Final answer:
A retailer's flexible return policy helps to mitigate customer dissatisfaction and encourages purchases by promising quality, especially important for companies that sell products through non-physical channels. This is crucial for companies like L.L. Bean which rely on mail, telephone, or web sales where customers cannot directly inspect products.
Step-by-step explanation:
A retailer may allow for a more flexible return policy because it keeps customers from being dissatisfied by allowing them to return or exchange items. By providing a money-back guarantee or a similar return policy, the retailer signals a promise of quality. This practice can be particularly valuable for businesses like L.L. Bean, which operates mainly through non-physical channels such as mail, telephone, or web sales, where customers cannot see or touch the products before purchasing. A flexible return policy coupled with a strong reputation for quality can help such a company prosper, despite the inevitable problem of imperfect information.
When it comes to buying clothes, teenagers often follow social norms, which may be influenced by reasons such as following parents' rules or saving money. However, the return policies are typically designed to protect customers in general and are not meant to be exploited for one-time use of products.