Booms and Bitner Suggest Three Additional Elements in Marketing Strategy

question 26

Essay

Booms and Bitner suggest three additional elements in marketing strategy for services.Discuss the three elements as they apply to a bank or a university.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced.

Total Variable Cost

The sum of expenses that vary directly with the level of production or sales volume.

Variable Costs

Costs that change in proportion to the level of activity or volume of production.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance payments.