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1. Consumers with a weak economic orientation display lower customer share with all competitors.
a.
True
b.
False
ANSWER:
False
2. The term critical incident refers to the turning point at which the customer arrives at a decision to purchase a product.
a.
True
b.
False
ANSWER:
False
3. If a furious consumer becomes violent or tries to vandalize the business, it is known as rancorous revenge.
a.
True
b.
False
ANSWER:
False
4. A disgusted or hopeless consumer is more likely to complain than an angry consumer.
a.
True
b.
False
ANSWER:
False
5. Consumer opinions will be more shaped by reviews for relatively unfamiliar brands compared to established brands.
a.
True
b.
False
ANSWER:
True
6. A healthy relationship between a consumer and a marketer enhances value both for the consumer and the marketer.
a.
True
b.
False
ANSWER:
True
7. Complaining behavior occurs when a consumer actively seeks out someone to spread negative word-of-mouth.
a.
True
b.
False
ANSWER:
False
8. In the context of consumer complaints, denials should be made only when the evidence unambiguously supports the
actual truth.
a.
True
b.
False
ANSWER:
True
9. Sometimes consumers end up maintaining a relationship with a service provider even if they experience dissatisfaction.
a.
True
b.
False
ANSWER:
True
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10. If a consumer’s relationship with a brand is strong, accepting negative information diminishes the consumer’s self-
concept.
a.
True
b.
False
ANSWER:
True
11. When competitive intensity is low and switching costs are high, a company is vulnerable to consumers who will
switch providers even when satisfied.
a.
True
b.
False
ANSWER:
False
12. Procedural switching costs involve money and emotional consequences.
a.
True
b.
False
ANSWER:
False
13. When competitive intensity is low and switching costs are high, dissatisfied consumers are almost certain to switch.
a.
True
b.
False
ANSWER:
False
14. For experiential types of services, such as fashion shopping, utilitarian value is more strongly related to customer
share.
a.
True
b.
False
ANSWER:
False
15. Retaliatory revenge is when a consumer yells insults and makes a public scene in an effort to harm the business.
a.
True
b.
False
ANSWER:
False
16. Switching costs are the costs associated with changing from one choice to another.
a.
True
b.
False
ANSWER:
True
17. Customers who have switched service providers are less likely to become loyal customers even if they experience
increased hedonic value compared to the previous service provider.
a.
True
b.
False
ANSWER:
False
18. Consumers high in price sensitivity are less likely to complain than consumers with some indifference about the price
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paid for a service.
a.
True
b.
False
ANSWER:
False
19. If companies possess the expertise to respond to negative post-consumption behaviors appropriately, the result can be
a positive value experience for company and customer alike.
a.
True
b.
False
ANSWER:
True
20. Negative avoidance emotions are most likely to precede complaining behavior.
a.
True
b.
False
ANSWER:
False
21. In the social media world, the key is to ignore negative news so that it fades away.
a.
True
b.
False
ANSWER:
False
22. Financial switching costs involve the loss of time and effort.
a.
True
b.
False
ANSWER:
False
23. Disgust evokes an approach response, and as a result, a disgusted consumer is likely to complain.
a.
True
b.
False
ANSWER:
False
24. Retailers who build up procedural switching costs usually gain true customer loyalty.
a.
True
b.
False
ANSWER:
False
25. Customers who believe a firm has adequately responded to some negative critical incident are likely to become more
loyal.
a.
True
b.
False
ANSWER:
True
26. Usually, all consumers want to put in effort into shaping the consumption experience.
a.
True
b.
False
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ANSWER:
False
27. Dissatisfied consumers are more likely to complain than angry consumers.
a.
True
b.
False
ANSWER:
False
28. Consumer complaints pay off in terms of customer retention if a store provides the compensation quickly.
a.
True
b.
False
ANSWER:
True
29. When relationship quality is high, the prospects for a continued series of mutually valuable exchanges exist.
a.
