How powerful is an apology?

Cheap-talk apologies to angry customers produce better results than offering money:

How should firms react to customer complaints after an unsatisfactory purchase? In a field experiment, we test the effect of different reactions and find that a cheap-talk apology yields significantly better outcomes for the firm than offering a monetary compensation.

Source: “The power of apology” from Economics Letters, Volume 107, Issue 2, May 2010, Pages 233-235

Join over 185,000 readers. Get a free weekly update via email here.

Related posts:

How To Stop Being Lazy And Get More Done – 5 Expert Tips

6 Things The Most Productive People Do Every Day

New Harvard Research Reveals A Fun Way To Be More Successful