Consumer Behavior Exam 2 (Chapter 18)

Many customer loyalty programs are designed to generate repeat purchases rather than committed customers. (T/F)

True

Nominal and most limited decision making will not produce postpurchase dissonance. (T/F)

True

Which of the following is NOT an action a consumer may utilize to reduce dissonance?

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

Which of the following means that the consumer is enthusiastic about a particular brand and is somewhat immune to actions by competitors?

commitment

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 _____.

committed customer

Which of the following is true regarding word of mouth?

consumers trust word of mouth more than any other sources

for which product is no disposition involved?

ice cream cone

which of the following is false regarding committed customers?

they are less likely to forgive an occasional product or service failure

Which disposition alternative is the most widely used by consumers?

throw away

Churn is a term used to refer to turnover in a firm's customer base (T/F)

true

Disposition of the product of the product's container may occur before, during, or after product use (T/F)

true

For many products and services, there are wide variations in profitability across customers (T/F)

true

If a customer is dissatisfied with a company's product, the company would prefer that he or she complains to the company (T/F)

true

a consumer selling something to another individual through an online intermediary (i.e. eBay) is known as a consumer-to-consumer sale (T/F)

true

If a customer is dissatisfied with a company's product, they company would prefer that he or she complains to the company (T/F)

ture

Even if a dissatisfied consumer takes no external action, which of the following is likely?

will have a less favorable attitude toward the store or brand

Consumers might experience guilt by the use of a product or a service.

True

Consumers might experience guilt by the use of a product or a service. (T/F)

True

The term used to refer to turnover in a firm's customer base is _____.

churn

Which of the following factors is the MOST likely reason consumers change providers of a service?

core service failure

Which of the following is an alternative once a consumer has decided to get rid of a product?

1. sell it 2. give it away 3. loan it to someone 4. throw it away (all of the above)

which of the following is a source of increased customer profitability over time?

1. Increased sales volume 2. Lower costs 3. Referrals 4. Price premiums (all of the above)

the probability of a consumer experiencing post-purchase dissonance, as well as the magnitude of such dissonance, is a function of which of the following?

1. The degree of commitment or irreconcilability of the decision 2. The importance of the decision to the consumer 3. The difficulty of choosing among alternatives. 4. The individual's tendency to experience anxiety (all of the above)

which of the following is NOT a possible outcome once a consumer is satisfied?

1. committed customer 2. discontinued use 3. repeat purchase 4. increased use (all of the following are possible outcomes)

What are the two dimensions to performance for products?

1. instrumental 2. symbolic

Affective performance can arise from only the symbolic dimension of product performance. (T/F)

False

which of the following is true regarding post purchase dissonance?

The importance of the decision to the consumer is one factor that influence the probability of post-purchase dissonance

Renee has been going to the same dentist for years. However, her employer changed her dental insurance plan, and her dentist was not a part of the plan. She had to switch to an approved dentist. Which reason for changing provides does this represent?

involuntary switching

Which of the following is not an alternative if a consumer decides to retain a product's package?

recycle it

Expenses associated with advertising, establishing a new account, and mailing catalogs are examples of _____.

acquisition costs

Which of the following is true regarding word-of-mouth (WOM)?

Consumers trust WOM more than many other sources.

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?

Decreasing the desirability of rejected alternatives.

Committed customers are less likely to forgive a product or service failure. (T/F)

False

Most consumer purchases involve relatively high-involvement decision making, and therefore, arouse little or no post-purchase dissonance. (T/F)

False

_____ 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.

Price premium

Which of the following is NOT a key element of relationship marketing?

Standardize the relationship across customers.

A consumer can be neither satisfied nor dissatisfied. (T/F)

True

A consumer selling something to another individual through an online intermediary (i.e., eBay) is known as a consumer-to-consumer sale. (T/F)

True

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 _____.

affective performance

For which type of firm has research shown that reducing the number of customers who leave by 5% resulted in the highest % increase in average profits per customer?

branch banks

Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting _____.

brand loyalty

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 _____.

brand loyalty

consumers who exhibit a positively biased behavior toward a specific brand are exhibiting ______________.

brand loyalty

Negative emotions or guilt feelings aroused by the use of a product or service are referred to as ___________.

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) _____.

customer loyalty program

a brand whose perceived performance falls below expectations generally produces ____________.

dissatisfaction

Disposition of the product or the product's container may occur _____ product use.

during after before

exploding demand and short product life-spans for high-tech gadgets such as cellphones, personal computers, and various other personal electronic devices is creating growing concerns over ________.

e-waste

Functional performance relates to the physical functioning of the product (T/F)

false

committed customers are less likely to forgive a product or service failure (T/F)

false

most consumer purchase involve relatively high-involvement decision making and therefore, arouse little or no post-purchase dissonance (T/F)

false

which of the following is NOT a source of increased customer profitability over time?

increased churn

Failure of a given product or service characteristic often has a stronger effect on consumers than success on that same characteristic. This is known as _____________.

negativity bias

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 did expect it to last longer than that. Kristen most likely experienced _____.

nonsatisfaction

an outlet or brand whose performance confirms a low-performance expectation generally will result in ___________.

nonsatisfactoin

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 _____.

postpurchase dissonance

Doubt or anxiety regarding a purchase a consumer has made is known as _____.

postpurchase dissonance

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 _____.

relationship marketing

______________ continue to buy the same brand through they do not have an emotional attachment to it.

repeat purchasers

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?

responses to service failures

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 ___________.

satisfaction

The costs of finding, evaluating, and adopting another solution are known as _____.

switching costs

The costs of finding, evaluating, and adopting another solution are known as _________.

switching costs

using WD-40 as an additive to fish balt is an example of _____________.

use innovativeness

Customer relationship management (CRM) programs are _____.

used to increase satisfaction, commitment, and retention of key customers

Factors such as information quality, navigation, price, merchandise availability, purchase process, and order tracking are part of which dimension in online satisfaction and dissatisfaction?

website design and interaction

Ronald is dissatisfied with a product he has bought. What is the first decision Ronald will make with regard to his dissatisfying situation?

whether or not to take any external action