Return Policy and Consumer Behavior: Examining Return Frequency and Patterns of Computer Products in India

Abstract

The rapid expansion of e-commerce in India has brought about a fundamental shift in consumer purchasing patterns, with a notable impact on the computer hardware industry. The increased access and choice have also led to a rise in product returns, as customers may not always be satisfied with their purchases or their expectations may not be fully met, posing a significant challenge for companies in the sector. The increasing prevalence of e-commerce in India has amplified product return rates, making return policies a crucial factor in shaping consumer purchase and return behavior. This study examines the return frequency of computer products in India and its relationship with return policies. Using data collected from 224 consumers in Bengaluru through a primary questionnaire, this research applies machine learning techniques—including K-Nearest Neighbors (KNN), Support Vector Machine (SVM), Random Forest, Decision Tree, Logistic Regression, and Naïve Bayes to predict return frequency based on various independent variables.

The study identifies the best-performing model for understanding return policy factors and assesses the impact of return policies on consumer purchase and return decisions. This research contributes to the growing literature on consumer return behavior in India’s electronics market, offering practical insights for retailers, policymakers, and manufacturers to optimize return policies. The findings reveal that policy flexibility, return window duration, refund processing time, restocking fees, and ease of return procedures speed, and associated costs significantly influence consumer return behavior. A well-structured return policy can enhance consumer trust and satisfaction while minimizing unnecessary returns, thus benefiting both businesses and consumers.