cb chapter 18

Pam and her friends ate at a new Italian restaurant, and the food, service, and ambiance exceeded their expectations. They all decided that this was the only Italian restaurant they will ever go to again in their town. This is an illustration of a. relationship marketing. b. extended decision making. c. commitment. d. nonsatisfaction. e. customer value.

c. commitment.

Which of the following is FALSE regarding the way in which disposition decisions can affect a firm's marketing strategy? The United States is a completely throwaway society, and consumers are willing to purchase new products without concern for waste. Frequent decisions by consumer to sell, trade, or give away used products results in a large used-product market that can reduce the market for new products. Environmentally sound disposition decisions benefit society as a whole and thus the firms that are part of that society. For most durable goods, consumers are reluctant to purchase a new item until they have "gotten their money's worth" from the old one. Disposition sometimes must occur before acquisition of a replacement because of space or financial limitations.

The United States is a completely throwaway society, and consumers are willing to purchase new products without concern for waste.

Expenses associated with advertising, establishing a new account, and mailing catalogs are examples of A. switching costs. B. churn. C. acquisition costs. D. contribution costs. E. opportunity costs.

C. acquisition costs.

A brand whose perceived performance falls below expectations generally produces A. fear. B. dissatisfaction. C. satisfaction. D. nonsatisfaction. E. elation.

B. dissatisfaction.

The emotional response that owning or using the product or outlet provides is known as A. consummatory performance. B. symbolic performance. C. instrumental performance. D. affective performance. E. direct performance.

D. affective performance.

Why must manufacturers design products with both the primary purpose and other potential uses in mind? A. consumers demand it B. competition requires it C. to be able to promote secondary uses D. stringent product liability laws E. to save on research and development costs

D. stringent product liability laws

Sandy uses online banking, and her bank charges her $4.99 per month. However, she has seen ads for a competing bank offering free online banking services. She'd like to switch, but she realized that it might be difficult to do since she has several of her bill payments set up as automatic debits. The cost of changing to another bank represents Sandy's A. committed costs. B. incurred costs. C. effort costs. D. switching costs. E. balancing costs.

D. switching costs.

Monique is buying a new coat for the winter. While she is concerned with how well the coat will keep her warm, she is also concerned with how stylish it will make her look. Her concern for stylishness represents which dimension of product performance? A. consummatory B. affective C. instrumental D. symbolic E. direct

D. symbolic

Factors such as information quality, navigation, price, merchandise availability, purchase process, and order tracking are part of which dimension in online satisfaction and dissatisfaction? A. security and privacy B. fulfillment and reliability C. customer service D. website design and interaction E. All of these choices are correct.

D. website design and interaction

Which of the following is NOT a possible outcome once a consumer is satisfied? A. committed customer B. discontinued use C. repeat purchases D. increased use E. All of the above are possible outcomes.

E. All of the above are possible outcomes.

A consumer's decision of whether or not to take action when he or she is dissatisfied is a function of which of the following? A. importance of the purchase to the consumer B. ease of taking action C. consumer's existing level of overall satisfaction with the brand or outlet D. characteristics of the consumer involved E. All of these choices are correct.

E. All of these choices are correct.

Customer complaints communicated directly to the company and no one else are important because A. they can alert the firm to problems. B. enable problems to be solved. C. neutralize negative WOM. D. enable dissatisfied customers to be more satisfied. E. All of these choices are correct.

E. All of these choices are correct.

Which of the following is a key element of relationship marketing? A. Customizing the relationship to the individual customer. B. Pricing in a manner to encourage loyalty. C. Augmenting the core service or product with extra benefits. D. Marketing to employees so that they will perform well for customers. E. All of these choices are correct.

E. All of these choices are correct.

Which of the following is a source of increased customer profitability over time? A. increased sales volume B. lower costs C. referrals D. price premium E. All of these choices are correct.

E. All of these choices are correct.

The term used to refer to turnover in a firm's customer base is A. churn. B. defection rate. C. attrition rate. D. turn ratio. E. turnover.

A. churn.

An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is called_____ A. relationship marketing. B. personal marketing. C. internal marketing. D. formal marketing. E. acquisition marketing.

