Deck 15: Consumer Relationships

Question 1

A complainer is more likely than a noncomplainer to become a satisfied customer.

Answer 1

True

Question 2

Negative public publicity occurs when negative word-of-mouth spreads on a relatively large scale, possibly even involving media coverage.

Answer 2

True

Question 3

The consumer who reacts with disgust is very likely to complain.

Answer 3

False
The consumer who reacts with disgust is unlikely to complain.

Question 4

An angry customer is the worst possible outcome for a business.

Question 5

The best course of action to handle negative public publicity is to do nothing because the news will eventually go away.

Question 6

Less than half of customers experiencing some dissatisfaction complain to management.

Question 7

Consumers who experience anger in response to an evaluation of the consumption experience are least likely to complain.

Question 8

Satisfaction, joy, anger, and frustration are examples of postconsumption behaviors.

Question 9

Complaining behavior occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event.

Question 10

Switching is a possible postconsumption behavior.

Question 11

One suggestion for handling consumer complaints effectively is to show empathy for the customer's situation.

Question 12

Complaining is a type of postconsumption behavior.

Question 13

Some dissatisfied customers retaliate in the form of revenge-oriented behaviors directed toward a business.

Question 14

Confirmation refers to the extent that consumers believe the processes involved in processing a transaction and handling a complaint is fair.

Question 15

Positive WOM occurs when consumers spread information from one to another about positive consumption experiences with companies.

Question 16

The worst thing a company can do to handle negative public publicity is to release information allowing the public to draw its own conclusion.

Question 17

In extreme cases, the negative WOM attached to one company can have affects that spill over to an entire industry.

Question 18

Loyalty is a postconsumption affective reaction.

Question 19

One suggestion for handling consumer complaints effectively is to not admit any wrongdoing.

Question 20

Complainers are valuable sources of feedback for businesses.

Question 21

Share of wallet is sometimes used to refer to customer share.

Question 22

Personal switching costs refer to the emotional and psychological consequences of changing from one brand/retailer/service provider to another.

Question 23

True consumer loyalty consists of both a pattern of repeated behavior and a strong feeling of attachment.

Question 24

A consumers' sense of attachment, dedication, and identification is known as customer commitment.

Question 25

Customer share represents a behavioral component that is indicative of customer loyalty.

Question 26

Equity judgments, in particular perceptions of unfair treatment, are particularly prone to lead consumers to switch.

Question 27

Internet only retailers have successfully built up relational switching costs.

Question 28

Economic switching costs consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice.

Question 29

Switching costs can be divided into three categories: procedural, financial, and relational.

Question 30

Switching costs are the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another.

Question 31

Competitive intensity refers to the resources allocated to one brand from among the set of competing brands.

Question 32

A loyalty card/program is a device that keeps track of the amount of purchasing a consumer has had with a given marketer and once some level is reached, a reward is offered usually in terms of future purchase incentives.

Question 33

Under conditions of high competitive intensity and low switching costs, dissatisfied consumers are almost certain to switch.

Question 34

The amount of competition and the competitive intensity are factors that play a role in determining who switches.

Question 35

Opportunity switching costs involve lost time and effort.

Question 36

Switching in a consumer behavior context refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion.

Question 37

Market share is the portion of resources allocated to one brand from among the set of competing brands.

Question 38

Consumer consistency means that a consumer will tend to continue a pattern of behavior until some stronger force motivates him or her to change.

Question 39

When competitive intensity is low but switching costs are high, a company is highly vulnerable to consumers who will switch providers.

Question 40

The main concern with negative WOM for marketers is that it affects all consumers in the same way, so it needs to be countered immediately to avoid further spreading.

Question 41

____ is the extent that consumers believe the processes involved in processing a transaction and handling any complaints is fair.

A) Marketing equity
B) Reciprocity
C) Customer justice
D) Equity congruence
E) Procedural justice

Question 42

All of the following are examples of postconsumption affective reactions EXCEPT _____.

