Deck 15: Beyond Consumer Relationships

Question 1

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

Answer 1

False

Question 2

For experiential types of services, such as fashion shopping, utilitarian value is more strongly related to customer share.

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

In the context of consumer complaints, denials should be made only when the evidence unambiguously supports the actual truth.

Question 6

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

Question 7

Consumer opinions will be more shaped by reviews for relatively unfamiliar brands compared to established brands.

Question 8

Complaining behavior occurs when a consumer actively seeks out someone to spread negative word-of-mouth.

Question 9

If companies possess the expertise to respond to negative post-consumption behaviors appropriately, the result can be a positive value experience for company and customer alike.

Question 10

Procedural switching costs involve money and emotional consequences.

Question 11

Negative avoidance emotions are most likely to precede complaining behavior.

Question 12

Sometimes consumers end up maintaining a relationship with a service provider even if they experience dissatisfaction.

Question 13

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

Question 14

The term critical incident refers to the turning point at which the customer arrives at a decision to purchase a product.

Question 15

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

Question 16

When competitive intensity is low and switching costs are high, dissatisfied consumers are almost certain to switch.

Question 17

Consumers with a weak economic orientation display lower customer share with all competitors.

Question 18

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

Question 19

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

Question 20

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

Question 21

Financial switching costs involve the loss of time and effort.

Question 22

Usually, all consumers want to put in effort into shaping the consumption experience.

Question 23

In the social media world, the key is to ignore negative news so that it fades away.

Question 24

Negative word-of-mouth (negative WOM) is said to occur when:

A) consumers feels disgusted with a company and switch to another company.
B) consumers pass on unfavorable information about a company from one to another.
C) consumers lodge complaints in company websites after having negative product experiences.
D) consumers change a pattern of behavior when a stronger force motivates them to change.

Question 25

The term _____ refers to exchanges between consumers and businesses that the consumer views as unusually negative.

A) touchpoint
B) critical incident
C) moderating variable
D) zero moment of truth

Question 26

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

Question 27

The value received from consumption depends not only on the product or service providers, but also on the customer him- or herself.

Question 28

Price-sensitive consumers become less loyal following the complaint than do those with less price sensitivity.

Question 29

Consumer complaints pay off in terms of customer retention if a store provides the compensation quickly.

Question 30

Dissatisfied consumers are more likely to complain than angry consumers.

Question 31

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

Question 32

Retailers who build up procedural switching costs usually gain true customer loyalty.

Question 33

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

Question 34

Disgust in consumers is most likely to evoke a(n) _____.

A) avoidance response
B) inertial response
C) approach response
D) confrontational response

Question 35

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

A) consumer inertia
B) customer share
C) customer commitment
D) consumer empathy

Question 36

Consumers are about twice as likely to spread positive as negative word-of-mouth (WOM).

Question 37

Negative consumer behaviors like complaining usually receive less attention than positive consumer behaviors such as positive word-of-mouth.

Question 38

Starz Inc. manufactures popular game CDs for a particular gaming console. Starz Inc. is most likely to be vulnerable to consumers' switching behavior if the competitor's product is:

A) cheaper and uses the same gaming console.
B) more expensive and uses a different gaming console.
C) cheaper but uses a different gaming console.
D) more expensive but uses the same gaming console.

Question 39

Disgust evokes an approach response, and as a result, a disgusted consumer is likely to complain.

Question 40

Consumers who spread negative word-of-mouth (negative WOM) without complaining to the company itself are particularly likely to never do business with that company again.

Question 41

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

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

Question 42

Sheri, a socialite, received bad publicity for her recent choice of evening wear. As a result, she decided to change designers. However, when she visits her new designer for the first time, she missed the camaraderie she shared with her previous designer. In the given scenario, Sheri is experiencing the _____.

A) procedural switching cost
B) relational switching cost
C) transactional switching cost
D) financial switching cost

Question 43

Customer share is sometimes referred to as _____.

A) share of wallet
B) share of stock
C) an overhead cost
D) a variable cost

Question 44

Stan has not shopped at Resplendent Stores, a chain of retail stores, in more than two years. Because of a bad experience at the store, he dislikes the store and has vowed never to shop there. In the given scenario, which of the following is true of Stan?

A) He is engaged in complaining behavior.
B) He is exacting rancorous revenge.
C) He has become an antiloyal consumer.
D) He has become afflicted with consumer inertia.

Question 45

_____ results from a cognitive comparison between a consumer's expectations and the consumer's actual performance perception.

A) Disconfirmation
B) Attribution
C) Disintegration
D) Consumer inertia

Question 46

Which of the following is true of antiloyal customers?

