TBChap 018

Chapter 18
Postpurchase Processes, Customer Satisfaction, and Customer

Commitment
Multiple Choice Questions

1. The increase in product valuation based on "mere" ownership is called
A.
B.
loyalty.
mere touch.
C.
the endowment effect.
D.
the IKEA effect.
E.
the compromise effect.
2. Which of the following is NOT a possible outcome once a consumer is satisfied?
A.
committed customer
B.
discontinued use
C.
repeat purchases
D.
increased use
E.
All of the above are possible outcomes.
3. Doubt or anxiety regarding a purchase a consumer has made is known as _____.
A.
postpurchase worry
B.
postpurchase guilt
C.
postpurchase dissonance
D.
postpurchase shame
E.
postpurchase fear
18-1
Copyright 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4. Which of the following is true regarding postpurchase dissonance?
A. All consumer purchase decisions are followed by postpurchase dissonance of some sort.
B. The importance of the decision to the consumer is one factor that influences the probability and
magnitude of postpurchase dissonance.
C. The individual's tendency to experience anxiety is not related to postpurchase dissonance.
D. The easier it is to alter the decision, the more likely postpurchase dissonance will be.
E. Nominal decision making usually results in the greatest magnitude of postpurchase
dissonance.
5. The probability of a consumer experiencing postpurchase dissonance, as well as the magnitude
of such dissonance, is a function of which of the following?
A.
the degree of commitment or irrevocability of the decision
B.
the importance of the decision to the consumer
C.
the difficulty of choosing among the alternatives
D.
the individual's tendency to experience anxiety
E.
all of the above
6. Connie just purchased her first new car, and she's actually feeling a little bad about it. She's
concerned about how much money she spent and how long she will be making car payments.
She's not sure she made the right choice, either. She liked another car a little better, but ended up
purchasing another model. Connie is experiencing _____.
A.
postpurchase worry
B.
postpurchase guilt
C.
D.
postpurchase shame
E.
postpurchase fear
7. Which of the following is NOT an action a consumer may utilize to reduce dissonance?
A.
increase the desirability of the brand purchased
B.
decrease the desirability of rejected alternatives
C.
decrease the importance of the purchase decision
D.
reverse the purchase decision (return the product before use)
E. increase the importance of alternatives that were not considered in the purchase initially
18-2
8. Carla continued to search for information on cars even after she purchased one. She would go
over her decision in her head and pay attention to ads that featured the car she bought. She was
also noticing how many other people drove her model of car, which made her feel more confident
that she made a wise decision. Carla is attempting to reduce _____.
A.
consumption guilt
B.
C.
postpurchase shame
D.
postpurchase fear
E.
consumption anxiety
9. Hailey purchased furniture for her living room and spent quite a bit of money. After she purchased
it, she started regretting that she spent so much, and she wasn't sure she liked the furniture. To
make herself feel better, she told herself that the other furniture she was considering really wasn't
that good and probably would not last as long as the furniture she ended up purchasing. Which of
the following is Hailey using to reduce her postpurchase dissonance?
A.
increasing the desirability of the brand purchased
B.
decreasing the desirability of rejected alternatives
C.
decreasing the importance of the purchase decision
D.
E.
reversing the purchase decision

increasing the importance of the purchase decision
10. Negative emotions or guilt feelings aroused by the use of a product or a service are referred to as
_____.
A.
postpurchase anxiety
B.
consumption guilt
C.
consumption anxiety
D.
E.
consumption dissonance
18-3
11. Rebecca is a single woman in her 40s. She sold her Honda Civic and bought an Acura CSX,
which is considerably more expensive. She was going to her brother's house with her mother, and
she asked her mother to drive in her car instead of Rebecca's new one. She didn't want her
brother to see that she had purchased an expensive car for herself. Rebecca was experiencing
_____.
A.
B.
consumption guilt
C.
consumption anxiety
D.
E.
12. Using a product in a new way is referred to as _____.
A.
counterfactual thinking
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
extended use thinking
13. The external ice cube chute on Cade's refrigerator door was not working properly. She could hear
the ice falling into the chute, but nothing would come out. She looked inside and realized there
was a solid block of ice clogging the chute, and she couldn't get it loose. Cade decided to use a
hair dryer to melt the ice, and it worked. Cade's using a hair dryer in a new way represents
_____.
A.
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
14. Using WD-40 as an additive to fish bait is an example of _______.
A.
counterfeit thinking
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
18-4
15. Why must manufacturers design products with both the primary purpose and other potential uses
in mind?
A.
B.
C.
D.
E.
consumers demand it
competition requires it
to be able to promote secondary uses
stringent product liability laws
to save on research and development costs
16. Which of the following occurs when a consumer actively acquires a product that is not used or
used only sparingly relative to its potential use?
A.
B.
C.
D.
E.
consumption guilt
nonconsumption guilt
product nonuse
prefactual thinking
17. Disposition of the product or the product's container may occur _____ product use.
A.
during
B.
after
C.
D.
E.
before
A and B
A, B, and c
18. For which product is no disposition involved?
A.
ice cream cone
B.
laundry detergent
C.
soft drink
D.
E.
clothing
electronics
18-5
19. Carl and his family purchased a new home, and the builder left half-empty paint cans in the
garage. Carl doesn't know what to do with them because he cannot put them out in the regular
trash. Carl is concerned with which of the following with regard to the paint?
A.
purchase
B.
C.
D.
E.
use
disposition
consumption
product nonuse
20. Exploding demand and short product life spans for high-tech gadgets such as cell phones,
personal computers, and various other personal electronic devices is creating growing concerns
over _____.
A.
e-waste
B.
poisonous waste
C.
hazardous waste
D.
E.
reusable waste
recyclable waste
21. Which disposition alternative is the most widely used by consumers?
A.
B.
C.
D.
trade in
recycle
throw away
give away
E.
sell
22. Which of the following is NOT an alternative if a consumer decides to retain a product's package?
A.
B.
C.
D.
E.
store it
use it for original purpose
recycle it
use it for a new purpose
All of the above are alternatives in this situation.
18-6
23. Which of the following is an alternative once a consumer has decided to get rid of a product?
A.
B.
C.
D.
E.
sell it
give it away
loan it to someone
throw it away
all of the above
24. Which of the following is FALSE regarding the way in which disposition decisions can affect a
firm's marketing strategy?
A. For most durable goods, consumers are reluctant to purchase a new item until they have
"gotten their money's worth" from the old one.
B. Disposition sometimes must occur before acquisition of a replacement because of space or
financial limitations.
C. Frequent decisions by consumer to sell, trade, or give away used products results in a large
used-product market that can reduce the market for new products.
D. The United States is a completely throwaway society, and consumers are willing to purchase
new products without concern for waste.
E. Environmentally sound disposition decisions benefit society as a whole and thus the firms that
are part of that society.
25. Which type of sale occurs when one consumer sells a product directly to another with or without
the assistance of a commercial intermediary?
A.
direct-to-consumer sale
B.
consumer-to-consumer sale
C.
personal sale
D.
private sale
E.
direct marketing
26. Jon purchased an antique watch on eBay from another consumer. Which type of sale is this
known as?
A.
B.
C.
personal sale
D.
private sale
E.
electronically mediated sale
18-7
27. An outlet or brand whose performance confirms a low-performance expectation generally will
result in _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
anger
28. Rod wasn't expecting much from the painters who came to his house. True to form, they did not
do a good job and confirmed his low-performance expectations. Rod is most likely experiencing
_____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
anger
29. A brand whose perceived performance falls below expectations generally produces _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
fear
30. Kristen purchased a chair and ottoman from a national chain furniture store. After only six
months, the fabric started to fade and tear in some spots. While she didn't spend much money on
this chair, she did expect it to last longer than that. Kristen most likely experienced _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
E.
elation
guilt
18-8
31. When perceptions of product performance match expectations that are at or above the minimum
performance level, _____ generally results.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
E.
elation
surprise
32. Jose and his family, all Mexican by birth, went to dine at a new Mexican restaurant in Houston,
which is home to many outstanding Mexican restaurants. They were expecting authentic Mexican
food, and they got it. They most likely experienced _____.
A.
B.
satisfaction
dissatisfaction
C.
amazement
D.
nonsatisfaction
E.
surprise
33. Which of the following means that the consumer is enthusiastic about a particular brand and is
somewhat immune to actions by competitors?
A.
satisfaction
B.
commitment
C.
market maven
D.
brand leverage
E.
brand fanatic
34. Pam and her friends ate at a new Italian restaurant, and the food, service, and ambiance
exceeded their expectations. They all decided that this was the only Italian restaurant they will
ever go to again in their town. This is an illustration of _____.
A.
B.
C.
nonsatisfaction
extended decision making
commitment
D.
relationship marketing
E.
customer value
18-9
35. Which of the following factors is the MOST likely reason consumers change providers of a
service?
A.
core service failure
B.
service encounter failure
C.
pricing
D.
attraction by competitors
E.
ethical problems
36. Eric booked a hotel through hotels.com. However, when he arrived at the hotel, they had no
record of his reservation, and he was unable to get a room. He decided then that he would never
use this service again. Which reason for changing providers does this represent?
A.
B.
C.
pricing
D.
E.
ethical problems
37. Service employees who are uncaring, impolite, unresponsive, or unknowledgeable will cause
consumers to switch providers for which reason?
A.
B.
C.
pricing
D.
E.
ethical problems
18-10
38. Kimberly loves the ham and turkey from the Heavenly Ham store. There is only one store in her
town, though, and it is pretty far away. She goes that direction on Saturdays for her daughter's
music lesson, but by the time it's over and she's heading home, the store is already closed.
Sometimes, she brings a cooler and stops there before her daughter's lesson, but most of the
time she forgets to bring the cooler. She usually ends up buying lunch meat at the grocery deli.
Which reason for changing providers does this represent?
A.
B.
C.
D.
E.
involuntary switching
responses to service failures
pricing
inconvenience
ethical problems
39. Simon was dissatisfied with the meal and service he received at a restaurant, so he complained.
The manager came out and was arrogant to Simon, and Simon felt like he was trying to blame
him for the bad experience he had by saying he was too picky. Simon vowed never to eat at that
restaurant again. Which reason for changing providers does this represent?
A.
B.
C.
pricing
D.
E.
ethical problems
40. Renee has been going to the same dentist for years. However, her employer changed her dental
insurance plan, and her dentist was not part of the plan. She had to switch to an approved dentist.
Which reason for changing providers does this represent?
A.
B.
C.
pricing
D.
E.
ethical problems
18-11
41. Failure on a given product or service characteristic often has a stronger effect on consumers than
success on that same characteristic. This is known as ______.
A.
technology bias
B.
service design flaw
C.
customer failure
D.
negativity bias
E.
financial failure
42. What are the two dimensions of performance for products?
A.
instrumental and symbolic
B.
latent and manifest
C.
immediate and delayed
D.
direct and indirect
E.
consummatory and instrumental
43. Which dimension of product performance relates to the physical functioning of the product?
A.
affective
B.
C.
D.
E.
direct
instrumental
attributional
consummatory
44. Leon is concerned with the reliability and durability of laptop computers he is considering
purchasing. This represents which dimension of product performance?
A.
affective
B.
C.
D.
E.
direct
instrumental
symbolic
consummatory
18-12
45. Which dimension of product performance relates to aesthetic or image-enhancement

