{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,10,11]],"date-time":"2025-10-11T01:59:30Z","timestamp":1760147970288,"version":"build-2065373602"},"reference-count":38,"publisher":"MDPI AG","issue":"1","license":[{"start":{"date-parts":[[2023,3,20]],"date-time":"2023-03-20T00:00:00Z","timestamp":1679270400000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"funder":[{"name":"Science Research Project of Hunan Provincial Department of Education","award":["21B0039","XJK22QJG001"],"award-info":[{"award-number":["21B0039","XJK22QJG001"]}]},{"name":"Hunan Provincial Education Science 14th Five-Year Plan Project","award":["21B0039","XJK22QJG001"],"award-info":[{"award-number":["21B0039","XJK22QJG001"]}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["JTAER"],"abstract":"<jats:p>In e-commerce, retailers often use return shipping insurance (RSI) to solve consumer returns, leading to a high return rate. To reduce this negative effect, we consider restricting rights to restrict consumers from obtaining RSI or buying products. We examine the effect of RSI on retail pricing strategies and profits under restricting rights. We formulate a game-theoretical model which consists of one insurer, a retailer and two types of consumers (informed consumers and uninformed consumers). By solving the model, we find that even though the insurer has restricted uninformed consumers from obtaining RSI, the retailer further restricts them from buying the product when the salvage value is low. Second, when the retailer and insurer have no right to restrict uninformed consumers, purchasing RSI may hurt the retailer. Third, when the insurer restricts uninformed consumers and the product salvage is low, the retailer adopts the high-price strategy; otherwise, the retailer adopts the low-price strategy. Finally, when the product salvage is low, the retailer will prevent uninformed consumers from buying the product by adopting the high-price strategy or using the restricting right. In this case, the insurer will set a higher premium.<\/jats:p>","DOI":"10.3390\/jtaer18010036","type":"journal-article","created":{"date-parts":[[2023,3,21]],"date-time":"2023-03-21T04:48:01Z","timestamp":1679374081000},"page":"706-724","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["The Impact of Return Shipping Insurance on a Retailer Based on Restricting Rights"],"prefix":"10.3390","volume":"18","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-2150-3470","authenticated-orcid":false,"given":"Xingyi","family":"Yang","sequence":"first","affiliation":[{"name":"School of Management, Xiamen University, Xiamen 361005, China"}]},{"given":"Xiaopei","family":"Dai","sequence":"additional","affiliation":[{"name":"Hunan Key Laboratory of Macroeconomic Big Data Mining and Its Application, School of Business, Hunan Normal University, Changsha 410081, China"}]},{"given":"Zhenyu","family":"Liu","sequence":"additional","affiliation":[{"name":"School of Management, Xiamen University, Xiamen 361005, China"}]}],"member":"1968","published-online":{"date-parts":[[2023,3,20]]},"reference":[{"key":"ref_1","unstructured":"CNNIC (2022, March 15). The 49st Statistical Report on Internet Development in China. Available online: http:\/\/www.cnnic.net.cn\/NMediaFile\/old_attach\/P020220721404263787858.pdf."},{"key":"ref_2","unstructured":"Goldberg, J. (2022, March 15). E-Commerce Sales Grew 50% to $870 Billion during the Pandemic. Available online: https:\/\/www.forbes.com\/sites\/jasongoldberg\/2022\/02\/18\/e-commerce-sales-grew-50-to-870-billion-during-the-pandemic\/?sh=4f681d294e83."},{"key":"ref_3","unstructured":"Saleh, K. (2022, March 15). E-Commerce Product Return Rate\u2014Statistics and Trends. Available online: https:\/\/www.invespcro.com\/blog\/ecommerce-product-return-rate-statistics\/."},{"key":"ref_4","unstructured":"ParcelLab (2022, March 15). 5 Operations Experience Issues e-Commerce Brands Must Fix. Available online: https:\/\/parcellab.com\/blog\/5-post-purchase-tips."},{"key":"ref_5","unstructured":"Marcia, K. (2022, March 15). The Growing Problem of Customer Returns. Available online: https:\/\/www.practicalecommerce.com\/the-growing-problem-of-customer-returns."},{"key":"ref_6","unstructured":"IAC (2022, March 15). China Insurance Association Released the 2014\u20132019 Internet Property Insurance Market Analysis Report. Available online: http:\/\/www.iachina.cn\/art\/2020\/3\/16\/art_22_104412.html."},{"key":"ref_7","doi-asserted-by":"crossref","first-page":"7","DOI":"10.1016\/0022-4359(95)90010-1","article-title":"Money back guarantees in retailing: Matching products to consumer tastes","volume":"71","author":"Davis","year":"1995","journal-title":"J. Retail."