True
b.
False
ANSWER:
True
30. The value received from consumption depends not only on the product or service providers, but also on the customer
him- or herself.
a.
True
b.
False
ANSWER:
True
31. Consumers are about twice as likely to spread positive as negative word-of-mouth (WOM).
a.
True
b.
False
ANSWER:
False
32. Negative consumer behaviors like complaining usually receive less attention than positive consumer behaviors such as
positive word-of-mouth.
a.
True
b.
False
ANSWER:
False
33. For functional types of services, hedonic value is more strongly related to customer share than is utilitarian value.
a.
True
b.
False
ANSWER:
False
34. Consumers who spread negative word-of-mouth (negative WOM) without complaining to the company itself are
particularly likely to never do business with that company again.
a.
True
b.
False
ANSWER:
True
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35. Price-sensitive consumers become less loyal following the complaint than do those with less price sensitivity.
a.
True
b.
False
ANSWER:
True
36. Starz Inc. manufactures popular game CDs for a particular gaming console. Starz Inc. is most likely to be vulnerable
to consumers’ switching behavior if the competitor’s product is:
a.
cheaper and uses the same gaming console.
b.
more expensive and uses a different gaming console.
c.
cheaper but uses a different gaming console.
d.
more expensive but uses the same gaming console.
ANSWER:
a
37. The sense of attachment, dedication, and identification with a brand or service provider is known as _____.
a.
consumer inertia
b.
customer share
c.
customer commitment
d.
consumer empathy
ANSWER:
c
38. Disgust in consumers is most likely to evoke a(n) _____.
a.
avoidance response
b.
inertial response
c.
approach response
d.
confrontational response
ANSWER:
a
39. Negative word-of-mouth (negative WOM) is said to occur when:
a.
consumers feels disgusted with a company and switch to another company.
b.
consumers pass on unfavorable information about a company from one to another.
c.
consumers lodge complaints in company websites after having negative product experiences.
d.
consumers change a pattern of behavior when a stronger force motivates them to change.
ANSWER:
b
40. The term _____ refers to exchanges between consumers and businesses that the consumer views as unusually
negative.
a.
touchpoint
b.
critical incident
c.
moderating variable
d.
zero moment of truth
ANSWER:
b
41. _____ lead to an affective reaction most conventionally represented by consumer satisfaction or dissatisfaction.
a.
Post-consumption cognitions
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b.
Prepurchase decision efforts
c.
Confirmation biases
d.
Alternative evaluations
ANSWER:
a
42. Which of the following types of switching costs consists of the total economic resources that must be spent or invested
as a consumer learns how to obtain value from a new product choice?
a.
Procedural switching costs
b.
Relational switching costs
c.
Transactional switching costs
d.
Financial switching costs
ANSWER:
d
43. Which of the following is true of preferred customer perks?
a.
The customers receiving these perks are disproportionately profitable for the company.
b.
Giving away these perks is not particularly profitable for the company in the long run.
c.
Companies are usually quite indiscreet in providing these perks in order to attract more customers.
d.
The customers receiving these perks do not talk about them lest other customers get angry.
ANSWER:
a
44. The inability of consumer satisfaction/dissatisfaction (CS/D) to predict the future purchasing behavior of consumers is
attributed to _____.
a.
retributive costs
b.
switching costs
c.
inequity perceptions
d.
equity perceptions
ANSWER:
b
45. Which of the following statements is true in the context of consumer loyalty?
a.
A consumer with a strong economic orientation displays higher customer share with all competitors.
b.
The certainty of a lengthy stream of revenues is much more for a customer acting only on inertia.
c.
A firm that concentrates on repeated behavior alone, perhaps by always being convenient, can do well but
remains vulnerable to competitors.
d.
A customer’s contribution on the equity side of the equation remains the same irrespective of whether or not a
customer is a truly committed or acting on inertia alone.