A. relationship marketing.

Marriott Rewards customers earn points whenever they stay at any Marriott property. Louis is in this program, and he travels quite a bit because he works in sales. He usually stays at a Courtyard by Marriott, and when he walks into the lobby there is a sign by the desk welcoming him by name as well as other Marriott Rewards customers who might be staying there. This ongoing relationship between Louis and Marriott is an example of A. relationship marketing. B. internal marketing. C. personal marketing. D. formal marketing. E. acquisition marketing.

A. relationship marketing.

Which of the following is NOT a key element of relationship marketing? A. standardize the relationship across customers B. pricing in a manner to encourage loyalty C. marketing to employees so that they will perform well for customers D. augmenting the core service or product with extra benefits E. developing a core service or product around which to build a customer relationship

A. standardize the relationship across customers

Which of the following is an alternative once a consumer has decided to get rid of a product? sell it give it away loan it to someone throw it away All of these choices are correct.

All of these choices are correct.

Which of the following is true regarding word-of-mouth (WOM)? A. Consumers do not give WOM much merit, especially negative WOM. B. Consumers trust WOM more than many other sources. C. Satisfaction yields more WOM than does dissatisfaction. D. WOM is a minor factor in consumer behavior. E. Marketers are not concerned about WOM.

B. Consumers trust WOM more than many other sources

Joyce will only drink Pepsi, and she feels an emotional attachment to it. That is the brand she was brought up on and is the one she continues to drink every day. Joyce is exhibiting A. brand equity. B. brand loyalty. C. brand leverage. D. brand image. E. brand bias.

B. brand loyalty.

George has used the same company for his car and home insurance for over 20 years. Any claim he has made has been handled fairly and quickly. A major hurricane came through his area causing many individuals, including George, and business owners to lose everything. While he was hearing about so many insurance claim nightmares, he knew his company would come through because he trusts this company. George is an example of a(n) A. satisfied buyer. B. committed customer. C. repeat purchaser. D. affective customer. E. total buyer.

B. committed customer.

Jon purchased an antique watch on eBay from another consumer. Which type of sale is this known as? A. electronically-mediated sale B. consumer-to-consumer sale C. private sale D. personal sale E. direct-to-consumer sale

B. consumer-to-consumer sale

Which type of sale occurs when one consumer sells a product directly to another with or without the assistance of a commercial intermediary? A. direct-to-consumer sale B. consumer-to-consumer sale C. personal sale D. private sale E. direct marketing

B. consumer-to-consumer sale

Negative emotions or guilt feelings aroused by the use of a product or a service are referred to as _____. A. postpurchase anxiety B. consumption guilt C. consumption anxiety D. postpurchase dissonance E. consumption dissonance

B. consumption guilt

Rebecca is a single woman in her 40s. She sold her Honda Civic and bought an Acura CSX, which is considerably more expensive. She was going to her brother's house with her mother, and she asked her mother to drive in her car instead of Rebecca's new one. She didn't want her brother to see that she had purchased an expensive car for herself. Rebecca was experiencing _____. A. postpurchase anxiety B. consumption guilt C. consumption anxiety D. postpurchase dissonance E. consumption dissonance

B. consumption guilt

Every time Hannah buys a sandwich at Super Subs, she gets a stamp on a card. Once she has 10 stamps, she'll get a free sandwich. This is an example of a(n) A. overlay program. B. customer loyalty program. C. tie-in program. D. sandwich stamp program. E. acquisition program.

B. customer loyalty program.

Hailey purchased furniture for her living room and spent quite a bit of money. After she purchased it, she started regretting that she spent so much, and she wasn't sure she liked the furniture. To make herself feel better, she told herself that the other furniture she was considering really wasn't that good and probably would not last as long as the furniture she ended up purchasing. Which of the following is Hailey using to reduce her postpurchase dissonance? A. increasing the desirability of the brand purchased B. decreasing the desirability of rejected alternatives C. decreasing the importance of the purchase decision D. reversing the purchase decision E. increasing the importance of the purchase decision

B. decreasing the desirability of rejected alternatives

Factors such as timely delivery, order accuracy, billing accuracy, and merchandise quality are part of which dimension in online satisfaction and dissatisfaction? A. security and privacy B. fulfillment and reliability C. customer service D. website design and interaction E. All of these choices are correct.

