skip to navigation skip to content

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…

Read more

2017 brainfood decremer doesovercompensationfostercustomerloyalty 883x432 1

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…

Read more

2014 news howovercompensationcanbackfire 883x432 1