Pricing of Complementary Products in Online Purchasing under Return Policy

In online purchasing, customers may return products due to dissatisfaction with the quality of product, and receive a refund based on policy, which is determined by distributors. Online distributors can offer generous policies attract more customers, but at cost reducing total profits. this paper, effect pricing complementary (products sold together other items) in selling under policy investigated. For purpose, mathematical model developed obtain optimal values for price, amount, products. Based analytical results, solution algorithm proposed solve numerical examples perform sensitivity analysis. Findings reveal that, while increasing demand respect quality, returned should be increased. addition, distributor increase when are sensitive Among price shown negatively affected elasticity price. situation, reduce level amount avoid sharp decline profit. high, decreased unchanged.