ITPEC FE Morning April 2020 Question 69

Heskett classified customers into four categories and explained the importance of improving customer satisfaction. Which of the following types of customers is dissatisfied and, if given a chance, would encourage others to switch as well?

Explanation

Terrorist — the dissatisfied customer who leaves and, given the chance, persuades others to leave too.

Heskett's classification crosses satisfaction with loyalty:

  • •Propagandist (apostle): satisfied and loyal, recommends the company to others
  • •Mercenary: satisfied but not loyal, switches for a better price or offer
  • •Captive (hostage): dissatisfied but stays because there is no alternative or switching costs too much
  • •Terrorist: dissatisfied and not loyal, spreads bad word of mouth

The question describes low satisfaction plus active influence on others to switch, which is the terrorist.

Answer (d)

Why not others:

  • •(a) Captive — also dissatisfied, but stays locked in and is not described as pulling others away
  • •(b) Mercenary — satisfied; leaves for a better deal, not out of discontent
  • •(c) Propagandist — the opposite case: satisfied and loyal, spreads good word of mouth

Key rule: Satisfaction alone does not guarantee loyalty; improving satisfaction turns terrorists and captives into loyal customers and propagandists who bring in others.

Business Strategy Management · AI-written, may contain errors

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