Do complainants appreciate overcompensation? A meta-analysis on the effect of simple compensation vs. overcompensation on post-complaint satisfaction

This paper examines the incremental effect of overcompensation as compared to simple compensation on post-complaint satisfaction. In overcompensation, consumers are entitled to a refund that is more than the purchase price, whereas in simple compensation, the refund given is equivalent to if not less than the purchase price. A meta-analysis of 17 experimental studies shows that overcompensation has a substantially lower incremental effect on post-complaint satisfaction than simple compensation. However, when distinguishing between transaction-specific satisfaction and cumulative satisfaction, the smaller effect size of overcompensation mainly holds true for transaction-specific satisfaction. For cumulative satisfaction, the effect size of overcompensation is only marginally smaller. While counter-intuitive, these results appear to have a basis in three established theoretical frameworks, namely the Weber–Fechner law, prospect theory, and the different phenomenologies of the two satisfaction constructs. Implications are discussed for marketing research as well as for complaint management. Areas for future research are also explored.