},{"key":"ref_8","doi-asserted-by":"crossref","first-page":"442","DOI":"10.1287\/mksc.14.4.442","article-title":"Signaling quality with a money-back guarantee: The role of transaction costs","volume":"14","author":"Moorthy","year":"1995","journal-title":"Mark. Sci."},{"key":"ref_9","doi-asserted-by":"crossref","first-page":"595","DOI":"10.1287\/msom.1080.0240","article-title":"Consumer returns policies and supply chain performance","volume":"11","author":"Su","year":"2009","journal-title":"Manuf. Serv. Oper. Manag."},{"key":"ref_10","doi-asserted-by":"crossref","first-page":"489","DOI":"10.1111\/j.1937-5956.2011.01285.x","article-title":"Returns policy and quality risk in e-business","volume":"21","author":"Hsiao","year":"2012","journal-title":"Prod. Oper. Manag."},{"key":"ref_11","doi-asserted-by":"crossref","first-page":"88","DOI":"10.1016\/j.ejor.2014.09.049","article-title":"Consumer returns policies with endogenous deadline and supply chain coordination","volume":"242","author":"Xu","year":"2015","journal-title":"Eur. J. Oper. Res."},{"key":"ref_12","doi-asserted-by":"crossref","first-page":"376","DOI":"10.1287\/msom.2015.0570","article-title":"Counteracting strategic purchase deferrals: The impact of online retailers\u2019 return policy decisions","volume":"18","author":"Altug","year":"2016","journal-title":"Manuf. Serv. Oper. Manag."},{"key":"ref_13","doi-asserted-by":"crossref","first-page":"42","DOI":"10.1287\/mksc.1100.0588","article-title":"\u201cBricks and clicks\u201d: The impact of product returns on the strategies of multichannel retailers","volume":"30","author":"Ofek","year":"2011","journal-title":"Mark. Sci."},{"key":"ref_14","doi-asserted-by":"crossref","first-page":"614","DOI":"10.1016\/j.ejor.2016.07.031","article-title":"When to introduce an online channel, and offer money back guarantees and personalized pricing?","volume":"257","author":"Chen","year":"2017","journal-title":"Eur. J. Oper. Res."},{"key":"ref_15","doi-asserted-by":"crossref","first-page":"210","DOI":"10.1287\/msom.2019.0830","article-title":"How does a return period policy change affect multichannel retailer profitability?","volume":"23","author":"Ertekin","year":"2021","journal-title":"Manuf. Serv. Oper. Manag."},{"key":"ref_16","doi-asserted-by":"crossref","first-page":"1630","DOI":"10.1287\/msom.2021.1026","article-title":"Value of Online\u2013Off-line Return Partnership to Off-line Retailers","volume":"24","author":"Hwang","year":"2022","journal-title":"Manuf. Serv. Oper. Manag."},{"key":"ref_17","doi-asserted-by":"crossref","first-page":"16","DOI":"10.1016\/j.elerap.2017.05.001","article-title":"Design for the pricing strategy of return-freight insurance based on online product reviews","volume":"25","author":"Geng","year":"2017","journal-title":"Electron. Commer. Res. Appl."},{"key":"ref_18","doi-asserted-by":"crossref","first-page":"102447","DOI":"10.1016\/j.omega.2021.102447","article-title":"Offering return-freight insurance or not: Strategic analysis of an e-seller\u2019s decisions","volume":"103","author":"Chen","year":"2021","journal-title":"Omega"},{"key":"ref_19","doi-asserted-by":"crossref","first-page":"108110","DOI":"10.1016\/j.ijpe.2021.108110","article-title":"Return shipping insurance: Free versus for-a-fee?","volume":"235","author":"Li","year":"2021","journal-title":"Int. J. Prod. Econ."},{"key":"ref_20","doi-asserted-by":"crossref","first-page":"5847","DOI":"10.1287\/mnsc.2021.4186","article-title":"Signaling Quality with Return Insurance: Theory and Empirical Evidence","volume":"68","author":"Zhang","year":"2022","journal-title":"Manag. Sci."},{"key":"ref_21","doi-asserted-by":"crossref","first-page":"102665","DOI":"10.1016\/j.omega.2022.102665","article-title":"The impact of cross-selling on managing consumer returns in omnichannel operations","volume":"111","author":"Yang","year":"2022","journal-title":"Omega"},{"key":"ref_22","doi-asserted-by":"crossref","first-page":"107890","DOI":"10.1016\/j.ijpe.2020.107890","article-title":"When should the e-tailer offer complimentary return-freight insurance?","volume":"230","author":"Fan","year":"2020","journal-title":"Int. J. Prod. Econ."},{"key":"ref_23","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1007\/s43069-022-00120-4","article-title":"Returns Freight Insurance Policy and the Impact from a BOPS Retailer","volume":"3","author":"He","year":"2022","journal-title":"Oper. Res. Forum"},{"key":"ref_24","doi-asserted-by":"crossref","first-page":"141","DOI":"10.1016\/j.ejor.2022.06.063","article-title":"Extracting values from consumer returns: The role of return-freight insurance for competing e-sellers","volume":"306","author":"Chen","year":"2023","journal-title":"Eur. J. Oper. Res."