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financial overcompensation

Does ‘overcompensation’ foster customer loyalty?

Consumers expect a refund for malfunctioning products, but there's a customer backlash if retailers seek to retain loyalty through 'overcompensation' that exceeds 150 per cent of the purchase price, says new study co-authored at Cambridge Judge Business School. Suppose you…

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How “overcompensation” can backfire

Suppose a total stranger bumps into you carelessly and knocks your tablet computer to the ground, causing £100 damage, but offers to provide you £1,000 for your loss and troubles. A nice gesture, one might say, something that could build…

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