In e-commerce, consumers’ return of unwanted goods is a growing logistical problem for retailers. Research by HKUST’s Man Yu and collaborators shows how third-party insurance for the cost of product return promises to make the process more sustainable as the volume of online sales continues to increase. Products bought online are returned more often than ... Read More

Return insurance is an innovative return policy recently emerging on major Chinese shopping platforms, such as Taobao.com and JD.com. It is underwritten by an insurer and can be purchased by either a retailer or a consumer. Under such insurance, the insurer partially compensates consumers for their hassle costs associated with product return. We analyze the ... Read More

Counterfeiting costs companies as much as US$600 billion a year, and the situation is rapidly becoming worse. How does counterfeiting affect global supply chains, and how can it best be combated? These were the questions explored by Man Yu and Ki Ling Cheung of HKUST and their colleague—with rather surprising results. They found that the threat of ... Read More

Shopkeepers and store managers should base decisions on whether to discount or destroy leftover perishable goods on consumer behavior, an innovative new study has found. While marking down prices can provide welcome revenue for foodstuffs that would otherwise go to waste, this can also result in “intertemporal cannibalization”—a reduction in full-price sales ... Read More

Before deciding to purchase a product, a consumer can access information via consumer reviews by customers who have already purchased the product. Consumer reviews are a form of customer feedback, but this information can also benefit firms. However, consumer-generated quality information (consumer reviews) relies on the volume of consumers who share their ... Read More

Selling a product before a consumer will actually use it can benefit both sellers and consumers. It helps sellers to plan ahead and reduce demand variability. And for consumers, they can ensure they will get the product, possibly at a lower price. Selling in advance also gives sellers an opportunity to exploit consumer uncertainties about their valuations ... Read More

French wine and video games may seem to have little in common, but they are both subject to advance sales – that is, being offered for sale to customers before the quality of the product is widely known. This can benefit the customer by giving them guaranteed availability at a discounted price, and it is good for the seller, too, because they can increase ... Read More