B. fulfillment and reliability

Which of the following is NOT a source of increased customer profitability over time? A. price premium B. increased churn C. referrals D. increased sales volume E. lower costs

B. increased churn

Which dimension of product performance relates to the physical functioning of the product? A. direct B. instrumental C. attributional D. affective E. consummatory

B. instrumental

Renee has been going to the same dentist for years. However, her employer changed her dental insurance plan, and her dentist was not part of the plan. She had to switch to an approved dentist. Which reason for changing providers does this represent? A. ethical problems B. involuntary switching C. attraction by competitors D. pricing E. responses to service failures

B. involuntary switching

Which of the following is true regarding the Net Promoter Score (NPS)? A. it works well in all industries B. it asks WOM questions C. it calculates satisfaction scores D. it is difficult to use E. All of these choices are correct.

B. it asks WOM questions

An outlet or brand whose performance confirms a low-performance expectation generally will result in A. anger. B. nonsatisfaction. C. elation. D. dissatisfaction. E. satisfaction.

B. nonsatisfaction.

Carla continued to search for information on cars even after she purchased one. She would go over her decision in her head and pay attention to ads that featured the car she bought. She was also noticing how many other people drove her model of car, which made her feel more confident that she made a wise decision. Carla is attempting to reduce _____. A. consumption guilt B. postpurchase dissonance C. postpurchase shame D. postpurchase fear E. consumption anxiety

B. postpurchase dissonance

The costs of finding, evaluating, and adopting another solution are known as A. balancing costs. B. switching costs. C. committed costs. D. incurred costs. E. effort costs.

B. switching costs.

Ronald is dissatisfied with a product he has bought. What is the first decision Ronald will make with regard to his dissatisfying situation? A. whether to complain to the store or to the manufacturer B. whether or not to take any external action C. whether or not to stop buying that brand D. whether or not to initiate legal action E. whether or not to complain to a government agency

B. whether or not to take any external action

Which of the following is true regarding postpurchase dissonance? A. All consumer purchase decisions are followed by postpurchase dissonance of some sort. B.The importance of the decision to the consumer is one factor that influences the probability and magnitude of postpurchase dissonance. C. The individual's tendency to experience anxiety is not related to postpurchase dissonance. D. The easier it is to alter the decision, the more likely postpurchase dissonance will be. E. Nominal decision making usually results in the greatest magnitude of postpurchase dissonance.

B.The importance of the decision to the consumer is one factor that influences the probability and

__________ refers to the fact that repeat and particularly committed customers tend to buy the brand consistently rather than waiting for a sale or continually negotiating price. A. Referral B. Acquisition cost C. Price premium D. Price insensitive E. Price indifferent

C. Price premium

For which type of firm has research shown that reducing the number of customers who leave by 5 percent resulted in the highest percentage increase in average profits per customer? A. insurance brokerage B. industrial laundry C. branch banks D. credit insurance E. auto services

C. branch banks

Which of the following means that the consumer is enthusiastic about a particular brand and is somewhat immune to actions by competitors? A. brand leverage B. satisfaction C. commitment D. market maven E. brand fanatic

C. commitment

Which of the following factors is the MOST likely reason consumers change providers of a service? A. attraction by competitors B. ethical problems C. core service failure D. pricing E. service encounter failure

C. core service failure

Kimberly loves the ham and turkey from the Heavenly Ham store. There is only one store in her town, though, and it is pretty far away. She goes that direction on Saturdays for her daughter's music lesson, but by the time it's over and she's heading home, the store is already closed. Sometimes she brings a cooler and stops there before her daughter's lesson, but most of the time she forgets to bring the cooler. She usually ends up buying lunch meat at the local grocery deli. Which reason for changing providers does this represent? A. pricing B. responses to service failures C. inconvenience D. involuntary switching E. ethical problems

C. inconvenience

Leon is concerned with the reliability and durability of laptop computers he is considering purchasing. This represents which dimension of product performance? A. symbolic B. direct C. instrumental D. consummatory E. affective

C. instrumental

What are the two dimensions to performance for products? A. latent and manifest B. consummatory and instrumental C. instrumental and symbolic D. direct and indirect E. immediate and delayed