performance?
A.
affective
B.
C.
D.
E.
direct
instrumental
symbolic
consummatory
46. Monique is buying a new coat for the winter. While she is concerned with how well the coat will
keep her warm, she is also concerned with how stylish it will make her look. Her concern for
stylishness represents which dimension of product performance?
A.
affective
B.
C.
D.
E.
direct
instrumental
symbolic
consummatory
47. The emotional response that owning or using the product or outlet provides is known as _____.
A.
affective performance
B.
direct performance
C.
instrumental performance
D.
symbolic performance
E.
consummatory performance
48. Dawn and her two daughters went to see Pride & Prejudice at the movie theater. They all loved
the movie and came out saying, "We're so glad she married Mr. Darcy!" This movie provided them
with _____.
A.
B.
direct performance
C.
D.
E.
18-13
49. What is the first decision a dissatisfied customer will make?
A.
whether to complain to the store or to the manufacturer
B.
whether or not to stop buying that brand
C.
whether or not to take any external action
D.
E.
whether or not to initiate legal action

whether or not to complain to a government agency
50. Ronald is dissatisfied with a product he has bought. What is the first decision Ronald will make
with regard to his dissatisfying situation?
A.
B.
C.
D.
E.

51. A consumer's decision of whether or not to take action when he or she is dissatisfied is a function
of which of the following?
A.
B.
importance of the purchase to the consumer

ease of taking action
C. consumer's existing level of overall satisfaction with the brand or outlet

D.
E.
characteristics of the consumer involved

all of the above
52. Even if a dissatisfied consumer takes no external action, which of the following is likely?
A.
B.
C.
D.
E.
will engage in negative work-of-mouth

will stop buying that brand
will have a less favorable attitude toward the store or brand
will stop buying at that store
all of the above
18-14
53. Which of the following is TRUE regarding word-of-mouth (WOM)?
A.
WOM is a minor factor in consumer behavior.
B.
Consumers trust WOM more than many other sources.
C.
Satisfaction yields more WOM than does dissatisfaction.
D. Consumers do not give WOM much merit, especially negative WOM.

E.
Marketers are not concerned about WOM.
54. Employees who deal directly with consumers are known as _____.
A.
foot soldiers
B.
clerks
C.
consumer-level employees
D.
frontline employees
E.
primary employees
55. Savannah works at the front desk at a Marriott Hotel. If a guest has a complaint, she is
empowered to make amends up to a certain amount without her supervisor's approval. Savannah
is known as a _____.
A.
decision maker
B.
key employee
C.
consumer-level employee
D.
frontline employee
E.
primary employee
56. Factors such as information quality, navigation, price, merchandise availability, purchase process,
and order tracking are part of which dimension in online satisfaction and dissatisfaction?
A.
B.
C.
D.
E.
security and privacy

fulfillment and reliability
customer service
website design and interaction
all of the above
18-15
57. Factors such as timely delivery, order accuracy, billing accuracy, and merchandise quality are part
of which dimension in online satisfaction and dissatisfaction?
A.
B.
C.
D.
E.

customer service
all of the above
58. Customer complaints communicated directly to the company and no one else are important
because _____.
A.
they can alert the firm to problems
B.
enable problems to be solve
C.
neutralize negative WOM
D.
E.
enable dissatisfied customers to be more satisfied

all of the above
59. Which of the following is TRUE regarding the Net Promoter Score (NPS)?
A.
B.
C.
It works well in all industries.

