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Summary
GPS and other new, digital technologies have given companies capabilities like never before. But they also bring up new questions. For instance, if a company using GPS can see a small service failure is about to occur, should it proactively apologize in real time or let it go? Proactive apologizing can backfire, which may cause the customer to perceive this service experience as lackluster, leading to decreased satisfaction, trust, recommendations and patronage. What can be done to help managers decide if and when to apologize, and when appropriate, how to do so in the right manner? This study offers some insights.
