SM - Dysfunctional Customer Behaviour

Question 1

What is the traditional view of customer behaviour in marketing?

Answer 1

Traditional marketing assumes customers and employees behave functionally and that dissatisfaction is unintentional.

This view is limited and does not account for dysfunctional or misbehaving customers.

Question 2

What does the critical analysis of traditional customer behaviour view suggest?

Answer 2

The traditional view assumes idealistic conditions where customers are inherently rational, cooperative, and not disruptive.

However, this ignores complex realities where customers may not act in a functional or predictable manner.

Question 3

Provide an example of dysfunctional customer behaviour in the hospitality industry.

Answer 3

A customer might choose to misuse the system, taking up more resources than they should without any direct compensation.

This illustrates how customer behaviour can be unpredictable and disruptive.

Question 4

What is an example of dysfunctional customer behaviour in retail?

Answer 4

Customers may act entitled, demanding excessive discounts or engaging in aggressive behaviour.

Such behaviour disrupts the normal functioning of the service process.

Question 5

What assumption does traditional marketing literature make about consumer behaviour?

Answer 5

It assumes consumer morality and functionality, meaning customers will act in a way that benefits the service or organization.

Question 6

Why is the assumption of traditional marketing flawed?

Answer 6

Not all customers behave in a functional or moral way. Customers can intentionally or unintentionally disrupt the service.

Question 7

What can cause service failure according to traditional marketing analysis?

Answer 7

Service failure can sometimes be due to customer misbehaviour.

Question 8

What critical oversight does traditional marketing often have regarding consumer behaviour?

Answer 8

It often overlooks the potential for dysfunctional behaviour, such as deliberate disruption, entitlement, or even fraud.

Question 9

What ideology might companies adhere to that can lead to problems in service management?

Answer 9

The ‘king-customer’ ideology.

Question 10

What issue does Amazon face related to customer behaviour?

Answer 10

Amazon faces issues with ‘serial returners’ who exploit the return policy.

Question 11

What impact do ‘serial returners’ have on Amazon?

Answer 11

They affect profitability and create tension with staff who manage these returns.

Question 12

Fill in the blank: Traditional marketing often overlooks the potential for _______ behaviour.

Answer 12

[dysfunctional]

Question 13

True or False: Traditional marketing assumes that all customers will behave in a way that benefits the organization.

Answer 13

True

Question 14

What types of misbehaviour can disrupt service according to traditional marketing flaws?

Answer 14

Dysfunctional behaviour such as deliberate disruption, entitlement, or fraud.

Question 15

What is dysfunctional customer behaviour (DCB)?

Answer 15

DCB refers to actions by customers—whether intentional or unintentional—that disrupt otherwise functional service, harming the organization, employees, or other customers.

Source: Harris and Reynolds, 2003.

Question 16

What challenges does dysfunctional customer behaviour present?

Answer 16

It is not always easy to differentiate between intentional and unintentional actions, complicating how a service business can effectively address and prevent these behaviours.

Customers may be unaware of their disruptive impact.

Question 17

Give an example of dysfunctional customer behaviour in the airline industry.

Answer 17

Passengers who repeatedly violate safety regulations or misbehave on flights can disrupt service and safety.

This leads to a negative experience for both staff and fellow customers.

Question 18

What is a ‘jaycustomer’?

Answer 18

A jaycustomer is a customer who acts in a thoughtless or abusive manner, causing problems for the firm, its employees, and other customers.

Source: Lovelock et al., 2009.

Question 19

What negative impacts do jaycustomers have?

Answer 19

They create a toxic environment for service employees and other customers, causing reputational damage for businesses.

Jaycustomers often abuse their power.

Question 20

Provide an example of jaycustomer behaviour.

Answer 20

Uber drivers and riders often face aggressive behaviour like shouting or verbal abuse.

This has led to enforced safety protocols.

Question 21

What are the eight forms of dysfunctional customer behaviour?

Answer 21

The eight forms are:
* Compensation Letter Writers: Write fake complaints to get compensation.
* Undesirable Customers: Unwanted service users (e.g., jayfamilies, drug users, or homeless people).
* Property Abusers: Vandalize or remove items from the service setting.
* Sexual Predators: Engage in sexual harassment or abuse.
* Covert Behaviour: Subtle or hidden disruptive actions.
* Overt Behaviour: Openly disruptive actions.
* Financially Motivated: Seek financial gain from service exploitation.
* Non-Financially Motivated: Engage in disruptive behaviour without seeking financial gain.

Question 22

How can property abusers affect a business?

Answer 22

They can directly affect profitability by vandalizing or damaging property.

Example: Vandalizing hotel rooms.

Question 23

What are the potential motives behind dysfunctional customer behaviour?

Answer 23

The potential motives are:
* Financially Motivated: Seeking unjust compensation or refunds.
* Non-Financially Motivated: Driven by personal or social reasons.
* Vindictive: Causing harm out of anger or revenge.

Question 24

Why is understanding the motive behind dysfunctional behaviour important for businesses?

Answer 24

It helps businesses decide how to respond effectively to the behaviour.

Financially motivated behaviours often arise from service failures.