It asks WOM questions.
It calculates satisfaction scores.
D.
It is difficult to use.
E.
All of the above are true.
60. _____ continue to buy the same brand though they do not have an emotional attachment to it.
A.
B.
C.
D.
E.
Repeat purchasers
Brand loyals
Committed customers
Satisfied buyers
Referred buyers
18-16
61. Kevin buys the same brand of clothing all the time. He continues to buy it because it fits him well
and the price is right, but he does not have an emotional attachment to it. Kevin is an example of
a(n) _____.
A.
trapped purchaser
B.
committed customer
C.
repeat purchaser
D.
nonsatisfied customer
E.
indifferent purchaser
62. The costs of finding, evaluating, and adopting another solution are known as _____.
A.
incurred costs
B.
switching costs
C.
effort costs
D.
balancing costs
E.
committed costs
63. Sandy uses online banking, and her bank charges her $4.99 per month. However, she has seen
ads for a competing bank offering free online banking services. She'd like to switch, but she
realized that it might be difficult to do because she has several of her bill payments set up as
automatic debits. The cost of changing to another bank represents Sandy's _____.
A.
incurred costs
B.
switching costs
C.
effort costs
D.
balancing costs
E.
committed costs
64. Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting
_____.
A.
brand loyalty
B.
brand leverage
C.
brand image
D.
brand equity
E.
brand bias
18-17
65. Joyce will only drink Pepsi, and she feels an emotional attachment to it. That is the brand she was
brought up on and is the one she continues to drink every day. Joyce is exhibiting _____.
A.
brand loyalty
B.
brand leverage
C.
brand image
D.
brand equity
E.
brand bias
66. Which type of customer has an emotional attachment to the brand or firm?
A.
repeat purchaser
B.
satisfied buyer
C.
total buyer
D.
committed customer
E.
affective customer
67. George has used the same company for his car and home insurance for more than 20 years. Any
claim he has made has been handled fairly and quickly. A major hurricane came through his area
causing many individuals, including George, and business owners to lose everything. While he
was hearing about so many insurance claim nightmares, he knew his company would come
through because he trusts this company. George is an example of a(n) _____.
A.
repeat purchaser
B.
satisfied buyer
C.
total buyer
D.
committed customer
E.
affective customer
68. Which of the following is FALSE regarding committed customers?
A. They are unlikely to consider additional information when making a purchase.

B.
They are resistant to competitors' marketing efforts.
C. They are less likely to forgive an occasional product or service failure.

D.
They are likely to be a source of positive word-of-mouth.
E. They are more profitable to the firm than mere repeat purchasers.
18-18
69. The term used to refer to turnover in a firm's customer base is _____.
A.
turnover
B.
C.
D.
E.
churn
attrition rate
turn ratio
defection rate
70. Expenses associated with advertising, establishing a new account, and mailing catalogs are
examples of _____.
A.
churn
B.
opportunity costs
C.
switching costs
D.
contribution costs
E.
acquisition costs
71. Which of the following is a source of increased customer profitability over time?
A.
B.
C.
D.
E.
increased sales volume

lower costs
referrals
price premium
all of the above
72. Which of the following is NOT a source of increased customer profitability over time?
A.
B.
C.

lower costs
referrals
D.
increased churn
E.
price premium
18-19
73. _____ refers to the fact that repeat and particularly committed customers tend to buy the brand
consistently rather than waiting for a sale or continually negotiating price.
A.
B.
Acquisition cost
Referral
C.
Price premium
D.
Price indifferent
E.
Price insensitive
74. For which type of firm has research shown that reducing the number of customers who leave by 5
percent resulted in the highest percentage increase in average profits per customer?
A.
B.
auto services
branch banks
C.
insurance brokerage
D.
industrial laundry
E.
credit insurance
75. Marketing efforts focused on a firm's current customers are generally termed _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.
acquisition marketing
76. An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is
called _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.
18-20
77. Marriott Rewards customers earn points whenever they stay at any Marriott property. Louis is in
this program, and he travels quite a bit because he works in sales. He usually stays at a
Courtyard by Marriott, and when he walks into the lobby, there is a sign by the desk welcoming
him by name as well as other Marriott Rewards customers who might be staying there. This
ongoing relationship between Louis and Marriott is an example of _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.
78. Which of the following is a key element of relationship marketing?
A.
B.
C.
customizing the relationship to the individual customer

pricing in a manner to encourage loyalty
augmenting the core service or product with extra benefits
D. marketing to employees so that they will perform well for customers

E.
all of the above
79. Which of the following is NOT a key element of relationship marketing?
A. developing a core service or product around which to build a customer relationship

B.
C.

D. marketing to employees so that they will perform well for customers

E.
standardizing the relationship across customers
80. Every time Hannah buys a sandwich at Super Subs, she gets a stamp on a card. Once she has
10 stamps, she'll get a free sandwich. This is an example of a(n) _____.
A.
food stamp program
B.
acquisition program
C.
customer loyalty program
D.
E.
tie-in program
overlay program
18-21
True / False Questions

81. Nominal and most limited decision making will not produce postpurchase dissonance.
True
False
82. Consumers might experience guilt by the use of a product or a service.

True
False
83. Most consumer purchases involve relatively high-involvement decision making, and therefore,
arouse little or no postpurchase dissonance.
True
False
84. Sometimes, consumers purchase products and do not use them.

True
False
85. Disposition of the product or the product's container may occur before, during, or after product
use.
True
False
86. A consumer selling something to another individual through an online intermediary (i.e., eBay) is
known as a consumer-to-consumer sale.
True
False
87. A consumer can be neither satisfied nor dissatisfied.

True
False
88. Functional performance relates to the physical functioning of the product.

True
False
89. If a customer is dissatisfied with a company's product, the company would prefer that he or she
complains to the company.
True
False
18-22
90. Affective performance can arise from only the symbolic dimension of product performance.
True
False
91. Firms need to satisfy consumer expectations by creating reasonable expectations through
promotional efforts and maintaining consistent quality so those expectations are fulfilled.
True
False
92. Repeat purchasers continue to buy the same brand because of their emotional attachment to it.
True
False
93. Committed customers are less likely to forgive a product or service failure.
True
False
94. Churn is a term used to refer to turnover in a firm's customer base.

True
False
95. For many products and services, there are wide variations in profitability across customers.
True
False
96. Many customer loyalty programs are designed to generate repeat purchases rather than
committed customers.
True
False
Essay Questions
18-23
97. Define the concept of postpurchase dissonance, and discuss the factors that influence the
probability and magnitude of a consumer experiencing it.
98. Bob and Stephanie purchased a new, 55-inch high-definition television, and they spent more than
$1,500. After they got it home, Stephanie started feeling anxious about this purchase and
wondered if they should have shopped a little more and become more informed about these types
of TVs and looked at a few more alternatives than just the ones they did before purchasing this
one. Stephanie is experiencing postpurchase dissonance. Explain what she can do to reduce it.
99. If a consumer decides to get rid of a product and/or its package, what are his or her options?
18-24
100 Explain how disposition decisions can affect a firm's marketing strategy.
.
101 Define relationship marketing, and list its five key elements.
.
102 Discuss the Net Promoter Score and its use by marketers to quantify and manage loyalty.
.
18-25
Chapter 18 Postpurchase Processes, Customer Satisfaction, and

Customer Commitment Answer Key
Multiple Choice Questions

1.
The increase in product valuation based on "mere" ownership is called
A.
B.
loyalty.
mere touch.
C.
the endowment effect.
D.
the IKEA effect.
E.
the compromise effect.
Researchers have dubbed the increased sense of value due to mere ownership as the
endowment effect.
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 18-01 Describe the various postpurchase processes engaged in by consumers
Topic: Postpurchase Processes, Customer Satisfaction, and Customer Commitment
2.
Which of the following is NOT a possible outcome once a consumer is satisfied?
A.
committed customer
B.
discontinued use
C.
repeat purchases
D.
increased use
E.
All of the above are possible outcomes.
The objective is to increase satisfaction, commitment, and retention of key customers.

Blooms: Remember
Difficulty: 3 Hard
Learning Objective: 18-01 Describe the various postpurchase processes engaged in by consumers
Topic: Postpurchase Processes, Customer Satisfaction, and Customer Commitment
18-26
3.
Doubt or anxiety regarding a purchase a consumer has made is known as _____.
A.
postpurchase worry
B.
postpurchase guilt
C.
D.
postpurchase shame
E.
postpurchase fear
This is a common consumer reaction after making a difficult, relatively permanent decision.

