Deck 15: Consumer Relationships

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Loyalty is a postconsumption affective reaction.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

Complainers are valuable sources of feedback for businesses.

Question 14

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

Question 15

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

Question 16

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

Question 17

Complaining is a type of postconsumption behaviour.

Question 18

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

Question 19

Switching is a possible postconsumption behaviour.

Question 20

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 21

Internet-only retailers have successfully built up relational switching costs.

Question 22

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

Question 23

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

Question 24

Opportunity switching costs involve lost time and effort.

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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 35

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

Question 36

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 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

Value plays a role in the postconsumption process.

Question 43

Which type of behaviour 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) anti-loyalty

Question 44

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

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

Question 45

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

Question 46

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

Question 47

Which of the following is NOT a suggestion for handling consumer complaints effectively?

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

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

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 term refers to the extent to which consumers believe the processes involved in processing a transaction and handling any complaints are fair?

A) marketing equity
B) customer justice
C) equity congruence
D) procedural justice

Question 54

How is a complainer different from a non-complainer?

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 non-complainer to a firm.

Question 55

Which statement best describes complaining behaviour?

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.

Question 56

Which of the following is an example of a postconsumption affective reaction?

A) complaining
B) skepticism
C) switching
D) loyalty

Question 57

Customers have a lifetime value to the firm.

Question 58

Which of the following is a postconsumption cognitive process?

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

Question 59

Which of the following is a postconsumption behaviour?

A) love
B) attachment
C) equity
D) switching

Question 60

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

Question 61

Which type of switching costs involves lost time and effort?

A) financial
B) relational
C) temporal
D) procedural

Question 62

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 includes 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. What do these "costs" represent?

A) opportunity costs
B) switching costs
C) barrier costs
D) contributory costs

Question 63

Which term refers to the situation 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) dissatisfaction

Question 64

What occurs when consumers spread information from one to another about positive consumption experiences?

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

Question 65

Which statement best describes relational switching costs?

A) They involve lost time and effort from switching from one brand or service provider to another.
B) They 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) They are the emotional and psychological consequences of changing from one brand or service provider to another.
D) They form the greatest barrier to switching from one brand or service provider to another.

Question 66

Which statement is NOT a suggested alternative course of action for handling negative public publicity?

A) Deny responsibility for any negative event.
B) Take responsibility for any negative events and be visible in the public eye.
C) Release information allowing the public to draw its own conclusion.
D) Spread counter information but don't identify the company as the source.

Question 67

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

A) procedural
B) transactional
C) relationship
D) financial

Question 68

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

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

Question 69

Which of the following plays a role in dealing with negative publicity?

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

Question 70

Angie was so embarrassed by her boyfriend's behaviour 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 type of behaviour was Angie's boyfriend demonstrating?

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

Question 71

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

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

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. Which type of postconsumption behaviour is Elaine exhibiting?

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

Question 73

Which of the following is NOT an implication of negative word-of-mouth?

A) It can hurt sales.
B) It can damage the image of the firm.
C) It can have effects that spill over to an entire industry.
D) It can increase switching costs.

Question 74

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
B) temporal
C) separation
D) procedural

Question 75

What can the result be when negative WOM spreads on a relatively large scale?

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

Question 76

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

A) complaining behaviour
B) negative word-of-mouth
C) rancorous revenge
D) buzz marketing

Question 77

Which term refers to the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another?

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

Question 78

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

A) procedural
B) transactional
C) financial
D) induction

Question 79

After Starbucks changed their loyalty reward program, Sophia was so dissatisfied with how stars were to be rewarded to loyal customers that she went to #StarbucksRewards on Twitter and tweeted "@Starbucks I'm moving to @TheCoffeeBean because their rewards are better than what you propose. Adios #StarbucksRewards." Which type of behaviour did Sophia exhibit?

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

Question 80

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 behaviour did this disgruntled customer engage in?

A) negative public publicity
B) complaining behaviour
C) rancorous revenge
D) retaliatory revenge