Aug 1st, 9:45 AM - 10:45 AM


Doing Too Little or Too Much to Recover from Product Failure:


This study investigated differences between optimistic and pessimistic customers in their responses to recovery strategies for defective goods and services. We found that optimistic customers are more lenient, stay more loyal; not only when offered replacement of the defective product, but also when provided only a quick fix. When a token gift is added to a replacement, pessimistic but not optimistic customers respond with greater leniency. When a token gift is added to a quick fix, optimistic customers respond with lesser leniency. We suggest that companies can make the error of doing too much, not just the error of doing too little.