Blooms: Remember
Learning Objective: 18-02 Define and discuss postpurchase dissonance
Topic: Postpurchase Dissonance
4.
Which of the following is true regarding postpurchase dissonance?
A. All consumer purchase decisions are followed by postpurchase dissonance of some sort.
B. The importance of the decision to the consumer is one factor that influences the probability
and magnitude of postpurchase dissonance.
C. The individual's tendency to experience anxiety is not related to postpurchase dissonance.
D. The easier it is to alter the decision, the more likely postpurchase dissonance will be.
E. Nominal decision making usually results in the greatest magnitude of postpurchase
dissonance.
Dissonance is not common in high-involvement extended decision making where tradeoffs
among desirable attributes create conflict.

Blooms: Remember
18-27
5.
The probability of a consumer experiencing postpurchase dissonance, as well as the

magnitude of such dissonance, is a function of which of the following?
A.
the degree of commitment or irrevocability of the decision
B.
the importance of the decision to the consumer
C.
the difficulty of choosing among the alternatives
D.
the individual's tendency to experience anxiety
E.
all of the above
The probability and magnitude of such dissonance is a function of several factors.

Blooms: Remember
Difficulty: 1 Easy
6.
Connie just purchased her first new car, and she's actually feeling a little bad about it. She's
concerned about how much money she spent and how long she will be making car payments.
She's not sure she made the right choice, either. She liked another car a little better, but ended
up purchasing another model. Connie is experiencing _____.
A.
postpurchase worry
B.
postpurchase guilt
C.
D.
postpurchase shame
E.
postpurchase fear
Doubt or anxiety regarding a purchase a consumer has made is known as postpurchase
dissonance.

Blooms: Understand
18-28
7.
Which of the following is NOT an action a consumer may utilize to reduce dissonance?
A.
increase the desirability of the brand purchased
B.
decrease the desirability of rejected alternatives
C.
decrease the importance of the purchase decision
D.
reverse the purchase decision (return the product before use)
E. increase the importance of alternatives that were not considered in the purchase initially
After the purchase, consumer may use one or more approaches to reevaluate or alter the
decision to reduce dissonance based on alternatives considered.

Blooms: Remember
8.
Carla continued to search for information on cars even after she purchased one. She would go
over her decision in her head and pay attention to ads that featured the car she bought. She
was also noticing how many other people drove her model of car, which made her feel more
confident that she made a wise decision. Carla is attempting to reduce _____.
A.
consumption guilt
B.
C.
postpurchase shame
D.
postpurchase fear
E.
consumption anxiety
Doubt or anxiety regarding a purchase a consumer has made is known as postpurchase
dissonance.

Blooms: Understand
18-29
9.
Hailey purchased furniture for her living room and spent quite a bit of money. After she
purchased it, she started regretting that she spent so much, and she wasn't sure she liked the
furniture. To make herself feel better, she told herself that the other furniture she was
considering really wasn't that good and probably would not last as long as the furniture she
ended up purchasing. Which of the following is Hailey using to reduce her postpurchase
dissonance?
A.
increasing the desirability of the brand purchased
B.
decreasing the desirability of rejected alternatives
C.
decreasing the importance of the purchase decision
D.
reversing the purchase decision
E.
increasing the importance of the purchase decision
After the purchase, consumers may reevaluate the decision to reduce dissonance by
decreasing the desirability of rejected alternatives.

Blooms: Understand
10.
Negative emotions or guilt feelings aroused by the use of a product or a service are referred to
as _____.
A.
B.
consumption guilt
C.
consumption anxiety
D.
E.
A person driving a large car may experience some negative feelings due to environmental
concerns.

Blooms: Remember
18-30
11.
Rebecca is a single woman in her 40s. She sold her Honda Civic and bought an Acura CSX,
which is considerably more expensive. She was going to her brother's house with her mother,
and she asked her mother to drive in her car instead of Rebecca's new one. She didn't want
her brother to see that she had purchased an expensive car for herself. Rebecca was
experiencing _____.
A.
B.
consumption guilt
C.
consumption anxiety
D.
E.
Negative emotions or guilt feelings aroused by the use of a product or a service are referred to
as consumption guilt.

Blooms: Understand
12.
Using a product in a new way is referred to as _____.
A.
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
Marketers who discover new uses for their products can greatly expand sales.

Blooms: Remember
Learning Objective: 18-03 Discuss the issues surrounding product use and nonuse and their importance to marketers
Topic: Product Use
18-31
13.
The external ice cube chute on Cade's refrigerator door was not working properly. She could
hear the ice falling into the chute, but nothing would come out. She looked inside and realized
there was a solid block of ice clogging the chute, and she couldn't get it loose. Cade decided
to use a hair dryer to melt the ice, and it worked. Cade's using a hair dryer in a new way
represents _____.
A.
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
Use innovativeness refers to a consumer using a product in a new way.

Blooms: Understand
Topic: Product Use
14.
Using WD-40 as an additive to fish bait is an example of _______.
A.
counterfeit thinking
B.
prefactual thinking
C.
use innovativeness
D.
usage expansion
E.
Use innovativeness refers to a consumer using a product in a new way.

Blooms: Remember
Difficulty: 1 Easy
Topic: Product Use
18-32
15.
Why must manufacturers design products with both the primary purpose and other potential
uses in mind?
A.
B.
C.
D.
consumers demand it
competition requires it
to be able to promote secondary uses
stringent product liability laws
E.
to save on research and development costs
Stringent product liability laws and aggressive civil suits are forcing marketers to examine how
consumers use the products for the primary purpose and other potential uses.

Blooms: Remember
Difficulty: 3 Hard
Topic: Product Use
16.
Which of the following occurs when a consumer actively acquires a product that is not used or
used only sparingly relative to its potential use?
A.
consumption guilt
B.
nonconsumption guilt
C.
D.
product nonuse
E.
prefactual thinking
Nonuse can occur because the situation or the purchases changes between the purchase and
the potential usage situation.

Blooms: Remember
Difficulty: 1 Easy
Topic: Product Nonuse
18-33
17.
Disposition of the product or the product's container may occur _____ product use.
A.
during
B.
after
C.
D.
before
A and B
E.
A, B, and c
For products that are completely consumed, such as an ice cream cone, no disposition may be
involved.

Blooms: Remember
Learning Objective: 18-04 Summarize disposition options and their relevance to marketers and public policy
Topic: Disposition
18.
For which product is no disposition involved?
A.
ice cream cone
B.
laundry detergent
C.
D.
soft drink
clothing
E.
electronics
No disposition is involved for an ice cream cone because it is completely consumed.

Blooms: Remember
Topic: Disposition
18-34
19.
Carl and his family purchased a new home, and the builder left half-empty paint cans in the
garage. Carl doesn't know what to do with them because he cannot put them out in the regular
trash. Carl is concerned with which of the following with regard to the paint?
A.
purchase
B.
C.
D.
use
disposition
consumption
E.
product nonuse
Disposition of the product or the product's container may occur before, during, or after product
use.

Blooms: Understand
Topic: Disposition
20.
Exploding demand and short product life spans for high-tech gadgets such as cell phones,
personal computers, and various other personal electronic devices is creating growing
concerns over _____.
A.
e-waste
B.
poisonous waste
C.
hazardous waste
D.
reusable waste
E.
recyclable waste
Consumer and corporate solutions are necessary and evolving, although one recent estimate
is that only 1 in 4 computers is recycled.

