Question 1

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

Accepted Answer

Positive word-of-mouth occurs when consumers spread information from one to another about positive consumption experiences.

Question 2

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

Accepted Answer

Switching costs are the costs associated with changing from one choice, such as a brand, retailer or service provider, to another. These costs can include the time and effort it takes to research and evaluate alternatives, the cost of terminating an existing relationship, and the potential risks and uncertainties associated with making a change. Understanding switching costs is important for businesses, as they can use this knowledge to develop strategies that encourage customer loyalty and discourage defection to competitors.

Question 3

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

Accepted Answer

Attribution theory explains how people interpret and make judgments about events and behaviors, including those related to negative publicity and who is responsible for it. Understanding how customers and stakeholders attribute negative events to a company or individual can help in developing strategies for managing negative publicity.

Question 4

Alice has always used Nokia phones since the time she got herself her first phone.She is very comfortable with the user interface the brand provides.Even though she would like to buy a Smartphone from a different brand,she is worried about the effort and time it would take her to get acquainted to a different user interface.Which of the following types of switching costs does this represent?

Accepted Answer

This represents procedural switching costs as Alice is worried about the effort and time it would take her to get acquainted to a different user interface.

Question 5

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 pleasant experience.Which of the following postconsumption behaviors best describes Holly's behavior?

Accepted Answer

Holly's behavior best describes positive word-of-mouth, which is the act of a consumer sharing positive experiences and opinions about a product or service with others.

Question 6

When consumers get so mad at a business that they become violent or try to vandalize the business,it is called _____ revenge.

Accepted Answer

Retaliatory revenge is the appropriate choice, as it refers to a consumer's act of violence or vandalism against a business in response to their dissatisfaction or anger towards the business. Rancorous refers to bitterness or resentment, which may or may not lead to revenge. Restorative, distributive, and procedural are not relevant to the context.

Question 7

When Greg's house was burglarized,he decided to install a new home security system.However,when he learned that an installation would cost him $1000,he decided against it.The cost for the installation is an example of a:

Accepted Answer

The cost of installation is a financial switching cost, as it involves a monetary expense that must be paid in order to switch to the new security system.

Question 8

Which of the following types 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?

Accepted Answer

Financial switching costs refers to the monetary outlay necessary for the consumer to switch to a new product. This includes costs related to purchasing the new product, disposing of the old one, or paying penalties for early termination of contracts. Learning how to use the new product and obtaining value from it is not a financial cost, but rather a procedural switching cost.

Question 9

A form of publicity in which an ostensibly objective outsider (neither the customer nor business)provides publicly available purchase recommendations is known as _____.

Accepted Answer

A 3rd party endorsement refers to when an impartial outsider provides recommendations about a product or business, which can be used as a form of publicity. This can include product reviews, endorsements from industry experts, or testimonials from satisfied customers. The third party endorsement is seen as more credible and trustworthy than self-promotion by the brand or business.

Question 10

When Angie went out for dinner with Zack,her boyfriend,she was embarrassed with his behavior.Zack complained when the waiter brought out the wrong order,but the waiter did not respond appropriately to his complaint.As a result,Zack started yelling at him,calling him names,and demanded to see the manager.The other diners stared at them and Angie just wanted him to stop behaving like that.Zack's behavior at the restaurant is an example of _____ revenge.

Accepted Answer

The answer of When Angie went out for dinner with...

Question 11

_____ takes place when consumers pass on negative information about a company from one to another.

Accepted Answer

Negative word-of-mouth refers to consumers passing on negative information about a company to others. Negative disconfirmation refers to a situation where a consumer's expectations are not met by a company, while negative referencing, negative association, and negative attribution are not specific types of consumer behavior.

Question 12

A consumer chooses a competing choice,rather than a previously purchased choice,on the next purchase occasion.This behavior is called _____.

Accepted Answer

This behavior is commonly referred to as switching, where a consumer switches to a competing product instead of purchasing the one they previously bought. This can be a result of various factors such as dissatisfaction with the previously purchased product or the availability of a better alternative.

Question 13

Many consumers who use online banking facilities are reluctant to change banks because of the effort it would take to change automatic and online payment accounts.The change requires a lot of hassle,including time and effort to cancel old accounts and setting up new ones.There is also the probability of missing bill payments altogether.The costs associated with such liabilities explain the customers' reluctance to change.These costs are called _____ costs.

Accepted Answer

The described costs are associated with switching banks and are referred to as switching costs.

Question 14

Which of the following types of switching costs involves lost time and effort?

Accepted Answer

The answer of Which of the following types of switching...

Question 15

A few customers at China Palace,a Chinese restaurant,recently suffered from food poisoning and were admitted in the hospital.One of these customers was so angry that he tried to burn the restaurant down a week later after the food-poisoning incident.This disgruntled customer was engaged in _____ revenge.

Accepted Answer

The customer's attempt to burn down the restaurant is an act of revenge, specifically retaliatory revenge, as it is in response to the perceived harm caused by the food poisoning incident.

Question 16

When Sheri,a socialite,got some bad publicity for her recent choice of evening wear,she decided to change designers.However,when Sheri visited her new designer for the first time,she missed the camaraderie and the easy banter she used to share with Margo,her previous designer.Which of the following types of switching costs was being experienced by Sheri?

Accepted Answer

Sheri is experiencing relational switching costs, as she misses the relationship and easy banter she had with her previous designer, Margo.

Question 17

Elaine had a problem with the computer printer she purchased.When she called the toll-free service support number,she was told that she had to pay to speak to a service representative.It made her so unhappy 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.According to the information given in this case,which of the following postconsumption behaviors best describes Elaine's behavior?

Accepted Answer

Elaine's behavior of telling all her friends and family about the problem and advising them never to buy that brand is an example of negative word-of-mouth behavior.

Question 18

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

Accepted Answer

When negative WOM spreads on a relatively large scale, it can result in negative public publicity, which can be harmful to the reputation of the company and its products. This can lead to a decrease in sales and a loss of trust among customers.

Question 19

Carla was unhappy with her haircut.The next time she wanted a haircut,she went to a different hairstylist who Carla thought was more competent than her previous stylist.From a consumer behavior perspective,which of the following terms best describe Carla's behavior?

Accepted Answer

Carla switched from her previous hairstylist to a new one, indicating switching behavior.

Question 20

Which of the following types of switching costs refers to the emotional and psychological consequences of changing from one brand/retailer/service provider to another?

Accepted Answer

Relational switching costs refer to the emotional and psychological consequences of changing from one brand/retailer/service provider to another. It includes factors such as trust, familiarity, personalized service, loyalty programs, etc.

Quiz 15: Consumer Relationships