London, Sept 22 Companies who simply say sorry to angry customers fare better than those that offer financial compensation, a new study has found.

To reach the conclusion, researchers checked the reaction of more than 100 customers a month who left negative feedback to a firm notching up 10,000 sales a month on eBay.

From analyses it was found that around 45 per cent of complaints were withdrawn in response to an apology compared to only 23 per cent when offered compensation, reports The Daily Express.

Study co-author Dr Johannes Abeler, of the Nottingham School of Economics, said: "People don't seem to realise they're dealing with an expert apologist rather than an individual who feels genuine shame.

"It might be that saying sorry triggers in the customer an instinct to forgive that's hard to overcome rationally.

"The apology should have been regarded as calculated, insincere and just cheap talk." (ANI)