Blooms: Remember
Topic: Disposition
18-35
21.
Which disposition alternative is the most widely used by consumers?
A.
trade in
B.
recycle
C.
D.
throw away
give away
E.
sell
There are many disposition alternatives, but "throw it away" is by far the most widely used by
consumers.

Blooms: Remember
Topic: Disposition
22.
Which of the following is NOT an alternative if a consumer decides to retain a product's

package?
A.
B.
store it
use it for original purpose
C.
recycle it
D.
use it for a new purpose
E.
All of the above are alternatives in this situation.
Recycling is an alternative if the consumer decides to get rid of the product's package.

Blooms: Remember
Difficulty: 3 Hard
Topic: Disposition
18-36
23.
Which of the following is an alternative once a consumer has decided to get rid of a product?
A.
sell it
B.
give it away
C.
loan it to someone
D.
throw it away
E.
all of the above
These are all alternatives once a consumer has decided to get rid of a product.

Blooms: Remember
Difficulty: 1 Easy
Topic: Disposition
24.
Which of the following is FALSE regarding the way in which disposition decisions can affect a
firm's marketing strategy?
A. For most durable goods, consumers are reluctant to purchase a new item until they have
"gotten their money's worth" from the old one.
B. Disposition sometimes must occur before acquisition of a replacement because of space or
financial limitations.
C. Frequent decisions by consumer to sell, trade, or give away used products results in a
large used-product market that can reduce the market for new products.
D. The United States is a completely throwaway society, and consumers are willing to
purchase new products without concern for waste.
E. Environmentally sound disposition decisions benefit society as a whole and thus the firms
that are part of that society.
Many Americans continue to be very concerned with waste and how their purchase decisions
affect waste.

Blooms: Remember
Topic: Product Disposition and Marketing Strategy
18-37
25.
Which type of sale occurs when one consumer sells a product directly to another with or
without the assistance of a commercial intermediary?
A.
B.
C.
personal sale
D.
private sale
E.
direct marketing
Garage sales, swap meets, flea markets, classified ads, and online outlets such as eBay exist
as a result of consumer demand to buy and sell used items.

Blooms: Remember
26.
Jon purchased an antique watch on eBay from another consumer. Which type of sale is this
known as?
A.
B.
C.
personal sale
D.
private sale
E.
electronically mediated sale
A consumer-to-consumer sale occurs when one consumer sells a product directly to another
with or without the assistance of a commercial intermediary.

Blooms: Understand
18-38
27.
An outlet or brand whose performance confirms a low-performance expectation generally will

result in _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
anger
A low-performance expectation generally will result in neither satisfaction nor dissatisfaction,
but rather with what can be termed nonsatisfaction.

Blooms: Remember
Learning Objective: 18-05 Explain the determinants and outcomes of satisfaction and dissatisfaction
Topic: The Evaluation Process
28.
Rod wasn't expecting much from the painters who came to his house. True to form, they did
not do a good job and confirmed his low-performance expectations. Rod is most likely
experiencing _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
anger

Blooms: Understand
18-39
29.
A brand whose perceived performance falls below expectations generally produces _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
fear
If the discrepancy between performance and expectation is sufficiently large, or if initial
expectations were low, the consumer may restart the entire decision process.

Blooms: Remember
30.
Kristen purchased a chair and ottoman from a national chain furniture store. After only six
months, the fabric started to fade and tear in some spots. While she didn't spend much money
on this chair, she did expect it to last longer than that. Kristen most likely experienced _____.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
guilt

Blooms: Understand
18-40
31.
When perceptions of product performance match expectations that are at or above the
minimum performance level, _____ generally results.
A.
satisfaction
B.
dissatisfaction
C.
nonsatisfaction
D.
elation
E.
surprise
Satisfaction reduces the level of decision making the next time the problem is recognized.

Blooms: Remember
32.
Jose and his family, all Mexican by birth, went to dine at a new Mexican restaurant in Houston,
which is home to many outstanding Mexican restaurants. They were expecting authentic
Mexican food, and they got it. They most likely experienced _____.
A.
B.
C.
D.
satisfaction
dissatisfaction
amazement
nonsatisfaction
E.
surprise
When perceptions of product performance match expectations that are at or above the
minimum performance level, satisfaction generally results.

Blooms: Understand
18-41
33.
Which of the following means that the consumer is enthusiastic about a particular brand and is
somewhat immune to actions by competitors?
A.
satisfaction
B.
commitment
C.
market maven
D.
brand leverage
E.
brand fanatic
Product performance that exceeds expected performance will generally result in satisfaction
and sometimes in commitment.

Blooms: Remember
34.
Pam and her friends ate at a new Italian restaurant, and the food, service, and ambiance
exceeded their expectations. They all decided that this was the only Italian restaurant they will
ever go to again in their town. This is an illustration of _____.
A.
B.
C.
D.
nonsatisfaction
extended decision making
commitment
E.
customer value
Commitment means that the consumer is enthusiastic about a particular brand and is
somewhat immune to actions by competitors.

Blooms: Understand
18-42
35.
Which of the following factors is the MOST likely reason consumers change providers of a
service?
A.
B.
C.
D.
pricing
E.
ethical problems
Core service failures include mistakes, billing errors, and service catastrophes that harm the
customer.

Blooms: Remember
Difficulty: 3 Hard
36.
Eric booked a hotel through hotels.com. However, when he arrived at the hotel, they had no
record of his reservation, and he was unable to get a room. He decided then that he would
never use this service again. Which reason for changing providers does this represent?
A.
B.
C.
D.
pricing
E.
ethical problems
Core service failures include mistakes, billing errors, and service catastrophes that harm the
customer.

Blooms: Understand
18-43
37.
Service employees who are uncaring, impolite, unresponsive, or unknowledgeable will cause
consumers to switch providers for which reason?
A.
B.
C.
D.
pricing
E.
ethical problems
Service encounter failure is one of the top reasons consumers switch providers.

Blooms: Remember
38.
Kimberly loves the ham and turkey from the Heavenly Ham store. There is only one store in
her town, though, and it is pretty far away. She goes that direction on Saturdays for her
daughter's music lesson, but by the time it's over and she's heading home, the store is already
closed. Sometimes, she brings a cooler and stops there before her daughter's lesson, but most
of the time she forgets to bring the cooler. She usually ends up buying lunch meat at the
grocery deli. Which reason for changing providers does this represent?
A.
B.
C.
pricing
D.
inconvenience
E.
ethical problems
Inconvenience includes location, hours of operation, and waiting time for service or
appointments.

Blooms: Understand
18-44
39.
Simon was dissatisfied with the meal and service he received at a restaurant, so he
complained. The manager came out and was arrogant to Simon, and Simon felt like he was
trying to blame him for the bad experience he had by saying he was too picky. Simon vowed
never to eat at that restaurant again. Which reason for changing providers does this
represent?
A.
B.
C.
pricing
D.
E.
ethical problems
Responses to service failures include reluctant responses, failure to respond, and negative
responses.

Blooms: Understand
40.
Renee has been going to the same dentist for years. However, her employer changed her
dental insurance plan, and her dentist was not part of the plan. She had to switch to an
approved dentist. Which reason for changing providers does this represent?
A.
B.
C.
pricing
D.
E.
ethical problems
Involuntary switching means the service provider or customer moves, or a third-party payer
such as an insurance company requires change.

Blooms: Understand
18-45
41.
Failure on a given product or service characteristic often has a stronger effect on consumers
than success on that same characteristic. This is known as ______.
A.
technology bias
B.
service design flaw
C.
customer failure
D.
negativity bias
E.
financial failure
The marketer should first meet expectations across all relevant features before maximizing
performance on a few.

