Beyond the receipt: risk reduction and locus of attribution in grocery returns

A robust finding documented in the literature is the post-return sales lift. We draw on emerging research that conceptualizes return incidence as contributing to a return stock variable, thereby enhancing consumer memory of the availability of this option. Against this backdrop, we investigate the post-return sales lift via two theoretical lenses: (i) risk- reduction, and (ii) locus of attribution. In our analysis of matched consumers at a South Korean grocery retailer, we find a substantial increase in spending following return incidence. Supporting risk-reduction, this increase is more pronounced for consumers with greater variety-seeking tendencies and smaller basket sizes, suggesting that heightened memory of the return option increases consumer willingness to explore new products and expand their purchases. Supporting attribution, this increase is attenuated when the return includes perishable food items and the holding time of the product(s) in the consumer’s home is shorter. In these cases, we conjecture that consumers attribute responsibility to the retailer, thereby weakening the post-return sales lift. Interestingly, we find carry-over effects for the stock associated with the first return. However, multiple returns suggest an implied negative accumulation. Overall, our conceptualization and empirical findings add to our understanding of the post-return sales lift.