Consumer Satisfaction

question 101

Multiple Choice

Consumer satisfaction

• A)is a highly reliable standard for evaluating macro-marketing effectiveness.
• B)is easy to measure because it is a highly personal concept.
• C)is the objective of all macro-marketing systems.
• D)depends on consumers' level of expectation.
• E)None of these answers is correct.

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Definitions:

Contribution Margin

The difference between the sales revenue generated from a product or service and the variable costs associated with its production and sales.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and excludes fixed manufacturing overhead.

Absorption Costing

A costing method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Net Income

The net income a business realizes once it has subtracted all outgoings and fiscal charges from its revenue.