e.
Procedural switching cost
25. 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?
a.
Transactional switching costs
b.
Temporal switching costs
c.
Financial switching costs
d.
Procedural switching costs
e.
Relational switching costs
26. 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 cost
b.
Transactional switching cost
c.
Relational switching cost
d.
Financial switching cost
e.
Rational switching cost
27. When 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. The cost for the
installation is an example of a:
a.
procedural switching cost.
b.
transactional switching cost.
c.
financial switching cost.
d.
relational switching cost.
e.
rational switching cost.
28. 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.
Procedural switching cost
b.
Financial switching cost
c.
Relational switching cost
d.
Transactional switching cost
e.
Rational switching cost
29. 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?
a.
Procedural switching cost
b.
Financial switching cost
c.
Relational switching cost
d.
Rational switching cost
e.
Affective switching cost
30. The number of firms competing for business within a specific category is called competitive _____.
a.
density
b.
intensity
c.
inertia
d.
concentration
e.
share
31. Until 1984, American consumers had only one choice for telephone service—“Ma Bell.” However,
today consumers have many choices for “data” services. Consumers can choose AT&T, Verizon,
CenturyLink or relay on Internet service providers like Skype. This increase in the number of service
providers indicates an increase in _____.
a.
competitive intensity
b.
consumer inertia
c.
market associability
d.
consumer disconfirmation
e.
selective density
32. A firm is likely to be most vulnerable to customers’ switching behavior when:
a.
its customers are dissatisfied, the switching costs are low, and the firm operates in a
business environment with high competitive intensity.
b.
its customers are satisfied, the switching costs are high, and the firm operates in a business
environment with high competitive intensity.
c.
its customers are dissatisfied, the switching costs are high, and the firm operates in a
business environment with low competitive intensity.
d.
its customers are satisfied, the switching costs are low, and the firm operates in a business
environment with low competitive intensity.
e.
its customers are satisfied, the switching costs are high, and the firm operates in a business
environment with low competitive intensity.
33. 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?
a.
When its customers are satisfied with its product offerings
b.
When it operates in a business environment with high competitive intensity
c.
When its largest competitor’s product is priced much higher than its own
d.
When it is the only product of its type in a market
e.
When the cost of switching to competitors’ products is high
34. The portion of resources allocated to one brand from among the set of competing brands is called
_____.
a.
market share
b.
brand share
c.
customer share
d.
retail share
e.
segment share
35. 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.
a.
market share
b.
customer share
c.
brand share
d.
retail share
e.
segment share
36. Customer share is sometimes referred to as share of _____.
a.
wallet
b.
stock
c.
cost
d.
distribution
e.
equity
37. Customer share represents a behavioral component that is indicative of customer _____.
a.
apathy
b.
equity
c.
competence
d.
loyalty
e.
inertia
38. When a consumer tends to continue a pattern of behavior until some stronger force motivates him or
her to change, it is called consumer _____.
a.
inertia
b.
share
c.
apathy
d.
equity
e.
loyalty
39. Most of the time Richard goes to a neighborhood general store for his groceries. He does not like the
place, but it is very conveniently located and he just has to walk a few minutes to get there. Richard’s
buying behavior with regard to the neighborhood general store can be best described as customer
_____.
a.
disconfirmation
b.
equity
c.
inertia
d.
intensity
e.
entropy
40. Which of the following is a device that keeps track of the amount of purchasing a consumer has had
with a given marketer and once some level is reached, a reward is offered usually in terms of future
purchase incentives?
a.
A commitment program
b.
A customer share program
c.
A consistency program
d.
A loyalty program
e.
A gift program
41. Talbot’s clothing store offers a program where customers get a reward of $10 for every $500 spent. As
part of the program, the store keeps an account of the frequency of purchases as well amount spent on
each purchase by all its customers. This is an example of a _____ program.
a.
commitment
b.
loyalty
c.
customer share
d.
gift
e.
consistency
42. A sense of attachment, dedication, and identification with a brand or service provider is known as
customer _____.
a.
commitment
b.
inertia
c.
share
d.
empathy
e.
apathy
43. When it comes to running shoes, Brian is completely devoted to the Nike brand. He feels that the
brand defines who he is. Brian’s association with running shoes from Nike is an example of customer
_____.
a.
equity
b.
inertia
c.
empathy
d.
apathy
e.
commitment
44. Which of the following firms would be least vulnerable to competitors?
a.
A firm that offers generous return policies to its customers
b.
A firm that offers attractive bargain deals to its customers
c.
A firm that offers numerous loyalty programs to its customers
d.
A firm that offers a unique purchasing experience to its customers
e.
A firm that offers convenient purchasing experience to its customers
45. Consumers who will do everything possible to avoid doing business with a particular marketer are
called _____.
a.
market mavens
b.
antiloyal consumers
c.
disconfirming consumers
d.
laggards
e.
state-oriented consumers
46. Stan has never entered into any of the Resplendent Stores, a chain of retail stores, in more than ten
years. Because of a bad past experience, he harbors a particular aversion for them, and he has vowed
never to shop in any of their stores. Stan is best described as a(n) _____ with respect to Resplendent
Stores.
a.
antiloyal consumer
b.
disconfirming consumer
c.
late adapter
d.
laggard
e.
state-oriented consumer
47. Which of the following characteristics of relationship quality represents the consumer’s view of the
company and service providers as knowledgeable and capable?
a.
