Deck 15: Consumer Relationships

Question 1

Anger evokes an avoidance response,and as a result,an angry consumer avoids a potential confrontation and simply goes away.

Answer 1

False
Disgust evokes an avoidance response,and as a result,a disgusted consumer avoids a potential confrontation and simply goes away.Negative approach emotions like anger are most likely to precede complaining behavior.

Question 2

Negative word-of-mouth (negative WOM)takes place when consumers pass on negative information about a company from one to another.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Consumer complaints pay off for the marketers as well as for the consumers.

Question 5

The term critical incident refers to exchanges between consumers and business that the consumer views as unusually negative.

Question 6

Customers who believe a firm has adequately responded to some negative critical incident are likely to become more loyal.

Question 7

Postconsumption cognitions lead to an affective reaction most conventionally represented by consumer satisfaction or dissatisfaction (CS/D).

Question 8

Consumers high in price sensitivity are less likely to complain than consumers with some indifference about the price paid for a service.

Question 9

Dissatisfied consumers are more likely to complain than angry consumers.

Question 10

Negative postconsumption behaviors can turn into positive value experiences if firms manage them properly.

Question 11

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

Question 12

If a furious consumer becomes violent or tries to vandalize the business,it is known as rancorous revenge.

Question 13

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

Question 14

All dissatisfied customers are complainers.

Question 15

Perceptions of justice are included within the equity cognitions.

Question 16

A disgusted or hopeless consumer is more likely to complain than an angry consumer.

Question 17

Negative approach emotions like anger are most likely to precede complaining behavior.

Question 18

Procedural justice refers to the extent that consumers believe the processes involved in processing a transaction,performing a service,or handling a complaint is fair.

Question 19

Retaliatory revenge is when a consumer yells,insults,and makes a public scene in an effort to harm the business.

Question 20

Price sensitive consumers become more loyal post complaint than those with less price sensitivity.

Question 21

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 22

Financial 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 23

In the social media world,the key is to respond quickly before negative news goes viral.

Question 24

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

Question 25

Switching costs are the costs associated with changing from one choice to another.

Question 26

Market share is also known as share of wallet.

Question 27

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

Question 28

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

Question 29

When customers don't switch,they repeat their purchase behavior over again.

Question 30

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

Question 31

When competitive intensity is high and switching costs are low,a company is vulnerable to consumers who will switch providers even when customers are satisfied.

Question 32

Procedural switching costs involve money and emotional consequences.

Question 33

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

Question 34

Retailers who build up procedural switching costs may gain temporary repeat purchase behavior,but they fail to establish the connection with the customer that wins them true loyalty.

Question 35

Consumers who spread negative WOM without complaining to the company itself are particularly likely not to ever do business with that company again.

Question 36

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

Question 37

A 3rd Party Endorsement represents one form of publicity in which an ostensibly objective outsider (neither the customer nor business)provides publicly available purchase recommendations.

Question 38

Online reviews influence the opinions for relatively established brands much more than they do for unfamiliar brands.

Question 39

If the relationship with the brand is strong,accepting negative information diminishes the consumer's self-concept.

Question 40

Denials should be made only when the evidence unambiguously supports the actual truth.

Question 41

For functional types of services,hedonic value is more strongly related to customer share than is utilitarian value.

Question 42

____ justice refers to the extent that consumers believe the processes involved in processing a transaction,performing a service or handling a complaint is fair.

A) Restorative
B) Retributive
C) Distributive
D) Retaliatory
E) Procedural

Question 43

Customers who have switched service providers are less likely to become loyal customers when they experience increased hedonic value compared to the previous service provider.

Question 44

A firm that concentrates on repeated behavior alone,perhaps by always being convenient,can do well but remains more vulnerable to competitors.

Question 45

For experiential types of services,utilitarian value is more strongly related to customer share than is hedonic value.

Question 46

True loyalty involves both a continuing series of interactions and feelings of attachment between the customer and the firm.

Question 47

Perceptions of justice are included within the _____ cognitions.

A) spatial
B) numerical
C) equity
D) comparative
E) qualitative

Question 48

Which of the following terms refers to exchanges between consumers and business that the consumer views as unusually negative?

A) Disconfirmation incident
B) Critical incident
C) Peripheral incident
D) Significant incident
E) Disintegrative incident

Question 49

When relationship quality is high,the prospects for a continued series of mutually valuable exchanges exist.

