COD: A Boon or Curse for Online Impulse Buying?

Abstract

Cash on delivery (COD) option has revolutionized the online shopping industry. Although COD has proved itself as a boon for customers, there are mixed opinions about its effectiveness among marketers. This article investigates COD from a marketer’s point of view. Based on the theories of perceived financial risk, it suggests moderating role of COD in enhancing online impulse purchases. Further, it investigates the negative side of COD and suggests the moderating role of COD in increasing product returns. It discusses the ways for the effective use of COD to help marketers to increase their profits. Managerial implications and future research scope are also discussed.