ANSWER:
c
46. When the La’ ChamoTea outlet near Ben’s place closed, he started going to the next nearest outlet, which is 20 blocks
from his house, just to get his daily morning dose of chamomile tea. Ben’s behavior toward La’ ChamoTea is an example
of _____.
a.
customer share
b.
consumer inertia
c.
consumer switching
d.
customer commitment
ANSWER:
d
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47. Which of the following is true of complaining behavior in customers?
a.
An angry customer is more likely to complain than a disgusted consumer.
b.
A collectivist customer is more likely to complain than an individualist consumer.
c.
Disgusted consumers are very likely to complain.
d.
Consumers high in price sensitivity are less likely to complain.
ANSWER:
a
48. Stan has not shopped at Resplendent Stores, a chain of retail stores, in more than two years. Because of a bad
experience at the store, he dislikes the store and has vowed never to shop there. In the given scenario, which of the
following is true of Stan?
a.
He is engaged in complaining behavior.
b.
He is exacting rancorous revenge.
c.
He has become an antiloyal consumer.
d.
He has become afflicted with consumer inertia.
ANSWER:
c
49. Which of the following is true of antiloyal customers?
a.
They do not buy from the same marketer even if they have had a good experience.
b.
They do everything possible to avoid doing business with a particular marketer.
c.
They try different marketers but do not express any opinion about their experiences.
d.
They frequently try other marketers but keep coming back to a particular marketer.
ANSWER:
b
50. Which of the following types of switching costs involves lost time and effort?
a.
Financial switching costs
b.
Emotional switching costs
c.
Procedural switching costs
d.
Relational switching cots
ANSWER:
c
51. Identify a true statement about loyalty programs in the United States.
a.
They more often work by offering on-the-spot discounts.
b.
They seem to work better when the reward is offered in the future.
c.
They work best on consumers with a strong economic orientation.
d.
They work best on consumers who are bargain shoppers.
ANSWER:
a
52. Sakura, a recently launched sedan, has been rated by Consumer Reports, a nonprofit organization, as the most fuel-
efficient sedan of 2015. Such a rating by an independent organization is called a(n):
a.
celebrity endorsement.
b.
influencer endorsement.
c.
brand-advocate endorsement.
d.
third-party endorsement.
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ANSWER:
d
53. Café da Manhã, a small café, enjoys business from many loyal customers. When there is news of another café opening
in the next block, the management of the café decides to take action to preempt the competition. Which of the following
actions by the management of Café da Manhã is most likely to ensure that its customers keep coming back to the café?
a.
Completely revamping its menu
b.
Introducing a loyalty card program
c.
Focusing solely on gratifying the needs of its customers
d.
Reducing the price of its most popular items
ANSWER:
b
54. Customer share is sometimes referred to as _____.
a.
share of wallet
b.
share of stock
c.
an overhead cost
d.
a variable cost
ANSWER:
a
55. _____ results from a cognitive comparison between a consumer’s expectations and the consumer’s actual performance
perception.
a.
Disconfirmation
b.
Attribution
c.
Disintegration
d.
Consumer inertia
ANSWER:
a
56. In which of the following services will utilitarian value be more strongly related to customer share than hedonic
value?
a.
Salon services
b.
Spa treatment
c.
Dental treatment
d.
Fine dining services
ANSWER:
c
57. Sheri, a socialite, received bad publicity for her recent choice of evening wear. As a result, she decided to change
designers. However, when she visits her new designer for the first time, she missed the camaraderie she shared with her
previous designer. In the given scenario, Sheri is experiencing the _____.
a.
procedural switching cost
b.
relational switching cost
c.
transactional switching cost
d.
financial switching cost
ANSWER:
b
58. Until a few decades ago, American consumers had only one choice for telephone services. Today, however,
consumers can choose from many telephone and data services providers. This increase in the number of service providers
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indicates an increase in _____.
a.
customer share
b.
share of wallet
c.
competitive intensity
d.
consumer inertia
ANSWER:
c
59. Which of the following occurs when a consumer actively seeks out someone to share an opinion with regarding a
negative consumption event?
a.