Question 50

Which of the following is true about complaining behavior?

A) All customers reporting dissatisfaction complain.
B) Negative approach emotions like anger are most likely to precede complaining behavior.
C) Dissatisfied consumers are more likely to complain than angry consumers.
D) Disgusted consumers are more likely to complain than angry consumers.
E) Price-sensitive consumers are less likely to complain than those who are not price sensitive.

Question 51

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

A) retaliatory
B) rancorous
C) restorative
D) distributive
E) procedural

Question 52

A healthy relationship between a consumer and a marketer enhances value both for the consumer and the marketer.

Question 53

Postconsumption cognitions lead to an affective reaction most conventionally represented by consumer _____.

A) confirmation or disconfirmation
B) association or disassociation
C) excitement or ignorance
D) satisfaction or dissatisfaction
E) agreement or disagreement

Question 54

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

Question 55

How is a complainer different from a noncomplainer?

A) Compared to a complainer, A noncomplainer is more likely to become satisfied with company intervention.
B) Compared to a noncomplainer, a complainer is more likely to return following the exchange.
C) Compared to a noncomplainer, a complainer is less likely to tell others when a company performs poorly.
D) A complainer is not as valuable as a noncomplainer to a firm.
E) A complainer is more likely to be experiencing disgust than a noncomplainer.

Question 56

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

Question 57

Which of the following types of behaviors occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event?

A) Complaining behavior
B) Disconfirming behavior
C) Switching behavior
D) Antiloyal behavior
E) Satisficing behavior

Question 58

Disgust evokes a(n)_____ response.

A) approach
B) freeze
C) avoidance
D) startle
E) fight

Question 59

Consumers with a weak economic orientation display lower customer share with all competitors instead choosing to shop in the place with the current best offer.

Question 60

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 61

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?

A) Infiltrating
B) Hoarding
C) Shilling
D) Switching
E) Referencing

Question 62

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

A) Self-evaluation maintenance theory
B) Theory of reasoned action
C) Elaboration likelihood theory
D) Attribution theory
E) Balance theory

Question 63

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?

A) Procedural switching cost
B) Transactional switching cost
C) Relational switching cost
D) Financial switching cost
E) Rational switching cost

Question 64

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

A) Negative disconfirmation
B) Negative referencing
C) Negative word-of-mouth
D) Negative association
E) Negative attribution

Question 65

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

A) Confirmation
B) Switching behavior
C) Positive disconfirmation
D) Positive attribution
E) Positive word-of-mouth

Question 66

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?

A) Confirmation
B) Positive attribution
C) Positive word-of-mouth
D) Negative disconfirmation
E) Switching

Question 67

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.

A) infiltrating
B) shilling
C) switching
D) hoarding
E) temporal

Question 68

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?

A) Procedural switching cost
B) Financial switching cost
C) Relational switching cost
D) Rational switching cost
E) Affective switching cost

Question 69

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.

A) procedural
B) restorative
C) rancorous
D) distributive
E) retaliatory

Question 70

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?

A) Loyalty
B) Switching
C) Avoidance
D) Disconfirmation
E) Negative word-of-mouth

Question 71

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

A) rancorous
B) retaliatory
C) restorative
D) distributive
E) procedural

Question 72

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

A) Switching
B) Transfer
C) Conversion
D) Shilling
E) Infiltrating

Question 73

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:

A) procedural switching cost.
B) transactional switching cost.
C) financial switching cost.
D) relational switching cost.
E) rational switching cost.

Question 74

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?

A) Transactional switching costs
B) Temporal switching costs
C) Financial switching costs
D) Procedural switching costs
E) Relational switching costs

Question 75

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.

A) procedural
B) retaliatory
C) rancorous
D) distributive
E) restorative

Question 76

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

A) infiltrating
B) switching
C) hoarding
D) shilling
E) culture jamming

Question 77

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

A) community marketing
B) comparative advertising
C) a cross-promotion
D) a 3rd party endorsement
E) cooperative marketing

Question 78

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

A) Rational switching cost
B) Financial switching cost
C) Relational switching cost
D) Temporal switching cost
E) Procedural switching cost

Question 79

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?

A) Procedural switching cost
B) Financial switching cost
C) Relational switching cost
D) Transactional switching cost
E) Rational switching cost

Question 80

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

A) negative public publicity
B) product recalls
C) negative attribution
D) negative disconfirmation
E) confirmation