Retailers can profit more by offering partial refunds on price adjustments.
Retailers can benefit from offering partial refunds on price differences to customers. This strategy can lead to higher profits even if all customers request refunds. By determining the optimal refund percentage, retailers can maximize their gains. It may be more advantageous for retailers to offer partial or greater than full price adjustments to customers. Limiting the time frame for price adjustments may not always be in the best interest of retailers.