Blooms: Remember
Difficulty: 3 Hard
42.
What are the two dimensions of performance for products?
A.
instrumental and symbolic
B.
latent and manifest
C.
immediate and delayed
D.
direct and indirect
E.
consummatory and instrumental
Instrumental relates to the physical functioning of the product; symbolic relates to aesthetic or
image-enhancement performance.

Blooms: Remember
18-46
43.
Which dimension of product performance relates to the physical functioning of the product?
A.
affective
B.
direct
C.
instrumental
D.
attributional
E.
consummatory
Instrumental refers to the physical functioning of the product, such as durability.

Blooms: Remember
44.
Leon is concerned with the reliability and durability of laptop computers he is considering
purchasing. This represents which dimension of product performance?
A.
affective
B.
C.
D.
direct
instrumental
symbolic
E.
consummatory
Instrumental refers to the physical functioning of the product, such as durability.

Blooms: Understand
18-47
45.
Which dimension of product performance relates to aesthetic or image-enhancement

performance?
A.
affective
B.
C.
D.
direct
instrumental
symbolic
E.
consummatory
Symbolic refers to aesthetic or image-enhancement performance, such as styling.

Blooms: Remember
46.
Monique is buying a new coat for the winter. While she is concerned with how well the coat will
keep her warm, she is also concerned with how stylish it will make her look. Her concern for
stylishness represents which dimension of product performance?
A.
affective
B.
C.
D.
direct
instrumental
symbolic
E.
consummatory
Symbolic refers to aesthetic or image-enhancement performance, such as styling.

Blooms: Understand
18-48
47.
The emotional response that owning or using the product or outlet provides is known as
_____.
A.
B.
direct performance
C.
D.
E.
Affective performance may arise from the instrumental or symbolic performance or from the
product itself.

Blooms: Remember
48.
Dawn and her two daughters went to see Pride & Prejudice at the movie theater. They all loved
the movie and came out saying, "We're so glad she married Mr. Darcy!" This movie provided
them with _____.
A.
B.
direct performance
C.
D.
E.
The emotional response that owning or using the product or outlet provides is known as
affective performance.

Blooms: Understand
18-49
49.
What is the first decision a dissatisfied customer will make?
A.
B.
C.
D.
E.
The first decision to be made is whether or not to take action.

Blooms: Remember
Topic: Dissatisfaction Responses
50.
Ronald is dissatisfied with a product he has bought. What is the first decision Ronald will make
with regard to his dissatisfying situation?
A.
B.
C.
D.
E.
The first decision to be made is whether or not to take action.

Blooms: Understand
18-50
51.
A consumer's decision of whether or not to take action when he or she is dissatisfied is a

function of which of the following?
A.
B.
C.
D.
importance of the purchase to the consumer

ease of taking action
consumer's existing level of overall satisfaction with the brand or outlet
characteristics of the consumer involved
E.
all of the above
By taking no action, the consumer decides to live with the unsatisfactory situation.

Blooms: Remember
Difficulty: 1 Easy
52.
Even if a dissatisfied consumer takes no external action, which of the following is likely?
A.
B.
C.
D.
will engage in negative work-of-mouth

will stop buying that brand
will have a less favorable attitude toward the store or brand
will stop buying at that store
E.
all of the above
If a dissatisfied consumer decides to take no external action, she will have a less favorable
attitude toward the store or brand.

Blooms: Remember
18-51
53.
Which of the following is TRUE regarding word-of-mouth (WOM)?
A.
WOM is a minor factor in consumer behavior.
B.
Consumers trust WOM more than many other sources.
C.
Satisfaction yields more WOM than does dissatisfaction.
D.
Consumers do not give WOM much merit, especially negative WOM.
E.
Marketers are not concerned about WOM.
Consumers tend to rely on WOM heavily when making decisions.

Blooms: Remember
54.
Employees who deal directly with consumers are known as _____.
A.
foot soldiers
B.
clerks
C.
consumer-level employees
D.
frontline employees
E.
primary employees
Frontline employees should be trained and empowered to resolve problems as they arise.

Blooms: Remember
Topic: Marketing Strategy and Dissatisfied Consumers
18-52
55.
Savannah works at the front desk at a Marriott Hotel. If a guest has a complaint, she is
empowered to make amends up to a certain amount without her supervisor's approval.
Savannah is known as a _____.
A.
decision maker
B.
key employee
C.
consumer-level employee
D.
frontline employee
E.
primary employee
Employees who deal directly with consumers are known as frontline employees.

Blooms: Understand
56.
Factors such as information quality, navigation, price, merchandise availability, purchase

process, and order tracking are part of which dimension in online satisfaction and
dissatisfaction?
A.
B.

C.
customer service
D.
E.
all of the above
Website design is an important driver of satisfaction with online retailers.

Blooms: Remember
18-53
57.
Factors such as timely delivery, order accuracy, billing accuracy, and merchandise quality are
part of which dimension in online satisfaction and dissatisfaction?
A.
B.

C.
customer service
D.
E.
all of the above
Fulfillment and reliability are important drivers of satisfaction with online retailers.

Blooms: Remember
58.
Customer complaints communicated directly to the company and no one else are important
because _____.
A.
B.
C.
D.
they can alert the firm to problems

enable problems to be solve
neutralize negative WOM
enable dissatisfied customers to be more satisfied
E.
all of the above
When a consumer is dissatisfied, the most favorable consequence is for the person to
communicate this to the firm and no one else.

Blooms: Remember
Difficulty: 1 Easy
18-54
59.
Which of the following is TRUE regarding the Net Promoter Score (NPS)?
A.
It works well in all industries.
B.
It asks WOM questions.
C.
D.
It calculates satisfaction scores.

It is difficult to use.
E.
All of the above are true.
NPS is an indirect measure based on WOM questions.

Blooms: Remember
Learning Objective: 18-06 Describe the relationship between satisfaction; repeat purchase; and customer commitment
Topic: Customer Satisfaction, Repeat Purchases, and Customer Commitment
60.
_____ continue to buy the same brand though they do not have an emotional attachment to it.
A.
B.
C.
D.
Repeat purchasers
Brand loyals
Committed customers
Satisfied buyers
E.
Referred buyers
Repeat purchasers may do so out of habit or because they don't see viable options to their
current choice.

Blooms: Remember
18-55
61.
Kevin buys the same brand of clothing all the time. He continues to buy it because it fits him
well and the price is right, but he does not have an emotional attachment to it. Kevin is an
example of a(n) _____.
A.
trapped purchaser
B.
committed customer
C.
repeat purchaser
D.
nonsatisfied customer
E.
indifferent purchaser
Repeat purchasers may do so out of habit or because they don't see viable options to their
current choice.

Blooms: Understand
Difficulty: 3 Hard
62.
The costs of finding, evaluating, and adopting another solution are known as _____.
A.
incurred costs
B.
switching costs
C.
D.
effort costs
balancing costs
E.
committed costs
Some dissatisfied customers may become or remain repeat purchasers if they perceive
switching costs to be too high.

Blooms: Remember
18-56
63.
Sandy uses online banking, and her bank charges her $4.99 per month. However, she has
seen ads for a competing bank offering free online banking services. She'd like to switch, but
she realized that it might be difficult to do because she has several of her bill payments set up
as automatic debits. The cost of changing to another bank represents Sandy's _____.
A.
incurred costs
B.
switching costs
C.
D.
effort costs
balancing costs
E.
committed costs
The costs of finding, evaluating, and adopting another solution are known as switching costs.

Blooms: Understand
64.
Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting
_____.
A.
brand loyalty
B.
brand leverage
C.
brand image
D.
brand equity
E.
brand bias
When customers are committed to a brand it is known as brand loyalty.