C. instrumental and symbolic

Connie just purchased her first new car, and she's actually feeling a little bad about it. She's concerned about how much money she spent and how long she will be making car payments. She's not sure she made the right choice, either. She liked another car a little better, but ended up purchasing another model. Connie is experiencing _____. A. postpurchase worry B. postpurchase guilt C. postpurchase dissonance D. postpurchase shame E. postpurchase fear

C. postpurchase dissonance

Doubt or anxiety regarding a purchase a consumer has made is known as _____. A. postpurchase worry B. postpurchase guilt C. postpurchase dissonance D. postpurchase shame E. postpurchase fear

C. postpurchase dissonance

Which of the following occurs when a consumer actively acquires a product that is not used or used only sparingly relative to its potential use? A. consumption guilt B. nonconsumption guilt C. product nonuse D. counterfactual thinking E. prefactual thinking

C. product nonuse

Which of the following is NOT an alternative if a consumer decides to retain a product's package? A. store it B. use it for original purpose C. recycle it D. use it for a new purpose E. All of the above are alternatives in this situation.

C. recycle it

Marketing efforts focused on a firm's current customers are generally termed A. formal marketing. B. internal marketing. C. relationship marketing. D. personal marketing. E. acquisition marketing.

C. relationship marketing.

The increase in product valuation based on "mere" ownership is called A. loyalty. B. mere touch. C. the endowment effect. D. the IKEA effect. E. the compromise effect.

C. the endowment effect.

Which disposition alternative is the most widely used by consumers? A. trade in B. recycle C. throw away D. give away E. sell

C. throw away

The external ice cube chute on Cade's refrigerator door was not working properly. She could hear the ice falling into the chute, but nothing would come out. She looked inside and realized there was a solid block of ice clogging the chute, and she couldn't get it loose. Cade decided to use a hair dryer to melt the ice, and it worked. Cade's using a hair dryer in a new way represents _____. A. counterfactual thinking B. prefactual thinking C. use innovativeness D. usage expansion E. extended use thinking

C. use innovativeness

Using WD-40 as an additive to fish bait is an example of _______. A. counterfeit thinking B. prefactual thinking C. use innovativeness D. usage expansion E. extended use thinking

C. use innovativeness

Using a product in a new way is referred to as _____. A. counterfactual thinking B. prefactual thinking C. use innovativeness D. usage expansion E. extended use thinking

C. use innovativeness

What is the first decision a dissatisfied customer will make? A. whether or not to stop buying that brand B. whether or not to complain to a government agency C. whether or not to take any external action D. whether or not to initiate legal action E. whether to complain to the store or to the manufacturer

C. whether or not to take any external action

Even if a dissatisfied consumer takes no external action, which of the following is likely? A. will engage in negative work-of-mouth B. will stop buying that brand C. will have a less favorable attitude toward the store or brand D. will stop buying at that store E. All of these choices are correct.

C. will have a less favorable attitude toward the store or brand

Eric booked a hotel through hotels.com. However, when he arrived at the hotel, they had no record of his reservation, and he was unable to get a room. He decided then that he would never use this service again. Which reason for changing providers does this represent? A. service encounter failure B. ethical problems C. pricing D. core service failure E. attraction by competitors

D. core service failure

__________ continue to buy the same brand though they do not have an emotional attachment to it. A. Referred buyers B. Brand loyals C. Satisfied buyers D. Committed customers E. Repeat purchasers

E. Repeat purchasers

Rod wasn't expecting much from the painters that came to his house. True to form, they did not do a good job and confirmed his low-performance expectations. Rod is most likely experiencing A. anger. B. satisfaction. C. elation. D. nonsatisfaction. E. dissatisfaction.

D. nonsatisfaction.

Which dimension of product performance relates to aesthetic or image-enhancement performance? A. direct B. affective C. instrumental D. symbolic E. consummatory

D. symbolic

Which of the following is FALSE regarding committed customers? A. They are more profitable to the firm than mere repeat purchasers. B. They are unlikely to consider additional information when making a purchase. C. They are resistant to competitors' marketing efforts. D. They are likely to be a source of positive word-of-mouth. E. They are less likely to forgive an occasional product or service failure.

E. They are less likely to forgive an occasional product or service failure.

Dawn and her two daughters went to see Pride & Prejudice at the movie theater. They all loved the movie and came out saying "we're so glad she married Mr. Darcy!" This movie provided them with A. instrumental performance. B. direct performance. C. consummatory performance. D. symbolic performance. E. affective performance.

