Marketing Issues Such as Advertising, Image, and Promotion Are Important

question 33

Multiple Choice

Marketing issues such as advertising, image, and promotion are important to quality because:

• A) they define for consumers the tangible elements of a service.
• B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer.
• C) they educate consumers on how to use the product.
• D) they make the product seem more valuable than it really is.
• E) they raise expenses and therefore decrease profitability.

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding taxes and interest.

Price Hike

An increase in the price of goods or services, which can be due to various factors including increased production costs or higher demand.

Net Operating Income

A measure of a company’s profitability, calculated as revenues less operating expenses excluding taxes and interest.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific segment of the business and would be eliminated if the segment ceased operations.