Marketing MCQ Questions and Solutions with Explanations | Management

Life cycle cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value. Life-cycle costing is a method of calculating the total cost of ownership over the life span of the industrial product. It can be especially useful in the marketing of industrial products that sell for high initial prices, but which provide long-run cost savings.

Successful service companies focus their attention on both their customers and their employees. They understand service-profit chains, which links service firm profits with employee and customer satisfaction. The service profit chain dissects the levers that translate good service into profitability.

If a firm is practicing Internal marketing, the firm is training and effectively motivating its customer-contact employees and all of the supporting service people to work as a team to provide customer satisfaction. Internal marketing is the promotion of a company's objectives, products and services to employees within the organization. The purpose is to increase employee engagement with the company's goals and fostering brand advocacy.

According to Parasuraman, Zeithaml & Berry, the most important determinant of service quality is reliability. Reliability is defined as the probability that a product, system, or service will perform its intended function adequately for a specified period of time, or will operate in a defined environment without failure.

The extended marketing mix for services includes: People, Processes and Physical Evidence. The physical evidence within the service marketing mix refers to an environment in which a service comes about from an interaction between an employee and a customer which is combined with a tangible commodity.

Employee Training is not an element of physical evidence. Physical evidence is the material part of a service.

Flow of activities is not an element of people. Marketing is the performance of business' activities that direct the flow of goods and services from producer to consumer or user in order to satisfy customers and accomplish the company's objectives.

Standardized and customized flow of activities, simple and complex number of steps and customer involvement by which a service is delivered is called Process mix. Process refers to the flow of activities or mechanism that take place when there is in an interaction between the customers and the businesses.

Physical evidence is the environment in which the service is delivered and where the firm and customer interact and any tangible components that facilitates performance or communication of the service.

People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the individual needs of the person consuming it.