Question 1

It is usually more expensive to retain an existing customer than to recruit a new one.

Accepted Answer

It is generally cheaper to retain an existing customer due to the lower marketing and sales costs involved, compared to the higher costs of acquiring a new customer.

Question 2

There is a perfect relationship between customer satisfaction and customer retention.

Accepted Answer

While there is a correlation between customer satisfaction and customer retention, the relationship is not perfect. Other factors such as brand loyalty, availability of alternatives, and price sensitivity can also significantly influence customer retention.

Question 3

Customer delight comes when customers are satisfied completely.

Accepted Answer

Customer delight occurs when a business exceeds customer expectations to a significant degree, leading to the customer feeling completely satisfied or even pleasantly surprised by the service or product quality.

Question 4

Although satisfaction influences customer retention, it has little influence on word-of-mouth or word-of-mouse communication.

Accepted Answer

Satisfaction significantly influences both word-of-mouth and word-of-mouse communication, as satisfied customers are more likely to share positive experiences with others both offline and online.

Question 5

It has been suggested by some that consumers' willingness to recommend a product to others is a better indicator of their loyalty to the product than what it a continue to repurchase the same product.

Accepted Answer

Consumer willingness to recommend a product often reflects a higher level of satisfaction and emotional connection with the brand, which can be a stronger indicator of loyalty than simply repurchasing, as repurchases can be influenced by factors like convenience or lack of alternatives.

Question 6

Although dissatisfaction is an essential prerequisite for complaint behavior, not every dissatisfied customer will complain.

Accepted Answer

Dissatisfaction is a key factor that can lead to complaint behavior, but not all dissatisfied customers choose to voice their complaints due to various reasons such as perceived effort, expected outcomes, or personal attitudes towards complaining.

Question 7

Companies should encourage dissatisfied customers to voice their concerns because those who keep silent are more likely to take their business elsewhere.

Accepted Answer

Dissatisfied customers who voice their concerns give companies the opportunity to address and rectify issues, potentially retaining their business. Silent dissatisfied customers are more likely to leave without giving the company a chance to improve their experience.

Question 8

In most cases, consumers are very satisfied with the way companies handled their complaints.

Accepted Answer

Studies and consumer reports often indicate that a significant portion of consumers are dissatisfied with how companies handle their complaints, citing issues such as slow response times, unresolved problems, and poor customer service.

Question 9

Surprisingly, consumers' product satisfaction has little influence on their price sensitivity.

Accepted Answer

Consumers' product satisfaction significantly influences their price sensitivity; higher satisfaction often leads to lower price sensitivity as consumers are willing to pay more for products they perceive as high quality or highly satisfying.

Question 10

Beyond understanding the post-consumption evaluations of their own customers, companies may also find it useful to understand these evaluations of their competitors' customers.

Accepted Answer

Understanding the post-consumption evaluations of competitors' customers can provide valuable insights into competitors' strengths and weaknesses, helping a company to improve its own offerings and strategies.

Question 11

Consumers' satisfaction with a company's products is important because this ultimately influences the company's value to shareholders.

Accepted Answer

Consumer satisfaction directly impacts repeat business, brand loyalty, and word-of-mouth marketing, all of which can significantly affect a company's revenue and, in turn, its value to shareholders.

Question 12

According to the expectancy disconfirmation model, satisfaction depends on a comparison of pre-purchase expectations to actual outcomes.

Accepted Answer

The expectancy disconfirmation model posits that consumer satisfaction is determined by the discrepancy between a consumer's pre-purchase expectations and the actual performance of the product or service. If the actual experience exceeds expectations, positive disconfirmation occurs, leading to satisfaction. Conversely, if the experience falls short of expectations, negative disconfirmation happens, resulting in dissatisfaction.

Question 13

If the product delivers an outcome which is less than expected, positive disconfirmation occurs.

Accepted Answer

Positive disconfirmation occurs when the product or service's performance exceeds expectations, not when it is less than expected.

Question 14

Positive disconfirmation exists when the product provides more than expected.

Accepted Answer

Positive disconfirmation occurs when a product or service exceeds the expectations of the consumer, leading to a higher level of satisfaction.

Question 15

Confirmation takes place when the product's performance matches expectations.

Accepted Answer

Confirmation occurs when a product's actual performance meets or aligns with the consumer's expectations, leading to satisfaction.

Question 16

Both regret and rage are possible when consumers experience negative disconfirmation.

Accepted Answer

Negative disconfirmation occurs when a product or service fails to meet a consumer's expectations, leading to feelings of regret for the purchase decision and rage due to unmet expectations and perceived injustice or loss.

Question 17

By setting high expectations, companies increase the odds of consumers being satisfied.

Accepted Answer

Setting high expectations can lead to disappointment if the product or service does not meet those expectations, thereby reducing consumer satisfaction.

Question 18

Simply participating in a customer survey can make consumers feel more satisfied.

Accepted Answer

Participating in customer surveys can give consumers a sense of being heard and valued by the company, which can enhance their overall satisfaction by making them feel like their opinions matter and can influence the brand or product.

Question 19

Which of the following is a way for businesses to sell more of their product?

Accepted Answer

Each option describes a strategy to increase sales: expanding the customer base (A), encouraging higher usage per occasion (B), and increasing the frequency of consumption (C).

Question 20

User and nonuser are terms used to distinguish between:

Accepted Answer

User and nonuser typically refer to those who consume a product and those who do not, respectively. This distinction is important for understanding market segmentation and targeting strategies.

Quiz 6: Post-Purchase Processes: Consumption and Post-Consumption Evaluations