Disconfirming behavior
b.
Switching behavior
c.
Complaining behavior
d.
Satisficing behavior
ANSWER:
c
60. Holly was so pleased with the service she received at the new spa in her neighborhood that she told many of her
friends about her pleasant experience. Which of the following post-consumption behaviors best describes Holly’s
behavior?
a.
Confirmatory bias
b.
Consumer inertia
c.
Positive word-of-mouth
d.
Positive disconfirmation
ANSWER:
c
61. When it comes to running shoes, Brian is completely devoted to Footfall, a sports shoe brand. He feels that the brand
defines him. Brian’s association with Footfall’s running shoes is an example of _____.
a.
consumer commitment
b.
customer share
c.
consumer inertia
d.
consumer switching
ANSWER:
a
62. Zack went to a restaurant with his friends. The waiter took long to bring their order, and hence, the food that was
served was cold. When Zack complained, the waiter did not respond appropriately. As a result, Zack started yelling at him
and demanded to see the manager. Zack’s behavior at the restaurant is an example of _____.
a.
bounded rationality
b.
rancorous revenge
c.
procedural justice
d.
cognitive dissonance
ANSWER:
b
63. _____ are the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another.
a.
Switching costs
b.
Fixed costs
c.
Variable costs
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d.
Operating costs
ANSWER:
a
64. Matt is unhappy with the Luisteren music player that he bought recently. He mentions it to his friend Christine and
suggests that she consider other brands. In the given scenario, Matt’s behavior illustrates _____.
a.
positive disconfirmation
b.
negative word-of-mouth
c.
confirmatory bias
d.
switching behavior
ANSWER:
b
65. A healthy relationship between a consumer and a marketer:
a.
encourages switching as routine purchases become boring.
b.
increases the selling effort required by the marketer to keep the consumer.
c.
generates inertia in consumers.
d.
makes the decision-making process simpler for the consumer.
ANSWER:
d
66. A firm is most likely to be vulnerable to satisfied customers’ switching behavior when the switching costs are:
a.
low and the firm operates in a business environment with high competitive intensity.
b.
high and the consumer dissatisfaction is low.
c.
high and the firm operates in a business environment with low competitive intensity.
d.
low and the consumer satisfaction is high.
ANSWER:
a
67. In the context of the outcomes of consumption, equity perceptions are:
a.
cognitive reactions to the environment around oneself.
b.
cognitions of two contrary events at the same time.
c.
cognitive reactions related to fairness or justice.
d.
cognitions about why the performance of a product turned out as it did.
ANSWER:
c
68. Which of the following statements is true of complaining behavior?
a.
Negative avoidance emotions like disgust are most likely to precede complaining behavior.
b.
Consumers who are more price sensitive are less likely to complain than consumers who are less price
sensitive.
c.
Consumers from individualist cultures are less likely to complain than consumers from collectivist cultures.
d.
Negative approach emotions like anger are most likely to precede complaining behavior.
ANSWER:
d
69. In the context of consumer share, which of the following statements is true of value and switching?
a.
Hedonic value is more strongly related to customer share for functional types of services.
b.
Customers who switch service providers are more likely to be loyal if they experience comparatively increased
hedonic value.
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c.
Utilitarian value plays a larger role in creating consumer commitment.
d.
For experiential types of services, such as fashion shopping, utilitarian value is more strongly related to
customer share.
ANSWER:
b
70. Elaine’s computer printer broke down shortly after she purchased it. When she called the toll-free service number, she
was told that she had to pay to speak to a service representative. It made her so unhappy that she told her friends and
family about the problems she faced and advised them against buying that brand. Elaine’s behavior in the given scenario
best exemplifies _____.
a.
a retributive measure
b.
distributive revenge
c.
procedural justice
d.
negative word-of-mouth
ANSWER:
d
71. Carla was unhappy with her haircut. Therefore, the next time she wanted a haircut, she went to a different hairstylist,
who she thought was more competent than her previous stylist. From a consumer behavior perspective, which of the
following terms best describes Carla’s behavior?
a.
