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Exam 15: Consumer Relationships

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Question 41

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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'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

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Question 42

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Switching in a consumer behavior context refers to the times when a consumer chooses a competing choice,rather than the previously purchased choice,on the next purchase occasion.

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Question 43

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Dissatisfied consumers are more likely to complain than angry consumers.

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.

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:

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

Which of the following characteristics of relationship quality indicates that a buyer treats a seller as an individual with unique desires and requirements?

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?

Customers who have switched service providers are less likely to become loyal customers when they experience increased hedonic value compared to the previous service provider.

For functional types of services,hedonic value is more strongly related to customer share than is utilitarian value.

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.

Many consumers who use online banking facilities are reluctant to change banks because of the effort it would take to change automatic and online payment accounts.The change requires a lot of hassle,including time and effort to cancel old accounts and setting up new ones.There is also the probability of missing bill payments altogether.The costs associated with such liabilities explain the customers' reluctance to change.These costs are called _____ costs.

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

A disgusted or hopeless consumer is more likely to complain than an angry consumer.

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 _____.

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

In the social media world,the key is to respond quickly before negative news goes viral.

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.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 _____.

When negative WOM spreads on a relatively large scale,it can result in _____.

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 _____.