Question 1

Henry likes to have a burger for dinner on all weekdays.He visits Fries,a fast food chain,every evening except on days when he is stuck at work,and on such occasions he orders a sandwich from the office cafeteria.The amount of time and money that he spends for burger dinners at Fries is the _____ the fast food chain gets from Henry.
A) market share
B) customer share
C) brand share
D) retail share
E) segment share

Accepted Answer

Customer share refers to the percentage of customers who choose a particular brand or chain over its competitors. In this case, Henry is a regular customer of Fries and only goes elsewhere on occasion. Therefore, the amount of time and money he spends at Fries represents their customer share. The other options (A) market share, (C) brand share, (D) retail share, and (E) segment share are not appropriate in this context.

Question 2

Which of the following characteristics of relationship quality represents the consumer's view of the company and service providers as knowledgeable and capable?
A) Competence
B) Communication
C) Equity
D) Personalization
E) Sale orientation

Accepted Answer

Competence refers to the consumer's perception of the company and service providers as knowledgeable and capable. It reflects the extent to which the consumer believes the service provider can deliver the promised service in a reliable and accurate way.

Question 3

Which of the following characteristics of relationship quality represents the perception that the buyer and seller can depend on each other?
A) Trust
B) Communication
C) Equity
D) Personalization
E) Competence

Accepted Answer

Trust is the characteristic that represents the perception that the buyer and seller can depend on each other. Communication, equity, personalization, and competence are also important characteristics of relationship quality, but they do not directly relate to the perception of dependability.

Question 4

When a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change,it is called consumer _____.
A) inertia
B) share
C) apathy
D) equity
E) loyalty

Accepted Answer

Consumer inertia refers to the tendency of a consumer to continue with a particular behavior or decision, even when superior alternatives are available. This behavior is often seen in consumers who are satisfied with their current choice or who are unwilling to invest time and effort in exploring other options. In order to break through this inertia, a stronger force, such as a new product or a significant life event, may be necessary to motivate the consumer to change. Therefore, the best choice among the options given is A) inertia.

Question 5

A firm is likely to be most vulnerable to customers' switching behavior when:
A) its customers are dissatisfied, the switching costs are low, and the firm operates in a business environment with high competitive intensity.
B) its customers are satisfied, the switching costs are high, and the firm operates in a business environment with high competitive intensity.
C) its customers are dissatisfied, the switching costs are high, and the firm operates in a business environment with low competitive intensity.
D) its customers are satisfied, the switching costs are low, and the firm operates in a business environment with low competitive intensity.
E) its customers are satisfied, the switching costs are high, and the firm operates in a business environment with low competitive intensity.

Accepted Answer

When customers are dissatisfied and the switching costs are low, they are more likely to switch to a competitor. Additionally, in highly competitive environments, there are more options for customers to switch to. Therefore, a firm is most vulnerable to customers' switching behavior when its customers are dissatisfied, the switching costs are low, and the firm operates in a business environment with high competitive intensity.

Question 6

Most of the time Richard goes to a neighborhood general store for his groceries.He does not like the place,but it is very conveniently located and he just has to walk a few minutes to get there.Richard's buying behavior with regard to the neighborhood general store can be best described as customer _____.
A) disconfirmation
B) equity
C) inertia
D) intensity
E) entropy

Accepted Answer

Richard's lack of enthusiasm for the store and his repetitive behavior indicate that he is in a state of customer inertia. He is not actively seeking out alternatives and is simply maintaining his current behavior due to the convenience factor.

Question 7

Which of the following firms would be least vulnerable to competitors?
A) A firm that offers generous return policies to its customers
B) A firm that offers attractive bargain deals to its customers
C) A firm that offers numerous loyalty programs to its customers
D) A firm that offers a unique purchasing experience to its customers
E) A firm that offers convenient purchasing experience to its customers

Accepted Answer

A firm that offers a unique purchasing experience to its customers would be least vulnerable to competitors. This is because the unique experience cannot be easily replicated by competitors, thereby creating a competitive advantage for the firm. The other options such as return policies, bargain deals, loyalty programs, and convenience can be easily copied by competitors, making the firm vulnerable to losing customers.