Question 25

Give an example of non-financially motivated behaviour in a restaurant.

Answer 25

A customer may throw a tantrum over a trivial issue like waiting time, causing distress to employees. ## Footnote This behaviour can damage the overall customer experience.

Question 26

What are the consequences of dysfunctional customer behaviour to employees?

Answer 26

Emotional distress, burnout, poor morale, and dissatisfaction. ## Footnote Dysfunctional customer behaviour can create a toxic atmosphere for employees, affecting their well-being.

Question 27

What are the consequences of dysfunctional customer behaviour to organizations?

Answer 27

Loss of reputation, increased costs, reduced service quality, and potential legal issues. ## Footnote Organizations must manage dysfunctional behaviour to maintain their reputation and financial health.

Question 28

What are the consequences of dysfunctional customer behaviour to fellow customers?

Answer 28

Discomfort, dissatisfaction, and a negative experience. ## Footnote Fellow customers often bear the brunt of disruptive behaviour, which can ruin their experience.

Question 29

What critical analysis can be made about dysfunctional customer behaviour?

Answer 29

It can undermine the service environment by creating a toxic atmosphere for both employees and other customers. ## Footnote Poor management of dysfunctional behaviour risks declining performance and reduced customer loyalty.

Question 30

What case study illustrates the consequences of dysfunctional customer behaviour?

Answer 30

Delta Airlines implemented strict penalties for unruly passengers after incidents disrupted flights and hurt employee morale. ## Footnote This example shows how serious the implications can be for service businesses.

Question 31

What strategies can be used to manage dysfunctional customer behaviour?

Answer 31

* Employee Training * Clear Policies * Service Recovery * Customer Segmentation ## Footnote Proactive management can significantly reduce the likelihood of encountering dysfunctional behaviour.

Question 32

What is the role of employee training in managing dysfunctional customer behaviour?

Answer 32

Teach employees to handle difficult customers effectively. ## Footnote Proper training equips employees with the skills to defuse tense situations.

Question 33

What is the importance of clear policies in managing dysfunctional customer behaviour?

Answer 33

Implement policies to identify and deal with disruptive customers. ## Footnote Clear guidelines help employees know how to respond to challenging situations.

Question 34

What is service recovery in the context of managing customer behaviour?

Answer 34

Provide quick resolution to service failures to prevent escalation. ## Footnote Effective service recovery can turn a negative experience into a positive one.

Question 35

What does customer segmentation involve in managing dysfunctional behaviour?

Answer 35

Identify and target customers based on behavioural tendencies. ## Footnote Understanding customer behaviours allows businesses to tailor their approaches.

Question 36

What critical analysis can be made regarding proactive management of dysfunctional behaviour?

Answer 36

Proactive management through employee training and clear policies can reduce likelihood of dysfunctional behaviour occurring. ## Footnote Once behaviour has started, recovery mechanisms are crucial to mitigate consequences.

Question 37

What example demonstrates effective management of difficult customers?

Answer 37

Ritz-Carlton empowers employees to make decisions, like offering free services or discounts. ## Footnote This empowerment ensures even disgruntled customers leave satisfied.

Question 38

What are the main drivers of dysfunctional customer behaviour?

Answer 38

* Frustration or Dissatisfaction * Entitlement * Cultural and Social Influences ## Footnote Recognizing these drivers helps businesses to design better systems to mitigate risks.

Question 39

How does frustration or dissatisfaction drive dysfunctional customer behaviour?

Answer 39

Unmet expectations lead to negative customer actions. ## Footnote Customers often react poorly when their expectations are not met.

Question 40

What role does entitlement play in dysfunctional customer behaviour?

Answer 40

Customers who feel they deserve special treatment or compensation. ## Footnote This sense of entitlement can lead to unreasonable demands.

Question 41

How do cultural and social influences affect customer behaviour?

Answer 41

Social norms or past experiences shape how customers behave. ## Footnote Understanding these influences is essential for effective customer management.

Question 42

What critical analysis can be made about the drivers of dysfunctional behaviour?

Answer 42

Dysfunctional behaviour may stem from deep-rooted emotional or psychological factors, not just poor service. ## Footnote Addressing these underlying issues is key to prevention.

Question 43

What case study exemplifies customer frustration leading to dysfunctional behaviour?

Answer 43

Apple has faced frustration from customers expecting higher service levels, leading to increased complaints. ## Footnote This highlights the importance of managing customer expectations.

Question 44

How has the era of the customer changed the view of customer behaviour?

Answer 44

The customer has moved from being viewed as a 'king' to a 'dictator,' raising concerns about excessive control. ## Footnote This shift influences how businesses interact with customers.

Question 45

What critical analysis can be made regarding customer empowerment?

Answer 45

While it has led to greater innovation and service quality, it has also created customer entitlement. ## Footnote Businesses feel pressured to cater to unreasonable demands, resulting in dysfunction.

Question 46

What example illustrates customer frustration in the era of the customer?

Answer 46

Uber’s dynamic pricing model has led to accusations of unfair pricing and aggressive interactions. ## Footnote This situation highlights the challenges of balancing customer demands with operational realities.