Ethics

Check your premises. There's no "guise" here. The store's "no-questions asked return policy" means that the customer can return the merchandise for any reason whatsoever, which in turn means that the store sets no conditions on a return of the merchandise, other than its being returned in acceptable condition. The store does not require that the customer buy it with the "intention" of keeping it. Intentions are irrelevant in this context. The stores (implied) contract with its customers simply specifies that if the customer returns the merchandise, he return it in good condition.

It's not the customer's responsibility to second guess the reason for the store's return policy. He is responsible only for taking the store's policy at face value and abiding by the terms of the contract. As long as he does this, he is acting ethically.

The large box stores have a “no questions asked” return policy because it works! More profits flow to the bottom line even in view of the abuse. It is simply part of their marketing strategy to generate sales, and the stores would probably loose market share if they changed their return policy.

The reasons the policy works are many and varied.

1.      There is an off chance that the consumer who has every intention of taking a few pictures then returning the high priced camera might change his mind and keep it.

2.      The customer’s conscious may get the better of him, and he may decide to keep it.

3.      The customer might spot something else in the store and purchase it.

4.      The big box stores understand that they are guaranteed to have not one, but two opportunities to sell the customer something--once when he picks the item up and again when he returns it.

5.      The customer may show the camera to a friend, and his friend might buy one.

6.      The customer may seek the advice of a sales clerk in the camera dept., which gives the sales clerk an opportunity to sell the customer something he really wants to keep.

7.      The goodwill factor, the store’s top of the mind recall percentage, and other marketing statistics improve when a “no questions asked” return policy is adopted.

8.      The list of reasons why the big box stores have a return policy of “no questions asked” are unending, and the marketing strategy is brilliant.

The big box stores have such enormous purchasing power they can and will return inventory items to their suppliers for whatever reason and simply deduct the cost of the return from their account payable. In addition, the suppliers know what’s going on, and they continue to do business with the big box stores.

The reality is, both the big retailer and the supplier try and build the cost of their return policy into their gross profit or operating costs. If the cost of returns is less than budgeted so much the better. If the cost of returns is larger than budgeted then there is a policy change. That may be the reason why the return date for electronics is often less than the return date for other good.

Smaller retail outlets don’t have the same clout with their suppliers, and often can’t afford to offer such a liberal return policy. If the smaller stores could afford such a policy many would adopt it.

The question is this. If a retailer adopts a “no questions asked” return policy knowing that a certain percentage of its customers will secretly purchase product with the intention of returning the product after using it, is it unethical for the store’s customers to take advantage of the policy? The answer is it is ethical for the customer to do so.

However, and this is what Joe is getting at, if a customer purchases a product under the terms and conditions of a “no questions asked” return policy, and:

1. The customer is aware that the retailer expects the him to have a reasonable and initial intention of keeping the product;
2. the customer’s intention when he purchased the product was to use it and return it;

then, I agree, the customer has acted in an unethical manner, for all of the reasons that Joe and a few others have mentioned.

Gordon

John,

Just return the UBS stuff to Home Depot. I thought you were Greek? Shit, a Frenchman has to teach you all this basic this stuff!?

And I'm curious what do you make of my citation of the Hampton Inn guarantee? Where if it is invoked three times in a year, and you never pay for a rented room any other time, you are denied any future business dealings with Hampton Inn because they deem the customer satisfied but dishonestly invoking the service satisfaction guarantee?

Or for that matter Macy's has also taken steps to prevent chronic returners from coming back to their store because they are deemed a liability instead of an asset. Macy's has been known to send letters to chronic returners telling them they are no longer welcome to shop at Macy's.

Bill I know why they have those return polices, I know the motivating factors behind them. I know it comes at a cost to the business when a product is returned, but they do this because of hoping a customer will come back again and purchase a product and keep it, or will speak positively about the store's pleasant customer service experience and spread positive word of mouth about the store in hopes it will attract more customers.

In that case, the store has set an explicit policy that the customer can recognize and consider. The customer can decide whether or not he wants to risk returning a product that he simply intended to use on a single occasion, since he may then find himself unable to return one that he had wanted to keep but on which he subsequently changed his mind. Or he can decide not to return a product for light or frivolous reasons, knowing that he may lose his right to return one for more serious reasons. He has a clear set of guidelines on which to base his decision.

Then why wouldn't that apply to customers who buy a camera just to use it once and then return it? Wouldn't they also speak positively about the store, telling others that they can return a product for any reason?

You say that returning it comes as a cost to the business, but if the store allows such a policy, it must mean that the store considers the benefits to outweigh the costs. If it didn't, it wouldn't have the policy.

Also, what difference does it make to the store whether the customer buys the camera with no intention of returning it, uses it once and then discovers a better deal elsewhere and decides to return it, or buys it with the intention of using it only once and then returning it?

You're not saying, are you, that even if the store has a no-questions asked return policy, I'm morally obligated to keep the product unless I find that it's defective?

A customer who genuinely doesn't want the product after realizing it's not what they desire can come back to the store, return it without any hassles, and feel good about doing business with that store in the future because they can feel confident in changing their minds about a product without any hassles

A store can't differentiate between someone who decides they don't want the product because the customer was in error in believing they wanted the product as opposed to people who just want the product for a short length of time but are not willing to pay for it and know they can take advantage of the store's ignorance.

And if you are not saying this, then under what conditions am I morally entitled to return it?

Suppose I decide that I don't have the same use for it that I thought I did.

Am I entitled to return it under those conditions?

Suppose I decide that I can't afford it, and would like to spend my money on something else?

Why can't the store consider it a selling point that the customer is entitled to return the product for any reason, if such a policy attracts more business and increases the store's profits?

They can't simultaneously have a hassle-free return policy for good customers while ask questions to the bad customer "were you just renting this for free?" because they don't know which is which, and make a business decision it is better to take the losses because the benefit of not alienating good customers outweighs that cost.

what is going on here is the store is aware there are dishonest people, but they are aware they can't differentiate between honest and dishonest consumers, and thus they design a return policy so they they don't alienate honest customers and know they outnumber the dishonest customers, and a business decision is made to accept the losses because it outweighs the benefits.