Best Practices of Reducing Customer Guarantee Returns for Mobile Device Companies

Open Access
Author:
Shimomura, Keigo
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Alexander Novack, Thesis Supervisor
  • John C Spychalski, Honors Advisor
Keywords:
  • mobile phones
  • return policies
  • customer guarantee
Abstract:
In the competitive market of mobile phones, profitability and customer satisfaction are closely related results that frequently place competitive pressure on companies. Oftentimes, in order to achieve success in one realm there has to be compromise in the other. The goal for many of these companies is to offer high levels of flexibility and choice for the consumer without cannibalizing sales and profits. In this specific scenario, a certain service provider’s mobile phone return policy was investigated in order to maximize profitability while maintaining adequate levels of customer service. Mobile phone returns data was analyzed, and the company’s salespeople were interviewed to find the most common issues that result in returns. The results concluded that the main reason for returns was due to mismatch between the customer and the mobile device. Given these findings, suggestions to increase the compatibility of customers and phones were presented.