Comsumer Relationships

Question 1

What is disconfirmation in consumer behavior?

Answer 1

Disconfirmation results from a cognitive comparison of what a consumer thought would happen (expectations) with the consumer’s actual performance perception.

Question 2

What is procedural justice?

Answer 2

Procedural justice is the extent that consumers believe the processes involved in processing a transaction and handling any complaints are fair.

Question 3

What leads to consumer satisfaction or dissatisfaction?

Answer 3

Post-consumption cognitions lead to an affective reaction most conventionally represented by consumer satisfaction or dissatisfaction.

Question 4

What is a critical incident in consumer-business exchanges?

Answer 4

A critical incident is an exchange between consumers and businesses that the consumer views as unusually negative with implications for the relationship.

Question 5

What is complaining behaviour?

Answer 5

Complaining behaviour is an action that occurs when a consumer actively seeks out someone with whom to share an opinion regarding a negative consumption event.

Question 6

Why do consumers complain?

Answer 6

Typically, a consumer who complains is seeking some type of action to address a perceived service failure resulting in a value deficit.

Question 7

What is the relationship between complaints and improvements?

Answer 7

Complaints are a prime source of information that can be used to make improvements.

Question 8

What are the two types of revenge consumers may exhibit?

Answer 8

1. Rancorous revenge - yelling insults at employees and making a public scene.
2. Retaliatory revenge - becoming violent with employees or vandalizing a business.

Question 9

What is negative word-of-mouth?

Answer 9

Negative word-of-mouth is an engagement action that takes place when consumers pass on negative information about a company from one to another.

Question 10

What is the last-mile problem in consumer loyalty?

Answer 10

The last-mile problem refers to how to go about the final removal of separation between consumer and producer in the supply chain.

Question 11

What is consumer inertia?

Answer 11

Consumer inertia is a situation in which a consumer tends to continue a pattern of behaviour until some stronger force motivates them to change.

Question 12

What is customer share?

Answer 12

Customer share is the portion of resources allocated to one brand from among the set of competing brands, indicative of customer loyalty.

Question 13

What is a loyalty program?

Answer 13

A loyalty program is a device that encourages repeated purchasing and keeps track of the engagement a customer has had with a given marketer once some level is reached.

Question 14

What is brand love?

Answer 14

Brand love is the extreme degree of attachment between a customer and a brand to the extent that the brand becomes part of that particular customer’s self-identity.

Question 15

What are preferred customer perks?

Answer 15

Preferred customer perks are rewards given to good customers, conditioning behaviour so that consumers repeat good behaviour.

Question 16

What are anti-loyal consumers?

Answer 16

Anti-loyal consumers are those who will do everything possible to avoid doing business with a particular marketer, often motivated by a bad experience.

Question 17

What is the role of value in consumer loyalty?

Answer 17

Consumers may maintain a relationship even when they experience dissatisfaction if they find value, both utilitarian and hedonic, in the relationship.

Question 18

What industries usually attract a lot of complaining customers?

Answer 18

Home improvement services
Used auto sales
Credit loan/debt services
Utilities

Question 19

What is the positive word-of-mouth?

Answer 19

An engagement action that occurs when consumers spread information from one to another about positive consumption experiences with companies

Question 20

Negative publicity

Answer 20

An action that occurs when negative WOM spreads on a relatively large scale, even involving media coverage.

Question 21

Complaining and spreading WOM
Doing Nothing

Answer 21

Doing nothing is neither the best nor the worst option
Taking action seems to be a responsible thing to do but the action might backfire and bring more attention to the issue.

Question 22

Denying responsibility

Answer 22

Denials can be tricky given the potential to bring attention to something that may not even be true.
Denials should be made only when the evidence unambiguously supports the actual truth.

Question 23

Taking Responsibility

Answer 23

If consumers blame the company for the event surrounding the negative publicity, then the potential repercussions appear serious.
Public action to deal with any consequences of a negative event can mollify any negative effects.

Question 24

Releasing information

Answer 24

A company may be able to release some counter PR to media that allows consumers to make up their own minds about the potential source of any negative PR

Question 25

Participating in Negative WOM

Answer 25

Consumers who believe they have not been treated with fairness or justice became particularly like to tell others and in some cases, report the incident to the media. Consumers who spread negative wow without complaining to the company itself are particularly likely to never do business with that company again.

Question 26

Implications of negative w.o.m.

Answer 26

One reason a consumer shares negative w.o.m is to try and present other consumers from falling victim to a company. Negative w.o.m can damage the image of the film on of an industry.

Question 27

Switching.

Answer 27

The act of a consumer choosing a competing choice, rather than repeating the previously purchased choice, on the nest purchase occasion.

Question 28

Switching costs

Answer 28

The costs associated with hanging from one choice to another
Procedural
Financial
Relational

Question 29

Procedural switching costs

Answer 29

The lost time and extended effort spent in learning ways of using some product offering. Examples: although apple computers have a stellar reputation for being easy to use many computer users stick with PC models. When consumers master a technologically complex product, they become very resistant to switching.

Question 30

Financial switching costs

Answer 30

The total economic resources that must be spent on invested as a consumer learns how to obtain value from a new product choice. Examples: a new can purchase an increase in insurance.

Question 31

What are relational switching costs?

Answer 31

The emotional and psychological consequences of changing from one brand/retailer/service provider to another.

Example: Letting a different stylist do one’s hair can induce feelings of unease and guilt.

Question 32

What factors determine consumer dissatisfaction?

Answer 32

Consumers become dissatisfied for various reasons, which influence their likelihood of returning on the next purchase occasion.

Question 33

What role do equity judgments play in switching behavior?

Answer 33

Equity judgments, especially perceptions of unfair treatment, can lead consumers to switch brands.

Question 34

What type of costs can prevent switching?

Answer 34

All types of functional costs can prevent switching, but relational barriers may be the most resistant to influence.

Question 35

Why do CS/D results often fail to predict future purchasing behavior?

Answer 35

Measurement difficulties associated with consumer satisfaction or dissatisfaction (CS/D) and switching costs are important reasons.

Question 36

Does dissatisfaction always lead to switching?

Answer 36

No, dissatisfaction does not always mean that the consumer is going to switch.

Question 37

What is competitive intensity?

Answer 37

The number of firms competing for business within a specific category.

Question 38

What is customer share?

Answer 38

The portion of resources allocated to one brand from among competing brands, also known as share of wallet.

Question 39

What is consumer inertia?

Answer 39

A situation in which a consumer tends to continue a pattern of behavior until a stronger force motivates them to change.

Question 40

What is the last-mile problem?

Answer 40

The challenge of removing the separation between consumer and producer in the supply chain, such as through home delivery or in-store pickup.

Question 41

What constitutes true consumer loyalty?

Answer 41

A pattern of repeated behavior evidenced by high customer share and customer commitment.

Question 42

What is customer commitment?

Answer 42

A sense of attachment, dedication, and identification with a brand.

Question 43

What is brand love?

Answer 43

The extreme degree of attachment between a customer and a brand, making the brand part of the customer’s self-identity.

Question 44

What are preferred customer perks?

Answer 44

Rewards given to good customers that condition behavior for repeated good behavior.

Question 45

What values can prevent consumers from switching?

Answer 45

Both utilitarian and hedonic value can be key to preventing switching and creating true loyalty.