A) joy
B) skepticism
C) switching
D) anger
E) satisfaction

Question 43

Which of the following is a postconsumption cognitive process?

A) disconfirmation
B) complaining
C) loyalty
D) satisfaction
E) commitment

Question 44

Customers have a lifetime value to the firm.

Question 45

Value plays a role in the postconsumption process.

Question 46

A consumer who yells, insults, and makes a public scene in an effort to harm a business after receiving poor service is engaging in _____.

A) retaliatory revenge
B) rancorous revenge
C) negative public publicity
D) viscous revenge
E) negative word-of-mouth

Question 47

Which of the following is a postconsumption behavior?

A) love
B) attachment
C) equity
D) switching
E) all of these choices

Question 48

Antiloyal consumers are those who will do everything possible to avoid doing business with a particular marketer.

Question 49

Trust is a characteristic of relationship quality in which a buyer and seller can depend on each other.

Question 50

Relationship quality represents the degree of connectedness between a consumer and other consumers.

Question 51

One characteristic of relationship quality is competence, which means the consumer views company and service providers as knowledgeable and capable.

Question 52

One characteristic of relationship quality is personalization, which means the consumer and firm understand each other and "speak the same language."

Question 53

Which type of behavior occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event?

A) complaining
B) disconfirming
C) switching
D) antiloyalty
E) a, b, and c above

Question 54

Utilitarian value is more important than hedonic value in preventing switching behavior.

Question 55

Joe was not satisfied with his meal or the service at a restaurant, so he told the manager about it. Which type of postconsumption behavior did Joe perform?

A) antiloyalty
B) switching
C) disconfirming
D) complaining
E) attributing

Question 56

All of the following are suggestions for handling consumer complaints effectively EXCEPT _____.

A) Thank the customer for providing the information.
B) Apologize sincerely.
C) Don't show empathy for the customer's situation.
D) Act quickly.
E) Follow up with the customer after the corrective action.

Question 57

How is a complainer different from a noncomplainer?

A) A complainer is more likely to become a satisfied customer.
B) A complainer is unlikely to return.
C) A complainer is less likely to tell others when the company responds poorly.
D) A complainer is not as valuable as a noncomplainer to a firm.
E) all of these choices

Question 58

The certainty of a lengthy stream of revenues for a firm is much greater for a customer acting only on inertia.

Question 59

Customer share is affective, and commitment is a behavioral component of loyalty.

Question 60

Which of the following statements is TRUE regarding complaining behavior?

A) All customers reporting dissatisfaction complain.
B) Consumers who do complain react with different emotions than do those who do not complain.
C) Consumers who experience anger in response to an evaluation of the consumption experience are not likely to complain.
D) A disgusted consumer is very likely to complain.
E) An angry customer is the worst possible outcome for a business.

Question 61

The costs associated with changing from one choice, such as a brand, retailer, or service provider, to another are known as _____.

A) switching costs
B) transfer costs
C) conversion costs
D) opportunity costs
E) external costs

Question 62

Matt found out that he would have to pay a $450 initial fee to switch service providers for his home security system. The $450 is an example of which type of switching cost?

A) procedural switching costs
B) transactional switching costs
C) financial switching costs
D) separation switching costs
E) induction switching costs

Question 63

Which of the following refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion?

A) disconfirmation
B) switching
C) complaining
D) disloyalty
E) dissatisfaction

Question 64

All of the following are implications of negative word-of-mouth EXCEPT _____.

A) can hurt sales
B) can damage the image of the firm
C) can have effects that spill over to an entire industry
D) can increase switching costs
E) all of these choices are implications of negative word-of-mouth

Question 65

When negative WOM spreads on a relatively large scale, it can result in _____.

A) negative public publicity
B) product recalls
C) legal action
D) negative disconfirmation
E) dissatisfaction

Question 66

Which type of switching costs consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value form a new product choice?