A) They do not buy from the same marketer even if they have had a good experience.
B) They do everything possible to avoid doing business with a particular marketer.
C) They try different marketers but do not express any opinion about their experiences.
D) They frequently try other marketers but keep coming back to a particular marketer.

Question 47

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 costs
B) Relational switching costs
C) Transactional switching costs
D) Financial switching costs

Question 48

The inability of consumer satisfaction/dissatisfaction (CS/D) to predict the future purchasing behavior of consumers is attributed to _____.

A) retributive costs
B) switching costs
C) inequity perceptions
D) equity perceptions

Question 49

In which of the following services will utilitarian value be more strongly related to customer share than hedonic value?

A) Salon services
B) Spa treatment
C) Dental treatment
D) Fine dining services

Question 50

Identify a true statement about loyalty programs in the United States.

A) They more often work by offering on-the-spot discounts.
B) They seem to work better when the reward is offered in the future.
C) They work best on consumers with a strong economic orientation.
D) They work best on consumers who are bargain shoppers.

Question 51

Sakura, a recently launched sedan, has been rated by Consumer Reports, a nonprofit organization, as the most fuel-efficient sedan of 2015. Such a rating by an independent organization is called a(n):

A) celebrity endorsement.
B) influencer endorsement.
C) brand-advocate endorsement.
D) third-party endorsement.

Question 52

Holly was so pleased with the service she received at the new spa in her neighborhood that she told many of her friends about her pleasant experience. Which of the following post-consumption behaviors best describes Holly's behavior?

A) Confirmatory bias
B) Consumer inertia
C) Positive word-of-mouth
D) Positive disconfirmation

Question 53

When the La' ChamoTea outlet near Ben's place closed, he started going to the next nearest outlet, which is 20 blocks from his house, just to get his daily morning dose of chamomile tea. Ben's behavior toward La' ChamoTea is an example of _____.

A) customer share
B) consumer inertia
C) consumer switching
D) customer commitment

Question 54

Which of the following statements is true in the context of consumer loyalty?

A) A consumer with a strong economic orientation displays higher customer share with all competitors.
B) The certainty of a lengthy stream of revenues is much more for a customer acting only on inertia.
C) A firm that concentrates on repeated behavior alone, perhaps by always being convenient, can do well but remains vulnerable to competitors.
D) A customer's contribution on the equity side of the equation remains the same irrespective of whether or not a customer is a truly committed or acting on inertia alone.

Question 55

Until a few decades ago, American consumers had only one choice for telephone services. Today, however, consumers can choose from many telephone and data services providers. This increase in the number of service providers indicates an increase in _____.

A) customer share
B) share of wallet
C) competitive intensity
D) consumer inertia

Question 56

Which of the following is true of preferred customer perks?

A) The customers receiving these perks are disproportionately profitable for the company.
B) Giving away these perks is not particularly profitable for the company in the long run.
C) Companies are usually quite indiscreet in providing these perks in order to attract more customers.
D) The customers receiving these perks do not talk about them lest other customers get angry.

Question 57

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

A) Financial switching costs
B) Emotional switching costs
C) Procedural switching costs
D) Relational switching cots

Question 58

_____ lead to an affective reaction most conventionally represented by consumer satisfaction or dissatisfaction.

A) Post-consumption cognitions
B) Prepurchase decision efforts
C) Confirmation biases
D) Alternative evaluations

Question 59

Which of the following is true of complaining behavior in customers?

A) An angry customer is more likely to complain than a disgusted consumer.
B) A collectivist customer is more likely to complain than an individualist consumer.
C) Disgusted consumers are very likely to complain.
D) Consumers high in price sensitivity are less likely to complain.

Question 60

Café da Manhã, a small café, enjoys business from many loyal customers. When there is news of another café opening in the next block, the management of the café decides to take action to preempt the competition. Which of the following actions by the management of Café da Manhã is most likely to ensure that its customers keep coming back to the café?

A) Completely revamping its menu
B) Introducing a loyalty card program
C) Focusing solely on gratifying the needs of its customers
D) Reducing the price of its most popular items

Question 61

A healthy relationship between a consumer and a marketer:

A) encourages switching as routine purchases become boring.
B) increases the selling effort required by the marketer to keep the consumer.
C) generates inertia in consumers.
D) makes the decision-making process simpler for the consumer.

Question 62

A few customers at Mackarel, a seafood restaurant, recently suffered from food poisoning and were hospitalized. One of those customers was so angry that he tried to burn the restaurant down. This action of the disgruntled customer is an example of _____.

A) retaliatory revenge
B) procedural justice
C) retributive justice
D) restorative revenge

Question 63

In the context of consumer share, which of the following statements is true of value and switching?

