Question 1

In which situation could a business be most vulnerable to consumers switching?

Accepted Answer

A)  high competitive intensity and low switching costs 
B)  high competitive intensity and high switching costs 
C)  low competitive intensity and high switching costs 
D)  satisfied customers and low switching costs 
A)  high competitive intensity and low switching costs 
B)  high competitive intensity and high switching costs 
C)  low competitive intensity and high switching costs 
D)  satisfied customers and low switching costs

Question 2

What is a consumer who yells, insults, and makes a public scene in an effort to harm a business after receiving poor service engaging in?

Accepted Answer

A)  retaliatory revenge 
B)  rancorous revenge 
C)  negative public publicity 
D)  negative word-of-mouth 
A)  retaliatory revenge 
B)  rancorous revenge 
C)  negative public publicity 
D)  negative word-of-mouth

Question 3

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. Why might the nail shop want Meg to complain about her problem as a result of their service?

Accepted Answer

A)  Meg's complaint will be a valuable source of information if the shop does not know customers are getting infections after their services. 
B)  It will stop Meg from telling others of her negative experience. 
C)  Meg will be more likely to engage in positive word-of-mouth if she complains. 
D)  The shop owner will be able to convince her that the infection is not the result of their services. 
A)  Meg's complaint will be a valuable source of information if the shop does not know customers are getting infections after their services. 
B)  It will stop Meg from telling others of her negative experience. 
C)  Meg will be more likely to engage in positive word-of-mouth if she complains. 
D)  The shop owner will be able to convince her that the infection is not the result of their services.

Question 4

Consumers who experience anger in response to an evaluation of the consumption experience are least likely to complain.

Accepted Answer

A) True 
 B)False

Question 5

When competitive intensity is low but switching costs are high, a company is highly vulnerable to consumers who will switch providers.

Accepted Answer

A) True 
 B)False

Question 6

Which statement best describes the competence characteristic of relationship quality?

Accepted Answer

A)  Consumer views company and service providers as knowledgeable and capable. 
B)  Consumer and firm understand each other and "speak the same language." 
C)  Buyer treats the customer as an individual with unique desires and requirements. 
D)  Buyer and seller can depend on each other. 
A)  Consumer views company and service providers as knowledgeable and capable. 
B)  Consumer and firm understand each other and "speak the same language." 
C)  Buyer treats the customer as an individual with unique desires and requirements. 
D)  Buyer and seller can depend on each other.

Question 7

McDonalds Canada's share of the brewed coffee business at restaurants grew another 2.5% for the year to August and now holds a market share of 13%, double what it was in 2009. What has McDonalds Canada steadily increased in the past few years?

Accepted Answer

A)  market share of the coffee business 
B)  customer share of the coffee business 
C)  competitive intensity of the coffee business 
D)  share price of the coffee business 
A)  market share of the coffee business 
B)  customer share of the coffee business 
C)  competitive intensity of the coffee business 
D)  share price of the coffee business

Question 8

A woman claimed to have found a fingertip in her chili from a national fast food restaurant chain. Considerable negative public publicity followed this accusation. Discuss alternative courses of action this fast food chain could pursue to handle this negative public publicity and suggest the best method in this situation.

Accepted Answer

Some alternative courses of action are:

Question 9

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. If Meg ever gets another pedicure, she certainly won't go back to that nail shop. Which type of behaviour would Meg be exhibiting if she goes to a different nail shop for another pedicure?

Accepted Answer

A)  switching 
B)  rancorous 
C)  negative consumer 
D)  deviant 
A)  switching 
B)  rancorous 
C)  negative consumer 
D)  deviant

Question 10

Which statement is NOT a suggested alternative course of action for handling negative public publicity?

Accepted Answer

A)  Deny responsibility for any negative event. 
B)  Take responsibility for any negative events and be visible in the public eye. 
C)  Release information allowing the public to draw its own conclusion. 
D)  Spread counter information but don't identify the company as the source. 
A)  Deny responsibility for any negative event. 
B)  Take responsibility for any negative events and be visible in the public eye. 
C)  Release information allowing the public to draw its own conclusion. 
D)  Spread counter information but don't identify the company as the source.

Question 11

Negative public publicity occurs when negative word-of-mouth spreads on a relatively large scale, possibly even involving media coverage.

Accepted Answer

A) True 
 B)False

Question 12

Which type of consumers will do everything possible to avoid doing business with a particular marketer?

Accepted Answer

A)  vigilante 
B)  anti-loyal 
C)  resistive 
D)  malcontent 
A)  vigilante 
B)  anti-loyal 
C)  resistive 
D)  malcontent

Question 13

Although Asad does not know much about plumbing, he can still go into the local hardware store and come out with the right thing because the employees are very helpful and good at deciphering what he needs. What characteristic of relationship quality is being demonstrated?

Accepted Answer

A)  competence 
B)  communication 
C)  trust 
D)  equity 
A)  competence 
B)  communication 
C)  trust 
D)  equity

Question 14

Market share is the portion of resources allocated to one brand from among the set of competing brands.

Accepted Answer

A) True 
 B)False

Question 15

Switching is a possible postconsumption behaviour.

Accepted Answer

A) True 
 B)False

Question 16

Share of wallet is sometimes used to refer to customer share.

Accepted Answer

A) True 
 B)False

Question 17

Under conditions of high competitive intensity and low switching costs, dissatisfied consumers are almost certain to switch.

Accepted Answer

A) True 
 B)False

Question 18

Customer share is affective, and commitment is a behavioural component of loyalty.

Accepted Answer

A) True 
 B)False

Question 19

The main concern with negative WOM for marketers is that it affects all consumers in the same way, so it needs to be countered immediately to avoid further spreading.

Accepted Answer

A) True 
 B)False

Question 20

Which statement best describes relational switching costs?

Accepted Answer

A)  They involve lost time and effort from switching from one brand or service provider to another. 
B)  They consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice. 
C)  They are the emotional and psychological consequences of changing from one brand or service provider to another. 
D)  They form the greatest barrier to switching from one brand or service provider to another. 
A)  They involve lost time and effort from switching from one brand or service provider to another. 
B)  They consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice. 
C)  They are the emotional and psychological consequences of changing from one brand or service provider to another. 
D)  They form the greatest barrier to switching from one brand or service provider to another.

In which situation could a business be most vulnerable to consumers switching?

What is a consumer who yells, insults, and makes a public scene in an effort to harm a business after receiving poor service engaging in?

Consumers who experience anger in response to an evaluation of the consumption experience are least likely to complain.

When competitive intensity is low but switching costs are high, a company is highly vulnerable to consumers who will switch providers.

Which statement best describes the competence characteristic of relationship quality?

McDonalds Canada's share of the brewed coffee business at restaurants grew another 2.5% for the year to August and now holds a market share of 13%, double what it was in 2009. What has McDonalds Canada steadily increased in the past few years?

Which statement is NOT a suggested alternative course of action for handling negative public publicity?

Negative public publicity occurs when negative word-of-mouth spreads on a relatively large scale, possibly even involving media coverage.

Which type of consumers will do everything possible to avoid doing business with a particular marketer?

Although Asad does not know much about plumbing, he can still go into the local hardware store and come out with the right thing because the employees are very helpful and good at deciphering what he needs. What characteristic of relationship quality is being demonstrated?

Market share is the portion of resources allocated to one brand from among the set of competing brands.

Switching is a possible postconsumption behaviour.

Share of wallet is sometimes used to refer to customer share.

Under conditions of high competitive intensity and low switching costs, dissatisfied consumers are almost certain to switch.

Customer share is affective, and commitment is a behavioural component of loyalty.

The main concern with negative WOM for marketers is that it affects all consumers in the same way, so it needs to be countered immediately to avoid further spreading.

Which statement best describes relational switching costs?

What Is CB, and Why Should I Care?

Value and the Consumer Behaviour Value Framework

Consumer Learning Starts Here: Perception

Comprehension, Memory, and Cognitive Learning

Motivation and Emotion: Driving Consumer Behaviour

Personality, Lifestyles, and the Self-Concept

Attitudes and Attitude Change

Consumer Culture

Microcultures

Group and Interpersonal Influence

Consumers in Situations

Decision Making I: Need Recognition and Search

Decision Making II: Alternative Evaluation and Choice

Consumption to Satisfaction

Marketing Ethics and Consumer Misbehaviour

Filters

Exam 15: Consumer Relationships

In which situation could a business be most vulnerable to consumers switching?

What is a consumer who yells, insults, and makes a public scene in an effort to harm a business after receiving poor service engaging in?

Consumers who experience anger in response to an evaluation of the consumption experience are least likely to complain.

When competitive intensity is low but switching costs are high, a company is highly vulnerable to consumers who will switch providers.

Which statement best describes the competence characteristic of relationship quality?

McDonalds Canada's share of the brewed coffee business at restaurants grew another 2.5% for the year to August and now holds a market share of 13%, double what it was in 2009. What has McDonalds Canada steadily increased in the past few years?

Which statement is NOT a suggested alternative course of action for handling negative public publicity?

Negative public publicity occurs when negative word-of-mouth spreads on a relatively large scale, possibly even involving media coverage.

Which type of consumers will do everything possible to avoid doing business with a particular marketer?

Although Asad does not know much about plumbing, he can still go into the local hardware store and come out with the right thing because the employees are very helpful and good at deciphering what he needs. What characteristic of relationship quality is being demonstrated?

Market share is the portion of resources allocated to one brand from among the set of competing brands.

Switching is a possible postconsumption behaviour.

Share of wallet is sometimes used to refer to customer share.

Under conditions of high competitive intensity and low switching costs, dissatisfied consumers are almost certain to switch.

Customer share is affective, and commitment is a behavioural component of loyalty.

The main concern with negative WOM for marketers is that it affects all consumers in the same way, so it needs to be countered immediately to avoid further spreading.

Which statement best describes relational switching costs?

What Is CB, and Why Should I Care?

Value and the Consumer Behaviour Value Framework

Consumer Learning Starts Here: Perception

Comprehension, Memory, and Cognitive Learning

Motivation and Emotion: Driving Consumer Behaviour

Personality, Lifestyles, and the Self-Concept

Attitudes and Attitude Change

Consumer Culture

Microcultures

Group and Interpersonal Influence

Consumers in Situations

Decision Making I: Need Recognition and Search

Decision Making II: Alternative Evaluation and Choice

Consumption to Satisfaction

Marketing Ethics and Consumer Misbehaviour

Filters