Question 8

Customer share represents a behavioral component that is indicative of customer _____.
A) apathy
B) equity
C) competence
D) loyalty
E) inertia

Accepted Answer

Customer share, also known as share of wallet, refers to the percentage of a customer's total purchasing in a given category that is captured by a particular company. Customers who have a high customer share are loyal to a particular company and are more likely to continue to purchase from that company in the future. Therefore, customer share is indicative of customer loyalty.

Question 9

Which of the following 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?
A) A commitment program
B) A customer share program
C) A consistency program
D) A loyalty program
E) A gift program

Accepted Answer

A loyalty program is a marketing strategy designed to encourage customers to continue doing business with a company by offering rewards or incentives for their repeat purchases. These programs keep track of a customer's purchases and once a certain level is reached, they are rewarded.

Question 10

Consumers who will do everything possible to avoid doing business with a particular marketer are called _____.
A) market mavens
B) antiloyal consumers
C) disconfirming consumers
D) laggards
E) state-oriented consumers

Accepted Answer

Antiloyal consumers are those who actively avoid doing business with a particular marketer or brand. Market mavens are consumers who have a lot of knowledge and influence in a particular market. Disconfirming consumers are those whose expectations are not met by a particular product or service. Laggards are consumers who are slow to adopt new products or technologies. State-oriented consumers are those whose purchasing decisions are influenced by their current mood or emotions.

Question 11

The portion of resources allocated to one brand from among the set of competing brands is called _____.
A) market share
B) brand share
C) customer share
D) retail share
E) segment share

Accepted Answer

The answer of The portion of resources allocated to one...

Question 12

Until 1984,American consumers had only one choice for telephone service-"Ma Bell." However,today consumers have many choices for "data" services.Consumers can choose AT&T,Verizon,CenturyLink or relay on Internet service providers like Skype.This increase in the number of service providers indicates an increase in _____.
A) competitive intensity
B) consumer inertia
C) market associability
D) consumer disconfirmation
E) selective density

Accepted Answer

The increase in the number of service providers indicates an increase in competitive intensity as there are now more options available for consumers to choose from. This competition can lead to better prices, services, and innovation as companies strive to differentiate themselves from their competitors.

Question 13

A sense of attachment,dedication,and identification with a brand or service provider is known as customer _____.
A) commitment
B) inertia
C) share
D) empathy
E) apathy

Accepted Answer

Customer commitment is defined as the degree to which a customer has an emotional and psychological attachment and identification with a particular brand or service provider. It reflects the loyalty and dedication of a customer towards the brand, resulting in long-term relationships and repeat business.

Question 14

Which of the following characteristics of relationship quality indicates that a buyer treats a seller as an individual with unique desires and requirements?
A) Competence
B) Communication
C) Equity
D) Personalization
E) Trust

Accepted Answer

The characteristic of relationship quality that indicates that a buyer treats a seller as an individual with unique desires and requirements is personalization. This means that the buyer recognizes the seller as a unique individual and treats them accordingly, tailoring their interactions and communication to the specific needs and preferences of that seller. Choice A (competence) refers to the seller's ability to deliver quality products and services, choice B (communication) refers to the quality of the communication between the buyer and the seller, choice C (equity) refers to the fairness and balance of the relationship, and choice E (trust) refers to the level of trust and confidence that each party has in the other.

Question 15

Starz Inc.,a toy manufacturer,wants to attract new customers while retaining its old customers.In which of the following conditions is Starz Inc.is likely to be most vulnerable to consumers' switching behavior?
A) When its customers are satisfied with its product offerings
B) When it operates in a business environment with high competitive intensity
C) When its largest competitor's product is priced much higher than its own
D) When it is the only product of its type in a market
E) When the cost of switching to competitors' products is high

Accepted Answer

When Starz Inc. operates in a business environment with high competitive intensity, it is likely to face a higher risk of consumers switching to competitors' products. This is because the presence of high competition means that consumers have more options to choose from, which can increase their willingness to explore and try out new products. Additionally, high competition may also intensify price wars, leading to lower profit margins and reduced brand loyalty. Therefore, Starz Inc. needs to develop effective strategies and value propositions that can differentiate itself from competitors and create a loyal customer base.