A) Hedonic value is more strongly related to customer share for functional types of services.
B) Customers who switch service providers are more likely to be loyal if they experience comparatively increased hedonic value.
C) Utilitarian value plays a larger role in creating consumer commitment.
D) For experiential types of services, such as fashion shopping, utilitarian value is more strongly related to customer share.

Question 64

When it comes to running shoes, Brian is completely devoted to Footfall, a sports shoe brand. He feels that the brand defines him. Brian's association with Footfall's running shoes is an example of _____.

A) consumer commitment
B) customer share
C) consumer inertia
D) consumer switching

Question 65

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

A) Switching costs
B) Fixed costs
C) Variable costs
D) Operating costs

Question 66

Which of the following is true of loyalty cards or programs?

A) They do not work in a two-tiered pricing system.
B) They cannot tell much about customer groups' demographics.
C) They can be used to learn more about customer groups' shopping patterns.
D) They are most likely to change the loyalty of consumers with a strong economic orientation.

Question 67

Elaine's computer printer broke down shortly after she purchased it. When she called the toll-free service number, she was told that she had to pay to speak to a service representative. It made her so unhappy that she told her friends and family about the problems she faced and advised them against buying that brand. Elaine's behavior in the given scenario best exemplifies _____.

A) a retributive measure
B) distributive revenge
C) procedural justice
D) negative word-of-mouth

Question 68

In the context of the outcomes of consumption, equity perceptions are:

A) cognitive reactions to the environment around oneself.
B) cognitions of two contrary events at the same time.
C) cognitive reactions related to fairness or justice.
D) cognitions about why the performance of a product turned out as it did.

Question 69

Richard purchases his groceries from the neighborhood general store. He does not particularly like the store, but he goes there because it is very conveniently located. In the given scenario, Richard's buying behavior can be best described as _____.

A) consumer addiction
B) positive disconfirmation
C) consumer inertia
D) negative disconfirmation

Question 70

Alice has always used Hablar cell phones. She is very comfortable with the user interface of Hablar phones. Even though she would like to buy a smartphone of a different brand, she is reluctant to get one because of the effort and time it would take for her to get acquainted with a different user interface. In the context of switching behavior, Alice is primarily worried about _____.

A) transactional switching costs
B) financial switching costs
C) procedural switching costs
D) relational switching costs

Question 71

Henry likes the sandwiches from an Italian food truck near his office. He walks to the truck almost every day for lunch. However, the days he is very busy at work, he orders a sandwich from his office cafeteria. The amount of time and money that he spends to get lunch from the food truck is an example of _____ the truck gets from Henry.

A) segment share
B) retail share
C) customer share
D) market share

Question 72

Ruth had recently bought an expensive smartphone from a leading brand. However, within a few months of purchase, the phone started malfunctioning. Ruth was so upset that she posted a scathing review on a popular complaint website. Soon, other consumers also started sharing their poor experiences with the same brand. The news went viral on social media. The given scenario is an example of _____.

A) consumer inertia
B) consumer cognitive dissonance
C) retaliatory revenge
D) negative public publicity

Question 73

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

A) Restorative justice
B) Retributive justice
C) Distributive justice
D) Procedural justice

Question 74

Which of the following statements is true of complaining behavior?

A) Negative avoidance emotions like disgust are most likely to precede complaining behavior.
B) Consumers who are more price sensitive are less likely to complain than consumers who are less price sensitive.
C) Consumers from individualist cultures are less likely to complain than consumers from collectivist cultures.
D) Negative approach emotions like anger are most likely to precede complaining behavior.

Question 75

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

A) Personalization
B) Communication
C) Trust
D) Equity

Question 76

Matt is unhappy with the Luisteren music player that he bought recently. He mentions it to his friend Christine and suggests that she consider other brands. In the given scenario, Matt's behavior illustrates _____.

A) positive disconfirmation
B) negative word-of-mouth
C) confirmatory bias
D) switching behavior

Question 77

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

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

Question 78

A firm is most likely to be vulnerable to satisfied customers' switching behavior when the switching costs are:

A) low and the firm operates in a business environment with high competitive intensity.
B) high and the consumer dissatisfaction is low.
C) high and the firm operates in a business environment with low competitive intensity.
D) low and the consumer satisfaction is high.

Question 79

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

A) Referencing
B) Switching
C) Consumer inertia
D) Complaining behavior

Question 80

Zack went to a restaurant with his friends. The waiter took long to bring their order, and hence, the food that was served was cold. When Zack complained, the waiter did not respond appropriately. As a result, Zack started yelling at him and demanded to see the manager. Zack's behavior at the restaurant is an example of _____.

A) bounded rationality
B) rancorous revenge
C) procedural justice
D) cognitive dissonance