Apologizing on Demand : A Field Experiment on the effects of apology on future demand

Last registered on September 12, 2017

Pre-Trial

Trial Information

General Information

Title
Apologizing on Demand : A Field Experiment on the effects of apology on future demand
RCT ID
AEARCTR-0002342
Initial registration date
July 19, 2017

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
July 19, 2017, 3:10 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
September 12, 2017, 12:34 PM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Region

Primary Investigator

Affiliation
Vassar College

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2017-07-20
End date
2017-12-31
Secondary IDs
Abstract
Apologies are a key customer service tool for managing customer relationships. We run a field experiment with a retail technology company where customers who have a bad experience are offered an email apology and monetary compensation. We vary the wording of the apology and the size of compensation in order to test predictions of the apology model from Ho (2012). In particular, we are looking for the impact of an apology on the shape of future demand. Specifically, we want to know how apologies affect customer response to future price increases and decreases and to future bad experiences.
External Link(s)

Registration Citation

Citation
Ho, Benjamin. 2017. "Apologizing on Demand : A Field Experiment on the effects of apology on future demand." AEA RCT Registry. September 12. https://doi.org/10.1257/rct.2342-2.0
Former Citation
Ho, Benjamin. 2017. "Apologizing on Demand : A Field Experiment on the effects of apology on future demand." AEA RCT Registry. September 12. https://www.socialscienceregistry.org/trials/2342/history/21341
Experimental Details

Interventions

Intervention(s)
The Intervention consists of identifying customers who have had a bad experience. After the bad experience, customers in the treatment group will receive an email an apology whose wording reflects either a generic apology, a reputation based apology, or a promise based apology (Ho, 2012). Each treatment group will be offered either $0 or $5 as compensation.
Intervention Start Date
2017-07-21
Intervention End Date
2017-09-30

Primary Outcomes

Primary Outcomes (end points)
Primary outcomes are estimates of future demand as a function of the apology treatment (e.g. responsiveness of demand to future price changes, future circumstances, and future bad experiences as well the level of future demand).
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Customers who have a bad experience are randomized into one of the three apology conditions (generic apology, reputational apology, promise apology), and one of the two compensation conditions plus a no apology control. Within each of the apology conditions, subjects are randomized between receive $0 in compensation and $5 in compensation.
Experimental Design Details
Randomization Method
Randomization by computer
Randomization Unit
Randomized at the individual level
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
1.6 million individuals
Sample size: planned number of observations
1.6 million
Sample size (or number of clusters) by treatment arms
200,000 per treatment arm (3 types of apologies + 1 non apology X $0 or $5 compensation)

balanced for
• Product usage in the previous month
• Lifetime product usage
• Product usage composition
• Tenure on platform
• Frequency of bad experiences in the past month
• Tickets opened
• Average past price
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
Vassar College Institutional Review Board
IRB Approval Date
2017-07-09
IRB Approval Number
n/a
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials