Exam 15: Consumer Relationships

DISSATISFIED CUSTOMER SCENARIO Meg went to a local nail salon to get a manicure and pedicure. Unfortunately, she got a nasty nail infection on her left foot a day after her manicure. She didn't go back to the salon to complain, but she told all her friends about it and warned them to never go there. One of her friends suggested she should go to the salon, complain, and demand a compensation for her medical expenses, or at least get her money back for the pedicure. Meg was so disgusted that she 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 salon. -Refer to Dissatisfied Customer Scenario.Meg refused to go back to the salon and complain.However,if Meg were to go back,create a scene,and scream about what happened to her; Meg will be engaging in _____ revenge.

Which of the following firms would be least vulnerable to competitors?

All dissatisfied customers are complainers.

____ justice refers to the extent that consumers believe the processes involved in processing a transaction,performing a service or handling a complaint is fair.

Online reviews influence the opinions for relatively established brands much more than they do for unfamiliar brands.

DISSATISFIED CUSTOMER SCENARIO Meg went to a local nail salon to get a manicure and pedicure. Unfortunately, she got a nasty nail infection on her left foot a day after her manicure. She didn't go back to the salon to complain, but she told all her friends about it and warned them to never go there. One of her friends suggested she should go to the salon, complain, and demand a compensation for her medical expenses, or at least get her money back for the pedicure. Meg was so disgusted that she 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 salon. -Refer to Dissatisfied Customer Scenario.How would Meg's complaint benefit the salon?

Switching costs are the costs associated with changing from one choice to another.

Henry likes to have a burger for dinner on all weekdays.He visits Fries,a fast food chain,every evening except on days when he is stuck at work,and on such occasions he orders a sandwich from the office cafeteria.The amount of time and money that he spends for burger dinners at Fries is the _____ the fast food chain gets from Henry.

When Sheri,a socialite,got some bad publicity for her recent choice of evening wear,she decided to change designers.However,when Sheri visited her new designer for the first time,she missed the camaraderie and the easy banter she used to share with Margo,her previous designer.Which of the following types of switching costs was being experienced by Sheri?

Denials should be made only when the evidence unambiguously supports the actual truth.

GOURMET RESTAURANT SCENARIO Stella works for a publishing house in Midtown Manhattan. When her company relocated her to a new city for six months, she had a tough time. She loves Italian food, but couldn't find herself a decent Italian gourmet restaurant in the city. When she finally found one, Olive's, she started eating there regularly. The food at Olive's was not satisfactory and nothing compared to the menu Stella was used to at fancy Italian restaurants in Midtown Manhattan. However, Stella found the staff at Olive's friendly and believed that they could understand her preferences in food and wine. When her colleagues heard her predicament, they suggested a place she might like but Stella decided against it as it was a three-hour drive from where she stays. She wished the six months will end soon and she would visit Italia, her favorite restaurant in Manhattan, again. Stella vows that after the completion of six months, she is never going to come back at Olive's. -Refer to Gourmet Restaurant Scenario.When Stella was in Midtown Manhattan,she used to frequently eat at Italia.The amount of time and money that she spends at Italia is the _____ the restaurant gets from Stella.

The number of firms competing for business within a specific category is called competitive _____.

Dissatisfied consumers are more likely to complain than angry consumers.

Relationship quality represents the degree of connectedness between a consumer and a retailer.

Starz Inc.,a toy manufacturer,wants to attract new customers while retaining its old customers.In which of the following conditions is Starz Inc.is likely to be most vulnerable to consumers' switching behavior?

Alice has always used Nokia phones since the time she got herself her first phone.She is very comfortable with the user interface the brand provides.Even though she would like to buy a Smartphone from a different brand,she is worried about the effort and time it would take her to get acquainted to a different user interface.Which of the following types of switching costs does this represent?

_____ takes place when consumers pass on negative information about a company from one to another.

True loyalty involves both a continuing series of interactions and feelings of attachment between the customer and the firm.

The term critical incident refers to exchanges between consumers and business that the consumer views as unusually negative.