MAR 4503 Chapter 18 (Exam 2)

Committed customers are less likely to forgive a product or service failure.

False

Counterintuitive thinking refers to imagining the outcome if a different decision had been made in the past.

False

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

True

For many products and services, there are wide variations in profitability across customers.

True

If a customer is dissatisfied with a company's product, the company would prefer that he or she complains to the company.

True

Many customer loyalty programs are designed to generate repeat purchases rather than committed customers.

True

Nominal and most limited decision making will not produce postpurchase dissonance.

True

Sometimes consumers purchase products and do not use them.

True

Joyce will only drink Pepsi cola, 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

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

consumption guilt

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

Service employees that are uncaring, impolite, unresponsive, or unknowledgeable will cause consumers to switch providers for which reason?

service encounter failure

What is the first decision a dissatisfied customer will make?

whether or not to take any external action

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

Factors such as timely delivery, order accuracy, billing accuracy, and merchandise quality are part of which dimension in online satisfaction and dissatisfaction?

fulfillment and reliability

For which product is no disposition involved?

ice cream cone

Leon is concerned with the reliability and durability of laptop computers he is considering purchasing. This represents which dimension of product performance?

instrumental

Which dimension of product performance relates to the physical functioning of the product?

instrumental

What are the two dimensions to performance for products?

instrumental and symbolic

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

True

Disposition of the product or the product's container may occur before, during, or after product use.

True

Firms need to satisfy consumer expectations by creating reasonable expectations through promotional efforts and maintaining consistent quality so those expectations are fulfilled.

True

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.

_____ 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

_____ continue to buy the same brand though they do not have an emotional attachment to it.

Repeat purchasers

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

Standardize the relationship across customers.

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 throw away society, and consumers are willing to purchase new products without concern for waste.

Which of the following is FALSE regarding committed customers?

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

A consumer can be neither satisfied nor dissatisfied.

True

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

True

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

acquisition costs

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

The emotional response that owning or using the product or outlet provides is known as _____.

affective performance

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?

branch banks

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

churn

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 _____.

commitment

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 type of customer has an emotional attachment to the brand or firm?

committed customer

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

committed customer; discontinued use; repeat purchases; increased use

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 _____.

consumption guilt

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?

core service failure

Which of the following is a key element of relationship marketing?

customizing the relationship to the individual customer; pricing in a manner to encourage loyalty; augmenting the core service or product with extra benefits; marketing to employees so that they will perform well for customers

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 _____.

e-waste

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 _____.

front-line employee

Employees who deal directly with consumers are known as _____.

front-line employees

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?

importance of the purchase to the consumer; ease of taking action; consumer's existing level of overall satisfaction with the brand or outlet; characteristics of the consumer involved

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 grocery deli. Which reason for changing providers does this represent?

inconvenience

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

increased churn

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

increased sales volume; lower costs; referrals; price premium

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 ______.

negativity bias

An outlet or brand whose performance confirms a low-performance expectation generally will result in _____.

nonsatisfaction

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

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 _____.

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 _____.

postpurchase dissonance

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

postpurchase dissonance

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

recycle it

An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is called _____.

relationship marketing

Marketing efforts focused on a firm's current customers are generally termed _____.

relationship marketing

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) _____.

repeat purchaser

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

When perceptions of product performance match expectations that are at or above the minimum performance level, _____ generally results.

satisfaction

Why must manufacturers design products with both the primary purpose and other potential uses in mind?

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 represent Sandy's _____.

switching costs

Which dimension of product performance relates to aesthetic or image-enhancement performance?

symbolic

The probability of a consumer experiencing postpurchase dissonance, as well as the magnitude of such dissonance, is a function of which of the following?

the degree of commitment or irrevocability of the decision; the importance of the decision to the consumer; the difficulty of choosing among the alternatives; the individual's tendency to experience anxiety

Customer complaints communicated directly to the company and no one else are important because _____.

they can alert the firm to problems; enable problems to be solved; neutralize negative WOM; enable dissatisfied customers to be more satisfied

The external ice cube shoot on Cade's refrigerator door was not working properly. She could hear the ice falling into the shoot, but nothing would come out. She looked inside and realized there was a solid block of ice clogging the shoot, 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 _____.

use innovativeness

Affective performance can arise from only the symbolic dimension of product performance.

False

Functional performance relates to the physical functioning of the product.

False

Repeat purchasers continue to buy the same brand because of their emotional attachment to it.

False

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 is true regarding postpurchase dissonance?

The importance of the decision to the consumer is one factor that influences the probability and magnitude of postpurchase dissonance.

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

during; after; before

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

brand loyalty

Jon purchased an antique watch on eBay from another consumer. Which type of sale is this known as?

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?

consumer-to-consumer sale

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

core service failure

Which of the following refers to imagining the outcome if a different decision had been made in the past?

counterfactual thinking

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

Carl and his family purchased a new home, and the builder left half empty paint 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?

disposition

A brand whose perceived performance falls below expectations generally produces _____.

dissatisfaction

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

false

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?

involuntary switching

Which of the following is true regarding the Net Promoter Score (NPS)?

it asks WOM questions

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 _____.

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

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

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?

symbolic

Which disposition alternative is the most widely used by consumers?

throw away

Using WD-40 as an additive to fish bait is an example of _______.

use innovativeness

Using a product in a new way is referred to as _____.

use innovativeness

Consumer 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