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Do not apologise too early

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  • Huang, Lidingrong

Abstract

In partnership with a NASDAQ-listed e-commerce firm, I conduct a field experiment to explore the impact of apology timing on the post-apology spending of dissatisfied customers. I find that apology timing matters both statistically and economically in maintaining customer-firm relationships in the short term (7 days) but not in the longer term (14 days). The experiment also sheds light on how the efficacy of verbal communications such as apologies can be shaped by emotions and provides a glimpse of how emotion venting may affect customers’ spending behaviour in the field.

Suggested Citation

  • Huang, Lidingrong, 2021. "Do not apologise too early," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    • Handle: RePEc:eee:soceco:v:90:y:2021:i:c:s2214804320306893
    DOI: 10.1016/j.socec.2020.101646
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    References listed on IDEAS

    as
    1. Dickinson, David L. & Masclet, David, 2015. "Emotion venting and punishment in public good experiments," Journal of Public Economics, Elsevier, vol. 122(C), pages 55-67.
    2. Utikal, Verena, 2012. "A fault confessed is half redressed—Confessions and punishment," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 314-327.
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    4. Abeler, Johannes & Calaki, Juljana & Andree, Kai & Basek, Christoph, 2010. "The power of apology," Economics Letters, Elsevier, vol. 107(2), pages 233-235, May.
      • Johannes Abeler & Juljana Calaki & Kai Andree & Christoph Basek, 2009. "The Power of Apology," Discussion Papers 2009-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    5. Drouvelis, Michalis & Grosskopf, Brit, 2016. "The effects of induced emotions on pro-social behaviour," Journal of Public Economics, Elsevier, vol. 134(C), pages 1-8.
    6. Ockenfels, Axel & Sliwka, Dirk & Werner, Peter, 2015. "Timing of kindness – Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 79-87.
    7. Elias L Khalil & Nick Feltovich, 2018. "Moral licensing, instrumental apology and insincerity aversion: Taking Immanuel Kant to the lab," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-24, November.
    8. Fischbacher, Urs & Utikal, Verena, 2013. "On the acceptance of apologies," Games and Economic Behavior, Elsevier, vol. 82(C), pages 592-608.
    9. Basil Halperin & Benjamin Ho & John A List & Ian Muir, 2022. "Toward An Understanding of the Economics of Apologies: Evidence from a Large-Scale Natural Field Experiment," The Economic Journal, Royal Economic Society, vol. 132(641), pages 273-298.
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    More about this item

    Keywords

    Apology; Timing; Field experiment; E-commerce; Emotion venting;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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