Short Essay

What is the link between customer satisfaction and company profitability? How does customer retention and customer loyalty fit into this relationship? Why is customer satisfaction a core marketing concept?

Marketing costs

1. Identify 10 specific marketing activities that incur costs. Five of these marketing activities should be fixed costs, and five should be variable costs. Explain the difference between fixed and variable costs in marketing.

2. When setting a price, which is more important: unit cost or variable cost? Explain.

3. Are marketing costs programmed or committed costs?

4. What is the sunk cost fallacy, and what type of cost does it refer to