The Power of Apology
After an unsatisfactory purchase, many rms are quick to apologize to customers. It is, however, not clear why they should do that. As the apology is costless, it should be regarded as cheap talk and thus ignored by the customer. In this paper, we test in a controlled eld experiment whether apologizi...
| Main Authors: | , , , |
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| Format: | Working paper |
| Language: | English |
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University of Nottingham
2009
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| _version_ | 1826273224149696512 |
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| author | Abeler, J Calaki, J Andree, K Basek, C |
| author_facet | Abeler, J Calaki, J Andree, K Basek, C |
| author_sort | Abeler, J |
| collection | OXFORD |
| description | After an unsatisfactory purchase, many rms are quick to apologize to customers. It is, however, not clear why they should do that. As the apology is costless, it should be regarded as cheap talk and thus ignored by the customer. In this paper, we test in a controlled eld experiment whether apologizing in uences customers' subsequent behavior. We nd that apologizing yields much better outcomes for the rm than oering a monetary compensation. |
| first_indexed | 2024-03-06T22:24:56Z |
| format | Working paper |
| id | oxford-uuid:56592c55-5900-4466-962f-e3199d886dc5 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:24:56Z |
| publishDate | 2009 |
| publisher | University of Nottingham |
| record_format | dspace |
| spelling | oxford-uuid:56592c55-5900-4466-962f-e3199d886dc52022-03-26T16:49:45ZThe Power of ApologyWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:56592c55-5900-4466-962f-e3199d886dc5EnglishDepartment of Economics - ePrintsUniversity of Nottingham2009Abeler, JCalaki, JAndree, KBasek, CAfter an unsatisfactory purchase, many rms are quick to apologize to customers. It is, however, not clear why they should do that. As the apology is costless, it should be regarded as cheap talk and thus ignored by the customer. In this paper, we test in a controlled eld experiment whether apologizing in uences customers' subsequent behavior. We nd that apologizing yields much better outcomes for the rm than oering a monetary compensation. |
| spellingShingle | Abeler, J Calaki, J Andree, K Basek, C The Power of Apology |
| title | The Power of Apology |
| title_full | The Power of Apology |
| title_fullStr | The Power of Apology |
| title_full_unstemmed | The Power of Apology |
| title_short | The Power of Apology |
| title_sort | power of apology |
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