Referencing
b.
Switching
c.
Consumer inertia
d.
Complaining behavior
ANSWER:
b
72. Henry likes the sandwiches from an Italian food truck near his office. He walks to the truck almost every day for
lunch. However, the days he is very busy at work, he orders a sandwich from his office cafeteria. The amount of time and
money that he spends to get lunch from the food truck is an example of _____ the truck gets from Henry.
a.
segment share
b.
retail share
c.
customer share
d.
market share
ANSWER:
c
73. Which of the following is true of loyalty cards or programs?
a.
They do not work in a two-tiered pricing system.
b.
They cannot tell much about customer groups’ demographics.
c.
They can be used to learn more about customer groups’ shopping patterns.
d.
They are most likely to change the loyalty of consumers with a strong economic orientation.
ANSWER:
c
74. Which of the following occurs when consumers spread information from one to another about favorable consumption
experiences?
a.
Positive word-of-mouth
b.
Positive disconfirmation
c.
Positive attribution
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d.
Switching behavior
ANSWER:
a
75. Alice has always used Hablar cell phones. She is very comfortable with the user interface of Hablar phones. Even
though she would like to buy a smartphone of a different brand, she is reluctant to get one because of the effort and time it
would take for her to get acquainted with a different user interface. In the context of switching behavior, Alice is primarily
worried about _____.
a.
transactional switching costs
b.
financial switching costs
c.
procedural switching costs
d.
relational switching costs
ANSWER:
c
76. Which of the following characteristics of relationship quality represents the perception that a buyer and a seller can
depend on each other?
a.
Personalization
b.
Communication
c.
Trust
d.
Equity
ANSWER:
c
77. Ruth had recently bought an expensive smartphone from a leading brand. However, within a few months of purchase,
the phone started malfunctioning. Ruth was so upset that she posted a scathing review on a popular complaint website.
Soon, other consumers also started sharing their poor experiences with the same brand. The news went viral on social
media. The given scenario is an example of _____.
a.
consumer inertia
b.
consumer cognitive dissonance
c.
retaliatory revenge
d.
negative public publicity
ANSWER:
d
78. _____ refers to the extent that consumers believe the processes involved in processing a transaction, performing a
service, or handling a complaint are fair.
a.
Restorative justice
b.
Retributive justice
c.
Distributive justice
d.
Procedural justice
ANSWER:
d
79. A few customers at Mackarel, a seafood restaurant, recently suffered from food poisoning and were hospitalized. One
of those customers was so angry that he tried to burn the restaurant down. This action of the disgruntled customer is an
example of _____.
a.
retaliatory revenge
b.
procedural justice
c.
retributive justice
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d.
restorative revenge
ANSWER:
a
80. Richard purchases his groceries from the neighborhood general store. He does not particularly like the store, but he
goes there because it is very conveniently located. In the given scenario, Richard’s buying behavior can be best described
as _____.
a.
consumer addiction
b.
positive disconfirmation
c.
consumer inertia
d.
negative disconfirmation
ANSWER:
c
81. Neil bought an expensive cell phone and felt that the price was justified for the features provided. However, he faced
some technical issues within a week of the purchase and took the cell phone to the nearest service center. He was
promptly attended by the customer support staff, and his cell phone was replaced with a new one. Neil was satisfied with
the way the company handled his complaint. In the given scenario, the satisfaction experienced by Neil can be best
explained by the concept of _____.
a.
restorative justice
b.
procedural justice
c.
retributive justice
d.
retaliatory justice
ANSWER:
b
82. Which of the following characteristics of relationship quality represents the understanding between a consumer and a
firm?
a.
