Exam 15: Consumer Relationships

Explain how relationship quality impacts value for both customers and the firm.

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

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

What is another term for customer share?

Which of the following is a postconsumption cognitive process?

The certainty of a lengthy stream of revenues for a firm is much greater for a customer acting only on inertia.

Sometimes consumers get so mad at a business that they become violent or try to vandalize the business. What is this behaviour called?

Brian really likes his Nike athletic shoes and clothing. He feels a sense of attachment, dedication, and identification with this brand. Which of the following is Brian exhibiting?

Stan has not stepped foot in a Walmart store in more than 10 years, and he will do everything possible to avoid going to that store. Which type of consumer is Stan in this example?

Internet-only retailers have successfully built up relational switching costs.

The best course of action to handle negative public publicity is to do nothing because the news will eventually go away.

The amount of competition and the competitive intensity are factors that play a role in determining who switches.

Dissatisfied Customer Scenario Meg went to a local nail salon to get a manicure and pedicure. Unfortunately, she got a nasty nail infection on two of her toes on her left foot the day after her manicure. She didn't go back to the shop to complain, but she told all of her friends about it and said never to go there. One of her friends suggested she should go back there to complain and demand compensation for her medical expenses and at least get her money back for the pedicure. Meg was just disgusted and didn't even want to go back there to complain. If she ever decides to get another pedicure, she certainly won't go back to that shop. -Refer to Dissatisfied Customer Scenario. What conditions are making it highly likely that Meg will not return to this nail shop for another pedicure?

Complaining is a type of postconsumption behaviour.

Which statement best describes complaining behaviour?

Equity judgments, in particular perceptions of unfair treatment, are particularly prone to lead consumers to switch.

Which of the following is NOT an implication of negative word-of-mouth?

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

An angry customer is the worst possible outcome for a business.

The more you do business with the Kawartha Credit Union the more affinity shares you will earn; in 2012, these shares paid a cash dividend of 4.5%. What kind of program is this an example of?