English, Article, Journal or magazine article edition: The Power of Apology Johannes Abeler; Juljana Calaki; Kai Andree; ...

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Bookmark: http://trove.nla.gov.au/version/104206
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Power of Apology
Author
  • Johannes Abeler
  • Juljana Calaki
  • Kai Andree
  • Christoph Basek
Physical Description
  • preprint
Notes
  • After an unsatisfactory purchase, many firms 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 field experiment whether apologizing inuences customers' subsequent behavior. We find that apologizing yields much better outcomes for the firm than offering a monetary compensation.
  • Apology, Credulity, Natural Field Experiment
  • RePEc:cdx:dpaper:2009-12
Language
  • English
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