Question 16

When it comes to running shoes,Brian is completely devoted to the Nike brand.He feels that the brand defines who he is.Brian's association with running shoes from Nike is an example of customer _____.
A) equity
B) inertia
C) empathy
D) apathy
E) commitment

Accepted Answer

Brian's unwavering loyalty and emotional attachment to the Nike brand is an example of customer commitment. He identifies strongly with the brand and its products, which indicates a long-term relationship with the company.

Question 17

Talbot's clothing store offers a program where customers get a reward of $10 for every $500 spent.As part of the program,the store keeps an account of the frequency of purchases as well amount spent on each purchase by all its customers.This is an example of a _____ program.
A) commitment
B) loyalty
C) customer share
D) gift
E) consistency

Accepted Answer

This program is an example of a loyalty program, where customers are rewarded for their repeat business and are encouraged to continue shopping at the store. The program keeps a record of customers' purchases and rewards them for reaching certain spending thresholds.

Question 18

Stan has never entered into any of the Resplendent Stores,a chain of retail stores,in more than ten years.Because of a bad past experience,he harbors a particular aversion for them,and he has vowed never to shop in any of their stores.Stan is best described as a(n)_____ with respect to Resplendent Stores.
A) antiloyal consumer
B) disconfirming consumer
C) late adapter
D) laggard
E) state-oriented consumer

Accepted Answer

An antiloyal consumer is someone who has a negative emotional attachment to a particular brand or company, and deliberately avoids purchasing or using their products or services. In this case, Stan's past experience has created an aversion to Resplendent Stores, causing him to be an antiloyal consumer.

Question 19

The number of firms competing for business within a specific category is called competitive _____.
A) density
B) intensity
C) inertia
D) concentration
E) share

Accepted Answer

Competitive intensity refers to the number of firms competing for business within a specific category.

Question 20

Customer share is sometimes referred to as share of _____.
A) wallet
B) stock
C) cost
D) distribution
E) equity

Accepted Answer

Customer share is the particular percentage of customer spendings a particular company is able to acquire in comparison to its rivals. Hence, it is often referred to as share of wallet.

Quiz 15: Consumer Relationships

Which of the following characteristics of relationship quality represents the consumer's view of the company and service providers as knowledgeable and capable?

Which of the following characteristics of relationship quality represents the perception that the buyer and seller can depend on each other?

When a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change,it is called consumer _____.

A firm is likely to be most vulnerable to customers' switching behavior when:

Which of the following firms would be least vulnerable to competitors?

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

Which of the following 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?

Consumers who will do everything possible to avoid doing business with a particular marketer are called _____.

The portion of resources allocated to one brand from among the set of competing brands is called _____.

A sense of attachment,dedication,and identification with a brand or service provider is known as customer _____.

Which of the following characteristics of relationship quality indicates that a buyer treats a seller as an individual with unique desires and requirements?

Starz Inc.,a toy manufacturer,wants to attract new customers while retaining its old customers.In which of the following conditions is Starz Inc.is likely to be most vulnerable to consumers' switching behavior?

When it comes to running shoes,Brian is completely devoted to the Nike brand.He feels that the brand defines who he is.Brian's association with running shoes from Nike is an example of customer _____.

Talbot's clothing store offers a program where customers get a reward of $10 for every $500 spent.As part of the program,the store keeps an account of the frequency of purchases as well amount spent on each purchase by all its customers.This is an example of a _____ program.

The number of firms competing for business within a specific category is called competitive _____.

Customer share is sometimes referred to as share of _____.