Exam 15: Consumer Relationships

Explain how relationship quality impacts value for both customers and the firm.

Under conditions of low competitive intensity and high switching costs,dissatisfied consumers are almost certain to switch.

A consumer chooses a competing choice,rather than a previously purchased choice,on the next purchase occasion.This behavior is called _____.

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

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 _____.

Consumers who will do everything possible to avoid doing business with a particular marketer are called _____.

Negative postconsumption behaviors can turn into positive value experiences if firms manage them properly.

Which of the following terms refers to exchanges between consumers and business that the consumer views as unusually negative?

A consumer who yells,insults,and makes a public scene in an effort to harm a business after receiving poor service is engaging in _____ revenge.

Market share is also known as share of wallet.

A few customers at China Palace,a Chinese restaurant,recently suffered from food poisoning and were admitted in the hospital.One of these customers was so angry that he tried to burn the restaurant down a week later after the food-poisoning incident.This disgruntled customer was engaged in _____ revenge.

A firm is likely to be most vulnerable to customers' switching behavior when:

Define customer commitment and describe its significance.

A loyalty card/program 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.

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. -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?

Complaining behavior occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event.

When competitive intensity is high and switching costs are low,a company is vulnerable to consumers who will switch providers even when customers are satisfied.

A 3rd Party Endorsement represents one form of publicity in which an ostensibly objective outsider (neither the customer nor business)provides publicly available purchase recommendations.

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.

Financial switching costs consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice.