In my opinion when someone says that he is looking for an apologize most of the time he is looking for en economic compensation.
But, in any case, If the back pack company were mine I would have apologized, fixed your torn pack for free, refunded the price you paid in excess for the smaller pack, and offer the correct one with a substantial discount.
I don't think any company would go broke if they reacted like this... I think such an attitude towards customers, altogether with a good product is the only way to go if, as a company, you pretend to have a future.
