The Indian Institute of Management (IIM), Lucknow researchers have explored how chatbots used by Online Travel Agencies (OTAs) should apologise to customers for service failures.
Published in the Asia Pacific Journal of Tourism Research, the study, co-authored by Prof Mehra and her research scholar Rishab Chauhan, examines whether chatbots should use concrete or abstract language when expressing apologies.
For example, a concrete apology might say, “We apologise for the delay in processing your booking. Your refund of $100 will be credited within 3 business days.”
Similarly, an abstract apology might simply state, “We apologise for the delay. Your refund will be credited soon.”
The research investigates which type of apology is more effective in helping customers forgive service failures and under what conditions.
The research team suggests future research could explore the impact of chatbot apology language in different cultures and service sectors, and investigate other language styles used in customer service.
Meanwhile, the IIM Lucknow researchers conducted three comprehensive studies to assess customers responses to different apology styles.
Participants interacted with chatbots, designed using the ‘Bot Penguin’ platform, that were programmed to offer either abstract or concrete apologies following a simulated service failure.
Using advanced research techniques such as confirmatory factor analysis, the researchers ensured the findings were reliable and applicable to real-world situations.
The results showed that concrete language is more effective in gaining customer forgiveness for significant failures, while abstract language is more suitable for minor issues.
The study found that customer preferences for the language style of apology were not influenced by the type of service—whether the service was pleasure-oriented or use-oriented.
The research highlighted that sincerity and empathy are critical in chatbot communication.
When customers sense the company genuinely cares about resolving their issues, they are more likely to forgive.
A concrete apology, which includes specific details about the resolution, conveys a sense of sincerity.
“While much research has focused on traditional customer service channels like phone calls or face-to-face interactions, this study is among the first to examine how chatbot language affects customer forgiveness in the context of OTAs,” Mehra said.
The findings suggest that using concrete, personalised, and clear language in chatbot apologies increases customer forgiveness, enhancing satisfaction and word-of-mouth.
These findings have implications beyond the OTA sector, extending to industries such as retail, banking, healthcare, and telecommunications.
Established in 1984, IIM Lucknow is the 4th in the prestigious IIM family of management schools to be established in India after IIMs in Calcutta, Ahmedabad, and Bangalore.
In 2005, IIM Lucknow expanded its area of influence in the realm of management education by becoming the first IIM to set up a satellite campus exclusively for Executive Education at NOIDA in Delhi NCR region.
IIM Lucknow is accredited by AACSB and AMBA while its EQUIS Accreditation is ongoing. The institute features in the prestigious FT -100 Top Global Business schools for both the 2-year Flagship PGP program and One-year IPMX Program.
It is consistently ranked amongst top business schools in the NIRF Rankings. IIM Lucknow was the first IIM to start a 2-year full time MBA program in Sustainable Management 10 years back.