Blooms: Remember
Difficulty: 1 Easy
18-57
65.
Joyce will only drink Pepsi, and she feels an emotional attachment to it. That is the brand she
was brought up on and is the one she continues to drink every day. Joyce is exhibiting _____.
A.
brand loyalty
B.
brand leverage
C.
brand image
D.
brand equity
E.
brand bias
Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting
brand loyalty.

Blooms: Understand
Difficulty: 1 Easy
66.
Which type of customer has an emotional attachment to the brand or firm?
A.
repeat purchaser
B.
satisfied buyer
C.
total buyer
D.
committed customer
E.
affective customer
A committed customer has an emotional attachment to the brand or firm, something like
friendship.

Blooms: Remember
18-58
67.
George has used the same company for his car and home insurance for more than 20 years.
Any claim he has made has been handled fairly and quickly. A major hurricane came through
his area causing many individuals, including George, and business owners to lose everything.
While he was hearing about so many insurance claim nightmares, he knew his company would
come through because he trusts this company. George is an example of a(n) _____.
A.
repeat purchaser
B.
satisfied buyer
C.
total buyer
D.
committed customer
E.
affective customer
A committed customer has an emotional attachment to the brand or firm, something like
friendship.

Blooms: Understand
68.
Which of the following is FALSE regarding committed customers?
A.
B.
C.
D.
They are unlikely to consider additional information when making a purchase.

They are resistant to competitors' marketing efforts.
They are less likely to forgive an occasional product or service failure.
They are likely to be a source of positive word-of-mouth.
E. They are more profitable to the firm than mere repeat purchasers.
Committed customers are more likely to forgive an occasional product or service failure.

Blooms: Remember
18-59
69.
The term used to refer to turnover in a firm's customer base is _____.
A.
turnover
churn
B.
C.
D.
attrition rate
turn ratio
E.
defection rate
Reducing churn is a major objective of many firms today because it costs more to obtain a new
customer than to retain an existing one.

Blooms: Remember
Topic: Repeat Purchasers, Committed Customers, and Profits
70.
Expenses associated with advertising, establishing a new account, and mailing catalogs are
examples of _____.
A.
churn
B.
opportunity costs
C.
switching costs
D.
contribution costs
E.
acquisition costs
It costs more to obtain a new customer than to retain an existing one.

Blooms: Remember
18-60
71.
Which of the following is a source of increased customer profitability over time?
A.
B.
C.
D.

lower costs
referrals
price premium
E.
all of the above
Increased sales volume, lower costs, referrals, and price premium are all sources of increased
customer profitability over time.

Blooms: Remember
Difficulty: 1 Easy
72.
Which of the following is NOT a source of increased customer profitability over time?
A.
B.
C.
D.

lower costs
referrals
increased churn
E.
price premium
Churn is a source of decreased customer profitability over time.

Blooms: Remember
18-61
73.
_____ refers to the fact that repeat and particularly committed customers tend to buy the brand
consistently rather than waiting for a sale or continually negotiating price.
A.
B.
Acquisition cost
Referral
C.
Price premium
D.
Price indifferent
E.
Price insensitive
Price premium customers are a source of increased customer profitability over time.

Blooms: Remember
Difficulty: 3 Hard
74.
For which type of firm has research shown that reducing the number of customers who leave
by 5 percent resulted in the highest percentage increase in average profits per customer?
A.
auto services
B.
branch banks
C.
insurance brokerage
D.
industrial laundry
E.
credit insurance
Research shows that for branch banks (compared to other industries) the link between
reduced churn and profits is the highest.

Blooms: Remember
Difficulty: 3 Hard
18-62
75.
Marketing efforts focused on a firm's current customers are generally termed _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.
Relationship marketing is an attempt to develop an ongoing, expanding exchange relationship
with a firm's customers.

Blooms: Remember
Topic: Repeat Purchasers, Committed Customers, and Marketing Strategy
76.
An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is

called _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.

Blooms: Remember
18-63
77.
Marriott Rewards customers earn points whenever they stay at any Marriott property. Louis is
in this program, and he travels quite a bit because he works in sales. He usually stays at a
Courtyard by Marriott, and when he walks into the lobby, there is a sign by the desk welcoming
him by name as well as other Marriott Rewards customers who might be staying there. This
ongoing relationship between Louis and Marriott is an example of _____.
A.
B.
internal marketing
C.
personal marketing
D.
formal marketing
E.

Blooms: Understand
78.
Which of the following is a key element of relationship marketing?
A.
B.
C.
D.
customizing the relationship to the individual customer

marketing to employees so that they will perform well for customers
E.
all of the above
These elements make it clear that relationship marketing is centered on understanding
consumer needs at the individual consumer level.

Blooms: Remember
Difficulty: 1 Easy
18-64
79.
Which of the following is NOT a key element of relationship marketing?
A. developing a core service or product around which to build a customer relationship

B.
C.
D.

marketing to employees so that they will perform well for customers
E.
standardizing the relationship across customers
Relationship marketing customizes the relationship to the individual customer.

Blooms: Remember
80.
Every time Hannah buys a sandwich at Super Subs, she gets a stamp on a card. Once she
has 10 stamps, she'll get a free sandwich. This is an example of a(n) _____.
A.
food stamp program
B.
acquisition program
C.
customer loyalty program
D.
tie-in program
E.
overlay program
Customer loyalty programs are designed to generate repeat purchases.

Blooms: Understand
Difficulty: 1 Easy
True / False Questions
18-65
81.
Nominal and most limited decision making will not produce postpurchase dissonance.
TRUE
Dissonance does not generally occur for low-involvement nominal and limited decision making.

Blooms: Remember
82.
Consumers might experience guilt by the use of a product or a service.

TRUE
Consumption guilt occurs when negative emotions or guilt feelings are aroused by the use of a
product or a service.

Blooms: Remember
Difficulty: 1 Easy
83.
Most consumer purchases involve relatively high-involvement decision making, and therefore,
arouse little or no postpurchase dissonance.
FALSE
Most consumer purchases involve nominal or limited decision making.

Blooms: Remember
Topic: Product Use
84.
Sometimes, consumers purchase products and do not use them.

TRUE
Nonuse can occur because the situation or the purchaser changes between the purchase and
the potential usage situation.

18-66
Blooms: Remember
Difficulty: 1 Easy
Topic: Product Nonuse
85.
Disposition of the product or the product's container may occur before, during, or after product
use.
TRUE
For products that are completely consumed, such as an ice cream cone, no disposition may be
involved.

Blooms: Remember
Topic: Disposition
86.
A consumer selling something to another individual through an online intermediary (i.e., eBay)
is known as a consumer-to-consumer sale.
TRUE
Garage sales, swap meets, flea markets, classified ads, and online outlets such as eBay exist
as a result of consumer demand to buy and sell used items.

Blooms: Remember
87.
A consumer can be neither satisfied nor dissatisfied.

TRUE
The consumer is not likely to feel disappointment or engage in complaint behavior.

Blooms: Remember
Difficulty: 3 Hard
18-67
88.
Functional performance relates to the physical functioning of the product.

FALSE
Instrumental performance relates to the physical functioning of the product.

Blooms: Remember
89.
If a customer is dissatisfied with a company's product, the company would prefer that he or
she complains to the company.
TRUE
This gives the company a chance to resolve the problem.

Blooms: Remember
Difficulty: 3 Hard
90.
Affective performance can arise from only the symbolic dimension of product performance.
FALSE
Affective performance is the emotional response that owning or using the product or outlet
provides.

Blooms: Remember
91.
Firms need to satisfy consumer expectations by creating reasonable expectations through

promotional efforts and maintaining consistent quality so those expectations are fulfilled.
TRUE
Because dissatisfied customers tend to engage in negative WOM, one dissatisfied customer
can cause a ripple or multiplier effect in terms of discouraging future sales.