A) procedural switching costs
B) transactional switching costs
C) relationship switching costs
D) financial switching costs
E) economic switching costs

Question 67

Angie was so embarrassed by her boyfriend's behavior at a restaurant. The waiter brought out the wrong order and her boyfriend told him it was wrong but the waiter wasn't very nice about it. Then her boyfriend started yelling at him, calling him an idiot, and demanded to see the manager. People were staring at them and she just wanted him to stop carrying on like that. What is Angie's boyfriend's behavior called?

A) negative word-of-mouth
B) retaliatory revenge
C) rancorous revenge
D) negative public publicity
E) switching behavior

Question 68

Which type of switching costs involve lost time and effort?

A) opportunity switching costs
B) financial switching costs
C) relational switching costs
D) temporal switching costs
E) procedural switching costs

Question 69

Sometimes consumers get so mad at a business that they become violent or try to vandalize the business. What is the behavior called?

A) rancorous revenge
B) retaliatory revenge
C) vengeance
D) negative public publicity
E) switching behavior

Question 70

Which theory plays a role in dealing with negative publicity?

A) expectancy/disconfirmation theory
B) theory of reasoned action
C) elaboration likelihood theory
D) attribution theory
E) balance theory

Question 71

All of the following are suggested alternative courses of action for handling negative public publicity EXCEPT _____.

A) Do nothing.
B) Deny responsibility for any negative event.
C) Take responsibility for any negative events and be visible in the public eye.
D) Release information allowing the public to draw its own conclusion.
E) Spread counter information but don't identify the company as the source.

Question 72

Elaine had a problem with the computer printer she purchased, and when she called the toll-free service support number, she was told that she had to pay to speak to a service representative. She was so mad that she told all of her friends and family about the problem with the printer and the poor service she received and advised them never to buy that brand. Elaine is exhibiting which postconsumption behavior?

A) dissatisfaction
B) switching
C) negative public publicity
D) disconfirming
E) negative word-of-mouth

Question 73

Alice would like to change dentists, but she dreads the time and effort it will take to find a new one. Which type of switching costs does this represent?

A) transactional switching costs
B) temporal switching costs
C) separation switching costs
D) procedural switching costs
E) opportunity switching costs

Question 74

China Palace is a Chinese restaurant where a few customers recently suffered food poisoning. One customer was so mad that he tried to burn the restaurant down a week later. What type of behavior did this disgruntled customer engage in?

A) negative public publicity
B) complaining behavior
C) rancorous revenge
D) spiteful revenge
E) retaliatory revenge

Question 75

Relational switching costs _____.

A) involve lost time and effort from switching from one brand or service provider to another
B) consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice
C) refer to the emotional and psychological consequences of changing from one brand or service provider to another
D) are the least significant type of switching costs for consumers
E) form the greatest barrier to switching from one brand or service provider to another

Question 76

Many consumers who do online banking are reluctant to change banks because of the effort it would take to change automatic payments and online payments. The "cost" to change include the time and effort it would take to cancel old payments and set up new ones as well as the potential for missing a payment. These "costs" represent _____.

A) opportunity costs
B) barriers to switching
C) switching costs
D) barriers to entry
E) contributory costs

Question 77

Which of the following means consumers pass on negative information about a company from one person to another?

A) complaining behavior
B) negative word-of-mouth
C) rancorous revenge
D) retaliatory revenge
E) buzz marketing

Question 78

Holly was so pleased with the service she received at a new spa in her neighborhood that she told many of her friends about her experience. Holly's behavior is an example of _____.

A) confirmation
B) satisfaction
C) positive word-of-mouth
D) loyalty
E) joy

Question 79

Zander was dissatisfied with the service he received from a car repair shop, so the next time his car needed service, he went to a different place. Zander exhibited which behavior?

A) disloyalty
B) disconfirmation
C) compromise
D) switching
E) revenge

Question 80

Which of the following occurs when consumers spread information from one to another about positive consumption experiences?

A) confirmation
B) positive switching behavior
C) positive disconfirmation
D) empathy
E) positive word-of-mouth