{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,10,27]],"date-time":"2025-10-27T11:03:21Z","timestamp":1761563001564,"version":"3.41.2"},"reference-count":34,"publisher":"Emerald","issue":"1","license":[{"start":{"date-parts":[[2023,9,29]],"date-time":"2023-09-29T00:00:00Z","timestamp":1695945600000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["K"],"published-print":{"date-parts":[[2025,1,2]]},"abstract":"<jats:sec><jats:title content-type=\"abstract-subheading\">Purpose<\/jats:title><jats:p>The return behavior of customers has a great impact on the e-retail industry and has resulted in the emergence of return-freight insurance (RI). Additionally, customer loss aversion arising from returns affects e-retailers' decisions and manufacturers' profits. Therefore, the main purpose of the authors' study is to determine how e-retailers and manufacturers choose their RI strategy and pricing according to customers' loss aversion.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Design\/methodology\/approach<\/jats:title><jats:p>The authors propose three scenarios: no RI, customer purchase RI and free e-retail RI (FRI). Meanwhile, the authors also model a Stackelberg game between e-retailers and manufacturers for analysis. Then, according to customer return behavior and loss aversion, the authors study the optimal pricing decision and RI premium allocation scheme for e-retailers and manufacturers under different scenarios.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Findings<\/jats:title><jats:p>It was found that the loss sensitivity reduces customers' willingness to buy RI, which is not conducive to the development of e-retailers and manufacturers. Additionally, with higher loss sensitivity, e-retailers and manufacturers offer FRI to gain higher profits, which supports the implementation of the FRI strategy.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title><jats:p>The authors introduce customers' loss aversion into RI to analyze the optimal pricing decisions and profits of e-retailers and manufacturers, enriching the application of loss aversion theory. In addition, this study analyzes the two-way cost-sharing mechanism between manufacturers and e-retailers to provide FRI, which provides a theoretical basis for RI premium sharing.<\/jats:p><\/jats:sec>","DOI":"10.1108\/k-07-2023-1187","type":"journal-article","created":{"date-parts":[[2023,9,29]],"date-time":"2023-09-29T09:34:21Z","timestamp":1695980061000},"page":"182-202","source":"Crossref","is-referenced-by-count":3,"title":["The optimal decision of e-retailer\u00a0based on return-freight insurance \u2013 considering the loss aversion of 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