18-68

Blooms: Remember
92.
Repeat purchasers continue to buy the same brand because of their emotional attachment to
it.
FALSE
They may do so out of habit or because they don't see viable options to their current choice.

Blooms: Remember
93.
Committed customers are less likely to forgive a product or service failure.

FALSE
Committed customers have an emotional attachment to the brand or firm and are more likely to
forgive a product or service failure.

Blooms: Remember
94.
Churn is a term used to refer to turnover in a firm's customer base.

TRUE
Reducing churn can have a major impact on profit even if the retained customers are primarily
repeat purchasers.

Blooms: Remember
18-69
95.
For many products and services, there are wide variations in profitability across customers.
TRUE
Retaining some customers is more profitable than others.

Blooms: Remember
Difficulty: 1 Easy
96.
Many customer loyalty programs are designed to generate repeat purchases rather than
committed customers.
TRUE
An example of a loyalty program designed to generate repeat purchases is Marriott Rewards
where members earn points for staying at Marriott hotels.

Blooms: Remember
Essay Questions
18-70
97.
Define the concept of postpurchase dissonance, and discuss the factors that influence the
probability and magnitude of a consumer experiencing it.
Postpurchase dissonance is doubt or anxiety after making a purchase. The probability of a

consumer experiencing it, as well as the magnitude of it, is a function of:
a. The degree of commitment or irrevocability of the decision. The easier it is to alter the
decision, the less likely the consumer is to experience dissonance.
b. The importance of the decision to the consumer. The more important the decision, the
more likely dissonance will result.
c. The difficulty of choosing among the alternatives. The more difficult it is to select from
among the alternatives, the more likely the experience and magnitude of dissonance. Decision
difficulty is a function of the number of alternatives considered, the number of relevant
attributes associated with each alternative, and the extent to which each alternative offers
attributes not available with the other alternatives.
d. The individual's tendency to experience anxiety. Some individuals have a higher
tendency to experience anxiety than do others. The higher this tendency, the more likely the
individual will experience postpurchase dissonance.

Blooms: Understand
98.
Bob and Stephanie purchased a new, 55-inch high-definition television, and they spent more
than $1,500. After they got it home, Stephanie started feeling anxious about this purchase and
wondered if they should have shopped a little more and become more informed about these
types of TVs and looked at a few more alternatives than just the ones they did before
purchasing this one. Stephanie is experiencing postpurchase dissonance. Explain what she
can do to reduce it.
After the purchase is made, the consumer may utilize one or more of the following approaches
to reduce dissonance:
a. Increase the desirability of the brand purchased.
b. Decrease the desirability of rejected alternatives.
c. Decrease the importance of the decision.
d. Reverse the purchase decision (return the product before use).

18-71
Blooms: Understand
99.
If a consumer decides to get rid of a product and/or its package, what are his or her options?
Once a consumer has decided to get rid of a product and/or its package, he or she has several
choices:
a. Recycle it.
b. Throw it away as garbage or as litter.
c. Trade it in.
d. Sell it to an end user, a middleman, or through a middleman.
e. Give it away to be used or to be sold.
f. Lend it to someone.

Blooms: Understand
Topic: Disposition
100.
Explain how disposition decisions can affect a firm's marketing strategy.
There are five major ways in which disposition decisions can affect a firm's marketing strategy.
First, for most durable goods, consumers are reluctant to purchase a new item until they have
"gotten their money's worth" from the old one. Allowing old items to be traded in is one way to
overcome this reluctance. Second, disposition sometimes must occur before acquisition of a
replacement because of space or financial limitations. Thus, it is to the manufacturer's and
retailer's advantage to assist the consumer in the disposition process. Third, frequent
decisions by consumers to sell, trade, or give away used products may result in a large usedproduct market that can reduce the market for new products. A fourth reason for concern with
product disposition is that the United States is not completely a throwaway society. Thus,
manufacturers and retailers could take steps to ensure that products are reused. Finally,
environmentally sound disposition decisions benefit society as a whole and thus, the firms that
are part of that society.

Blooms: Understand
18-72
101.
Define relationship marketing, and list its five key elements.
Relationship marketing is an attempt to develop an ongoing, expanding exchange

relationship with a firm's customers and has five key elements:
a. Developing a core service or product around which to build a customer relationship.
b. Customizing the relationship to the individual customer.
c. Augmenting the core service or product with extra benefits.
d. Pricing in a manner to encourage loyalty.
e. Marketing to employees so that they will perform well for customers.

Blooms: Understand
18-73
102.
Discuss the Net Promoter Score and its use by marketers to quantify and manage loyalty.
The Net Promoter Score (NPS) is an indirect measure based on word of mouth (WOM). The
technique is based on the following question: "How likely is it that you would recommend
(company X) to a friend or colleague?"
Three categories of consumers are created based on their answers to this question as follows:
Promotersscore 9 or 10
Passively Satisfiedscore 7 or 8
Detractorsscore 0 to 6
NPS is then calculated by subtracting the proportion of a firm's customers who are detractors
from the proportion who are promoters.
Several points about NPS are worth noting:
Higher NPS scores in many industries are strongly related to positive firm growth.
NPS, although based on a WOM question, appears to tap into attitudinal loyalty because
recommending to a friend or colleague involves social risk and requires proactive behavior on
the part of the firm.
NPS is very simple compared to many satisfaction and loyalty questionnaires that can involve
dozens of questions.
NPS is not perfect (doesn't work well in all industries) and is not the only measure out there
(other measures are highly correlated with a firm's financial performance). Therefore,
companies who use NPS often recommend supplementing the "recommend" question with
questions that get at underlying reasons for the score.

Blooms: Understand
18-74

TBChap 018

Uploaded by

Copyright:

Available Formats

TBChap 018

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TBChap 018

Uploaded by

Copyright:

Available Formats

Chapter 18

Postpurchase Processes, Customer Satisfaction, and Customer

Multiple Choice Questions

the endowment effect.

the IKEA effect.

the compromise effect.

2. Which of the following is NOT a possible outcome once a consumer is satisfied?

All of the above are possible outcomes.

3. Doubt or anxiety regarding a purchase a consumer has made is known as _____.

4. Which of the following is true regarding postpurchase dissonance?

the degree of commitment or irrevocability of the decision

the importance of the decision to the consumer

the difficulty of choosing among the alternatives

the individual's tendency to experience anxiety

all of the above

increase the desirability of the brand purchased

decrease the desirability of rejected alternatives

decrease the importance of the purchase decision

reverse the purchase decision (return the product before use)

increasing the desirability of the brand purchased

decreasing the desirability of rejected alternatives

decreasing the importance of the purchase decision

reversing the purchase decision

12. Using a product in a new way is referred to as _____.

extended use thinking

extended use thinking

14. Using WD-40 as an additive to fish bait is an example of _______.

extended use thinking

18. For which product is no disposition involved?

ice cream cone

21. Which disposition alternative is the most widely used by consumers?

electronically mediated sale

core service failure

service encounter failure

core service failure

service encounter failure

core service failure

service encounter failure

service design flaw

42. What are the two dimensions of performance for products?

instrumental and symbolic

latent and manifest

immediate and delayed

direct and indirect

consummatory and instrumental

45. Which dimension of product performance relates to aesthetic or image-enhancement

49. What is the first decision a dissatisfied customer will make?

whether to complain to the store or to the manufacturer

whether or not to stop buying that brand

whether or not to take any external action

whether or not to initiate legal action

whether to complain to the store or to the manufacturer

whether or not to stop buying that brand

whether or not to take any external action

whether or not to initiate legal action

importance of the purchase to the consumer

C. consumer's existing level of overall satisfaction with the brand or outlet

characteristics of the consumer involved

will engage in negative work-of-mouth