Returns Policies: Make Money by Making Good

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Although returns policies have been widely used for many years, they continue to be a source of controversy. The authors present a framework that explains when and how to adopt returns policies. They analyze the benefits and costs of accepting returns from distributors, and also compare returns policies to alternative ways of coordinating the distribution channel.

V. Padmanabhan is associate professor of marketing, Graduate School of Business, Stanford University. I.P.L. Png is a professor at Anderson Graduate School of Management, UCLA.

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