Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In the extended marketing mix, which of the following is included as an additional element for services?

1. Process

2. Price

3. Promotion

4. People

The correct answer is: Process

The extended marketing mix for services includes several additional elements beyond the traditional four (Product, Price, Place, and Promotion), specifically tailored to address the unique characteristics of services. One of these critical elements is the concept of Process. In the context of services, the Process refers to the method and sequence of activities through which a service is provided. This could involve the steps taken in delivering the service to the customer, including interactions, systems, and procedures that ensure service quality and customer satisfaction. For instance, in a hotel, the check-in and check-out processes, customer service interactions, and the overall delivery of services contribute significantly to the customer experience. Including Process in the marketing mix highlights the importance of managing the operational side of service delivery, which is essential for maintaining quality and efficiency. This focus on Process helps organizations improve customer engagement, satisfaction, and loyalty by ensuring that the service delivery aligns with customer expectations and enhances the overall experience. While Price, Promotion, and People are all vital components of the service marketing mix, they are not additional elements specific to services as the Process is. Price pertains to the costing strategy, Promotion involves the communication and advertising methods, and People refers to the staff who deliver the service. However, they do not provide