Research 2 - Marvel Education

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Practice Listening: Highlight Correct Summary ID: #30169 Medium Research 2

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Transcript:

Wharton Marketing Professor Stephen Hoch, who suffered through this scenario first-hand during a recent shopping trip, says customers are bound to talk about these kinds of experiences. And, according to new Wharton research, such word-of-mouth communication should be a big cause of concern to retailers. Results of The Retail Customer Dissatisfaction Study 2006-conducted by The Jay H. Baker Retailing Initiative at Wharton and The Verde Group, a Toronto consulting firm, in the weeks before and after Christmas 2005 - show that only 6% of shoppers who experienced a problem with a retailer contacted the company, but 31% went on to tell friends, family or colleagues what happened. Of those, 8% told one person, another 8% told two people, but 6% told six or more people. "Even though these shoppers don't share their pain with the store, they do share their pain with other people. Apparently, quite a few other people” says Hoch. Overall, if 100 people have a bad experience, a retailer stands to lose between 32 and 36 current or potential customers, according to the study. The complaints have an even greater impact on shoppers who were not directly involved as the story spreads and is embellished, researchers found. Almost half of those surveyed, 48%, reported they have avoided a store in the past because of someone else's negative experience.

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Recent research shows that when customers are dissatisfied with service or products, they usually inform the company of their complaint. They tend to talk about their negative experience with others if the company doesn't respond to their initial complaint. Recent research shows that nearly one third of dissatisfied customers will share a negative retail experience with someone else. Nearly half of the people surveyed said that they had avoided a store due to another individual's negative experience. Recent research shows that nearly 80% of customers who had a bad experience with a company will share that experience with people they know. Furthermore, 70% of people who hear about another individual's negative experience will avoid a store based on what they've heard. Recent research shows that most customers have had a negative experience with a company at some time. When this happens, the majority tend to avoid the store in future. More seriously for the companies, however, between 32 and 36 out of every hundred customers will tell others about that experience, and exaggerate the story.

Result:

A.I. Explanation:

Option 1: "Recent research shows that when customers are dissatisfied with service or products, they usually inform the company of their complaint. They tend to talk about their negative experience with others if the company doesn't respond to their initial complaint."
Explanation: This option incorrectly states that customers usually inform the company of their complaints. The text indicates that only 6% of dissatisfied customers contact the retailer, while a significant 31% share their negative experiences with others. Therefore, the claim that they usually inform the company is misleading.
Option 2: "Recent research shows that nearly one third of dissatisfied customers will share a negative retail experience with someone else. Nearly half of the people surveyed said that they had avoided a store due to another individual's negative experience."
Explanation: This option accurately summarizes the main points of the text. It states that 31% of dissatisfied customers share their experiences, which aligns with the text's findings. Additionally, it correctly mentions that 48% of surveyed individuals avoided a store due to someone else's negative experience, reflecting the text's emphasis on the impact of word-of-mouth communication.
Option 3: "Recent research shows that nearly 80% of customers who had a bad experience with a company will share that experience with people they know. Furthermore, 70% of people who hear about another individual's negative experience will avoid a store based on what they've heard."
Explanation: This option exaggerates the statistics presented in the text. The text states that only 31% of dissatisfied customers share their experiences, not 80%. Additionally, it does not provide any evidence for the claim that 70% of people will avoid a store based on what they've heard, making this option factually incorrect.
Option 4: "Recent research shows that most customers have had a negative experience with a company at some time. When this happens, the majority tend to avoid the store in future. More seriously for the companies, however, between 32 and 36 out of every hundred customers will tell others about that experience, and exaggerate the story."
Explanation: This option misrepresents the findings of the text. It suggests that most customers have had negative experiences, which is not supported by the text. Furthermore, while it mentions that 32 to 36 customers may tell others about their experience, it fails to accurately capture the specific statistics and context provided in the text regarding the sharing of experiences and the impact on customer behavior.

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