},{"key":"ref_25","doi-asserted-by":"crossref","first-page":"107767","DOI":"10.1016\/j.ijpe.2020.107767","article-title":"Optimal pricing and return policy and the value of freight insurance for a retailer facing heterogeneous consumers with uncertain product values","volume":"229","author":"Lin","year":"2020","journal-title":"Int. J. Prod. Econ."},{"key":"ref_26","doi-asserted-by":"crossref","first-page":"2037","DOI":"10.1287\/mnsc.1120.1535","article-title":"Optimal search for product information","volume":"58","author":"Branco","year":"2012","journal-title":"Manag. Sci."},{"key":"ref_27","doi-asserted-by":"crossref","first-page":"3576","DOI":"10.1287\/mnsc.2015.2316","article-title":"Search for information on multiple products","volume":"62","author":"Ke","year":"2016","journal-title":"Manag. Sci."},{"key":"ref_28","doi-asserted-by":"crossref","first-page":"106","DOI":"10.1016\/j.ijindorg.2018.03.009","article-title":"Price-directed consumer search","volume":"58","author":"Ding","year":"2018","journal-title":"Int. J. Ind. Org."},{"key":"ref_29","doi-asserted-by":"crossref","first-page":"490","DOI":"10.1287\/mksc.1040.0080","article-title":"Buyer search costs and endogenous product design","volume":"23","author":"Kuksov","year":"2004","journal-title":"Mark. Sci."},{"key":"ref_30","doi-asserted-by":"crossref","first-page":"2607","DOI":"10.1287\/mnsc.2018.3058","article-title":"Consumer search and retail market structure","volume":"65","author":"Rhodes","year":"2019","journal-title":"Manag. Sci."},{"key":"ref_31","doi-asserted-by":"crossref","first-page":"469","DOI":"10.1287\/mksc.2018.1084","article-title":"Showrooming and webrooming: Information externalities between online and offline sellers","volume":"37","author":"Jing","year":"2018","journal-title":"Mark. Sci."},{"key":"ref_32","doi-asserted-by":"crossref","first-page":"2121","DOI":"10.1111\/poms.13201","article-title":"Return window decision in a distribution channel","volume":"29","author":"Ma","year":"2020","journal-title":"Prod. Oper. Manag."},{"key":"ref_33","doi-asserted-by":"crossref","first-page":"313","DOI":"10.1177\/109467059914003","article-title":"Selling with \u201csatisfaction guaranteed\u201d","volume":"1","author":"Fruchter","year":"1999","journal-title":"J. Serv. Res-Us"},{"key":"ref_34","doi-asserted-by":"crossref","first-page":"255","DOI":"10.1287\/mksc.1040.0047","article-title":"Implications of reduced search cost and free riding in e-commerce","volume":"23","author":"Wu","year":"2004","journal-title":"Mark. Sci."},{"key":"ref_35","doi-asserted-by":"crossref","first-page":"5558","DOI":"10.1287\/mnsc.2019.3492","article-title":"Consumer return policies in omnichannel operations","volume":"66","author":"Nageswaran","year":"2020","journal-title":"Manag. Sci."},{"key":"ref_36","doi-asserted-by":"crossref","first-page":"107944","DOI":"10.1016\/j.ijpe.2020.107944","article-title":"Operation strategies with respect to insurance subsidy optimization for online retailers dealing with large items","volume":"232","author":"Zhou","year":"2021","journal-title":"Int. J. Prod. Econ."},{"key":"ref_37","doi-asserted-by":"crossref","first-page":"58","DOI":"10.1108\/09604520410513677","article-title":"A conceptual model and empirical examination of the effect of service guarantees on post-purchase consumption evaluations","volume":"14","author":"McCollough","year":"2004","journal-title":"Manag. Serv. Qual."},{"key":"ref_38","doi-asserted-by":"crossref","first-page":"268","DOI":"10.1016\/j.jretai.2008.05.001","article-title":"Consumer responses to vertical service line extensions","volume":"84","author":"Lei","year":"2008","journal-title":"J. Retail."}],"container-title":["Journal of Theoretical and Applied Electronic Commerce Research"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.mdpi.com\/0718-1876\/18\/1\/36\/pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,10,10]],"date-time":"2025-10-10T18:59:39Z","timestamp":1760122779000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.mdpi.com\/0718-1876\/18\/1\/36"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2023,3,20]]},"references-count":38,"journal-issue":{"issue":"1","published-online":{"date-parts":[[2023,3]]}},"alternative-id":["jtaer18010036"],"URL":"https:\/\/doi.org\/10.3390\/jtaer18010036","relation":{},"ISSN":["0718-1876"],"issn-type":[{"type":"electronic","value":"0718-1876"}],"subject":[],"published":{"date-parts":[[2023,3,20]]}}}