E. affective performance.

The probability of a consumer experiencing postpurchase dissonance, as well as the magnitude of such dissonance, is a function of which of the following? A. the degree of commitment or irrevocability of the decision B. the importance of the decision to the consumer C. the difficulty of choosing among the alternatives D. the individual's tendency to experience anxiety E. all of the above

E. all of the above

Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting A. brand leverage. B. brand image. C. brand bias. D. brand equity. E. brand loyalty.

E. brand loyalty.

Which type of customer has an emotional attachment to the brand or firm? A. total buyer B. satisfied buyer C. affective customer D. repeat purchaser E. committed customer

E. committed customer

Savannah works at the front desk at a Marriott Hotel. If a guest has a complaint, she is empowered to make amends up to a certain amount without her supervisor's approval. Savannah is known as a A. decision maker. B. consumer-level employee. C. primary employee. D. key employee. E. frontline employee.

E. frontline employee.

Which of the following is NOT an action a consumer may utilize to reduce dissonance? A. increase the desirability of the brand purchased B. decrease the desirability of rejected alternatives C. decrease the importance of the purchase decision D. reverse the purchase decision (return the product before use) E. increase the importance of alternatives that were not considered in the purchase initially

E. increase the importance of alternatives that were not considered in the purchase initially

Kevin buys the same brand of clothing all the time. He continues to buy it because it fits him well and the price is right, but he does not have an emotional attachment to it. Kevin is an example of a(n) A. committed customer. B. nonsatisfied customer. C. indifferent purchaser. D. trapped purchaser. E. repeat purchaser.

E. repeat purchaser.

Jose and his family, all Mexican by birth, went to dine at a new Mexican restaurant in Houston, which is home to many outstanding Mexican restaurants. They were expecting authentic Mexican food, and they got it. They most likely experienced A. nonsatisfaction. B. dissatisfaction. C. satisfaction. D. surprise. E. amazement.

E. satisfaction

When perceptions of product performance match expectations that are at or above the minimum performance level, __________ generally results. A. elation B. surprise C. nonsatisfaction D. dissatisfaction E. satisfaction

E. satisfaction

Exploding demand and short product life spans for high-tech gadgets such as cell phones, personal computers, and various other personal electronic devices is creating growing concerns over _____. A. e-waste B. poisonous waste C. hazardous waste D. reusable waste E. recyclable waste

a. . e-waste

Simon was dissatisfied with the meal and service he received at a restaurant, so he complained. The manager came out and was arrogant to Simon, and Simon felt like he was trying to blame him for the bad experience he had by saying he was too picky. Simon vowed never to eat at that restaurant again. Which reason for changing providers does this represent? a. responses to service failures b. ethical problems c. involuntary switching d. pricing e. attraction by competitors

a. responses to service failures

Kristen purchased a chair and ottoman from a national chain furniture store. After only six months, the fabric started to fade and tear in some spots. While she didn't spend much money on this chair, she also didn't expect it to last very long. Kristen most likely experienced nonsatisfaction. elation. dissatisfaction. satisfaction. guilt.

dissatisfaction.

For which product is no disposition involved? ice cream cone clothing electronics soft drink laundry detergent

ice cream cone

Employees who deal directly with consumers are known as A. frontline employees. B. primary employees. C. foot soldiers. D. consumer-level employees. E. clerks.

A. frontline employees.

Failure on a given product or service characteristic often has a stronger effect on consumers than success on that same characteristic. This is known as A. negativity bias. B. service design flaw. C. financial failure. D. technology bias. E. customer failure.

A. negativity bias.

Carl and his family purchased a new home, and the builder left half emptypaint cans in the garage. Carl doesn't know what to do with them because he cannot put them out in the regular trash. Carl is concerned with which of the following with regard to the paint? product nonuse disposition purchase consumption use

disposition

Disposition of the product or the product's container may occur _____ product use. A. during B. after C. before D. A and B E. A, B, and C

e. during, after, before

Service employees that are uncaring, impolite, unresponsive, or unknowledgeable will cause consumers to switch providers for which reason? A. pricing B. attraction by competitors C. ethical problems D. service encounter failure E. core service failure

service encounter failure