Analysis of Gaming Behaviour based on a Defect-free Return Policy

Abstract

Shopping gradually shifted from offline to online to facilitate the life needs of the general public, but this also brings a series of problems. In this paper, we first analyse and model the consumers' behaviour, establish the consumers' purchase decision model and return probability model according to the consumers' expected and actual utility of the product and the proportion of return shipping cost, based on which, we also establish the retailers' profit model under different sales modes and analyse their optimal order quantity. It is concluded that the optimal order quantity of e-commerce retailers decreases when the return rate of consumers increases; the order quantity is positively correlated with profit; the optimal order quantity decreases when the proportion of return shipping cost borne by e-commerce retailers increases; and the optimal order quantity of e-commerce retailers increases with the increase of the supplier's repurchase price.