Research also shows that though it is likely to cost more in
the short run for a firm to have a lenient product return policy,
in the long run, retailers and managers (Petersen and Kumar,
2009) can use information from each customer’s product
return behavior as a tool for realizing long-term relationship
growth and maximizing each customer’s profitability. Thus,
managers can actively use information about product returns
as a metric for managing customer value and, in turn, can
maximize each customer’s value to the firm by implementing
marketing campaigns targeted at the right customers at the right time