Communication
b.
Competence
c.
Personalization
d.
Equity
ANSWER:
a
83. After Greg’s house was burglarized, he decided to install a new home security system. However, when he learned that
an installation would cost him $1000, he decided against it. In the given scenario, the cost for the installation is an
example of a:
a.
transactional switching cost.
b.
financial switching cost.
c.
relational switching cost.
d.
procedural switching cost.
ANSWER:
b
84. Which of the following types of switching costs refers to the emotional and psychological consequences of changing
from one brand/retailer/service provider to another?
a.
The procedural switching cost
b.
The financial switching cost
c.
The relational switching cost
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d.
The transactional switching cost
ANSWER:
c
85. _____ refers to the mutually profitable relationship between a buyer and a seller, which enables them to solve
conflicts.
a.
Competence
b.
Personalization
c.
Equity
d.
Communication
ANSWER:
c
86. Which of the following statements is true of true customer loyalty?
a.
It exists when a consumer habitually buys a product without any particular preference for it.
b.
It is not affected even if the loyalty is not returned by the marketer.
c.
It can be generated by creating high switching costs.
d.
It involves the feeling of attachment between a firm and its customer.
ANSWER:
d
87. In the context of brand loyalty, the portion of resources allocated to one brand from among the set of competing
brands is called _____.
a.
segment share
b.
retail share
c.
market share
d.
customer share
ANSWER:
d
88. Which of the following characteristics of relationship quality indicates that a seller treats a customer as an individual
with unique desires and requirements?
a.
Equity
b.
Personalization
c.
Communication
d.
Trust
ANSWER:
b
89. When a consumer becomes violent with employees and/or tries to vandalize a business in response to an
unsatisfactory experience, it is referred to as _____.
a.
procedural justice
b.
retributive justice
c.
restorative revenge
d.
retaliatory revenge
ANSWER:
d
90. Many customers who use online banking facilities are reluctant to change banks because of the effort it would take to
change automatic and online payment settings. The process involved is cumbersome and requires time and effort to cancel
old accounts and set up new ones. The costs associated with such liabilities that explain the customers’ reluctance to
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enhancing hedonic value. For the marketer, the regular consumer does not have to be resold and thus much
of the selling effort required to convert a new customer is not necessary.
change banks are referred to as _____.
a.
overhead costs
b.
variable costs
c.
switching costs
d.
fixed costs
ANSWER:
c
91. What are the two types of third-party endorsements?
ANSWER:
Answers will vary. A third-party endorsement represents one form of publicity in which an ostensibly
objective outsider (neither the customer nor the business) provides publicly available purchase
recommendations. These come in two forms.The first type makes recommendations based on cumulative
consumer ratings. TripAdvisor is one site that collects consumers’ post-consumption evaluations of
restaurants, airlines, and hotels, and provides an overall recommendation based on the average ratings.
Consumers tend to trust each other, so these ratings can be influential.The second type involves
recommendations from subject experts. Numerous media organizations endorse higher education institutes
and programs. Each has its own system for determining the best schools in each category. Universities put
considerable effort into finding a place near the top of at least one of these lists. The Academy of Motion
Pictures Oscar Award may be the best-known third-party product endorsement.
92. What are the different courses of action that a company can choose to handle negative public publicity?
ANSWER:
Answers will vary. When negative word-of-mouth spreads on a relatively large scale, it can result in negative
public publicity. Negative public publicity could even involve widespread media coverage. A firm can
handle negative public publicity by choosing one of the following courses of action:
• Do nothing; the news will eventually go away.
• Deny responsibility for any negative event.
• Take responsibility for any negative events and be visible in the public eye.
• Release information allowing the public to draw its own conclusion.
