributing?

The challenge of remanufactured products: the role of returns policy and channel structure to reduce consumers' perceived risk

Purpose

While remanufactured products represent an increasingly researched phenomenon in the literature, not much is known about consumers' understanding and acceptance of such products. This study explores this issue in the context of the theory of perceived risk (TPR), investigating return policy leniency and distribution channel choice as potential factors to foster remanufactured products' sales.

Design/methodology/approach

This research utilizes an experimental design composed of a pre-test and a scenario-based main experiment to explore how return policy leniency might mitigate consumers' perceived risk and how their related purchase intention differs across two types of retail distribution channel structures (i.e. brick-and-mortar vs. online).

Findings

The investigation into the efficacy of return policy leniency within two retail distribution channel settings (i.e. brick-and-mortar vs. online) illustrates that providing a lenient return policy is an effective “cue” in increasing consumer purchase intention for remanufactured products. While prior literature has established that consumers value return policy leniency for new products, the authors provide empirical evidence that this preference also applies to remanufactured products. Notably, that return policy preference holds true in both channel settings (i.e. brick-and-mortar vs. online) under consideration. Additionally, and contrary to the authors’ predictions, consumers perceived remanufactured products sold via both channel settings as equally risky, thus highlighting that both are appropriate distribution channels for remanufactured products. Finally, while research on new products provides some initial guidance on consumer perceptions of quality and risk, the study provides empirical evidence into the difference of perceived risk with regard to new versus remanufactured products.

Originality/value

By employing the TPR, this research explored the role played by two supply chain management related factors (returns policy and channel structure) in reducing consumer's perceived risk and increasing purchase intention. In doing so, this study answers the call for more consumer-based supply chain management research in a controlled experimental research setting.

Guidelines for establishing practical relevance in logistics and supply chain management research

Purpose

Rigor and practical relevance are the foundations for logistics and supply chain management (LSCM) as an applied discipline. Whereas there are well-founded criteria for establishing methodological rigor, researchers must provide their own credible logic as to why their papers can influence practice. Accordingly, this paper aims to develop guidelines for establishing practical relevance in research papers.

Design/methodology/approach

A literature review of LSCM, marketing, operations management and management journals forms the foundation for these guidelines.

Findings

Relevance criteria are identified; research should be problem-driven, timely and important, and findings should be implementable, nonobvious, novel and not too costly. Measures for researchers demonstrating the fulfillment of these criteria are identified as practitioner input, gray literature, funding, practitioner involvement and feedback. Researchers should also clearly articulate both problem relevance and the relevance of their findings.

Research limitations/implications

A lack of practical relevance is among the reasons for the rejection of papers by LSCM journals, but researchers can overcome this obstacle using these guidelines.

Practical implications

At a metalevel, this paper contributes to research with greater practical relevance.

Originality/value

Practical relevance is emphasized in the editorials of LSCM journals but has not yet been fully conceptualized from the authors' perspective.