Competence
b.
Communication
c.
Equity
d.
Personalization
e.
Sale orientation
48. Which of the following characteristics of relationship quality represents the perception that the buyer
and seller can depend on each other?
a.
Trust
b.
Communication
c.
Equity
d.
Personalization
e.
Competence
49. Which of the following characteristics of relationship quality indicates that a buyer treats a seller as an
individual with unique desires and requirements?
a.
Competence
b.
Communication
c.
Equity
d.
Personalization
e.
Trust
50. Which of the following characteristics of relationship quality represents the understanding between a
consumer and a firm as essentially “speaking the same language”?
a.
Equity
b.
Competence
c.
Individualization
d.
Communication
e.
Personalization
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.
51. Refer to Dissatisfied Customer Scenario. How would Meg’s complaint benefit the salon?
a.
Meg’s complaint will be a valuable source of information for the salon.
b.
Meg’s complaint decreases the chances of her spreading negative WOM.
c.
Meg’s complaint can help the shop owner reduce Meg’s switching costs.
d.
Meg’s complaint decreases the likelihood of her returning to the same salon.
e.
Meg’s complaint increases the salon owner’s chances of being able to deny responsibility
for the infection.
52. Refer to Dissatisfied Customer Scenario. Meg told all her friends about the infection and warned them
to never go to that salon. This is an example of _____.
a.
retaliatory revenge
b.
customer inertia
c.
selective inertia
d.
rancorous revenge
e.
negative word-of-mouth
53. 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.
a.
procedural
b.
restorative
c.
distributive
d.
retaliatory
e.
rancorous
54. Refer to Dissatisfied Customer Scenario. Meg posts pictures of her infected toes online and describes
her experience in the salon on a social networking site. In no time, information on the Web goes viral
and badly affects the business of the salon as the number of customers reduces to a trickle. This is an
example of:
a.
disconfirming.
b.
procedural revenge.
c.
negative public publicity.
d.
distributive revenge.
e.
retaliatory revenge.
55. Refer to Dissatisfied Customer Scenario. If Meg ever gets another pedicure, she certainly won’t go
back to that nail salon. Which of the following postconsumption behaviors is this an example of?
a.
Switching behavior
b.
Retaliatory revenge
c.
Rancorous behavior
d.
Complaining behavior
e.
Deviant behavior
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.
56. Refer to Gourmet Restaurant Scenario. When Stella’s colleagues heard her predicament, they
suggested a place she might like. However, Stella decided against it as it was a three-hour drive from
where she stays and continued eating at Olive’s. Which of the following types of switching costs does
this represent?
a.
Transactional switching cost
b.
Temporal switching cost
c.
Financial switching cost
d.
Procedural switching cost
e.
Relational switching cost
57. Refer to Gourmet Restaurant Scenario. When Stella’s colleagues heard her predicament, they
suggested a place she might like. One of the reasons why Stella decided against it was that she found
the staff at Olive’s friendly and believed that they could understand her preferences in food and wine.
Which of the following types of switching costs does this represent?
a.
Transactional switching cost
b.
Temporal switching cost
c.
Financial switching cost
d.
Procedural switching cost
e.
Relational switching cost
58. Refer to Gourmet Restaurant Scenario. Stella vows that after the completion of six months, she is
never going to come back at Olive’s. Which of the following best reflects Stella’s postconsumption
behavior?
a.
Satisficing
b.
Loyalty
c.
Hoarding
d.
Switching
e.
Complaining
59. 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.
a.
market share
b.
customer share
c.
brand share
d.
retail share
e.
segment share
60. Refer to Gourmet Restaurant Scenario. Stella never liked the food at Olive’s, but she continued eating
there as it was convenient. Stella’s buying behavior with regard to Olive’s can be best described as
customer _____.
a.
empathy
b.
loyalty
c.
inertia
d.
intensity
e.
entropy
ESSAY
1. Explain critical incident in the context of consumer behavior.
2. What is a third party endorsement? What are its two types?
3. John and Beth went to a restaurant for dinner. When the soup arrived, it was cold. John complained to
the manager, but Beth did not. Describe how John is different from Beth in the context of consumer
behavior.
TOP: A-head: Complaining and Spreading WOM KEY: Bloom’s: Comprehension
4. You are a business consultant specializing in handling consumer complaints. Suggest some guidelines
that hotel employees should follow when responding to consumer complaints.
5. A woman claimed to have found a fingernail in her burger which she had bought 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.
6. Define switching behavior. Discuss the three categories of switching costs. Discuss which one(s)
would be the most significant if you changed your cellphone or other type of service provider.
7. Define customer commitment and describe its significance.
8. Explain how relationship quality impacts value for both customers and the firm.