93. Why cannot a company depend on consumer inertia for long-term revenues?
ANSWER:
Answers will vary. A company cannot depend on consumer inertia for long-term revenues. The certainty of a
lengthy stream of revenues is much less for a customer acting only on inertia. In addition, the customer
acting on inertia alone is likely not contributing on the equity side of the equation as is the truly committed
customer. A firm that concentrates on repeated behavior alone, perhaps by always being convenient, can do
well but remains more vulnerable to competitors. The reason for the vulnerability is that competitors easily
duplicate tangible assets like convenience.
94. Explain how relationship quality impacts value for both customers and the firm.
ANSWER:
Answers will vary. Relationship quality represents the degree of connectedness between a consumer and a
retailer. When relationship quality is high, the prospects for a continued series of mutually valuable
exchanges exist. Relationship quality represents the health of the relationship so that, in all likelihood,
healthy relationships continue. When consumers are truly loyal, and this loyalty is returned by the marketer,
relationship quality is high. A healthy relationship between a consumer and a marketer enhances value both
for the consumer and the marketer. For the consumer, decision making becomes simpler, enhancing
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95. In the context of switching behavior, briefly discuss competitive intensity.
ANSWER:
Answers will vary. Competitive intensity refers to the number of firms competing for business within a
specific category. When competitive intensity is high and switching costs are low, a company is vulnerable
to consumers who will switch providers even when satisfied. The consumer has many companies vying for
the business, and changing presents little barrier. For example, a student today has many choices on where
and how to pursue a college degree. Thus, higher education institutions feel a great deal more competitive
pressure than they did a few decades ago. When competitive intensity is low, meaning there are few
alternatives for the consumer and switching costs are high, even dissatisfied consumers may return
repeatedly.
96. Briefly describe antiloyal customers.
ANSWER:
Answers will vary. Antiloyal consumers are those who will do everything possible to avoid doing business
with a particular marketer. These consumers generally dislike this particular company severely and the
negative emotions that go along with the aversion determine the subsequent reactions. Antiloyalty is often
motivated by a bad experience between a consumer and the marketer that the marketer could not redress.
Antiloyal customers often are former customers who switched and treat the former marketing firm as a jilted
partner. They obviously have no net positive lifetime value for the target firm. Moreover, these antiloyal
consumers, who are former customers, become perhaps the most frequent source for negative word-of-
mouth. Thus, antiloyal consumers can be a major force to reckon with.
97. Briefly explain the importance of customer commitment.
ANSWER:
Answers will vary. True consumer loyalty consists of both a pattern of repeated behavior as evidenced by
high customer share and a strong feeling of attachment, dedication, and sense of identification with a brand.
Customer commitment captures this sense of attachment, dedication, and identification. Highly committed
customers are true assets to a company. They are willing to sacrifice to continue doing business with the
brand and serve as a source of promotion by spreading positive word-of-mouth (WOM).
98. Explain the role that attribution theory plays in post-purchase evaluations.
ANSWER:
Answers will vary. Attribution theory plays a role in what happens after purchase and consumption. When a
consumer is highly engaged and has put a lot of effort into producing and creating the consumption
experience, he or she may be very much inclined to take credit when things go well. When things don’t go so
well at first, the confirmatory bias may kick in and the consumer may deny that things are going poorly. But
when things go well, the consumer is likely to become more convinced that the brand choice was correct,
become even more engaged with the brand, and be very willing to tell others about the experience by
spreading positive word-of-mouth. Thus, customer engagement in co–creation of both utilitarian and hedonic
value creates a stickiness that encourages consumers to tell others about their experience and exhibit loyalty-
related behaviors. In other words, consumers will stick with the choice regardless of whether the experience
is virtual (e.g., through online social networking) or actual (as with vacation resorts).
99. Briefly discuss three categories of switching costs.
ANSWER:
Answers will vary. Switching costs are the costs associated with changing from one choice
(brand/retailer/service provider) to another. Switching costs are one reason why a consumer may be
dissatisfied with a service provider but will continue to do business with them. Switching costs can be
divided into three categories:
• Procedural switching costs involve lost time and effort.
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