CH21: Socially Responsible Marketing

Question 1

triple bottom line

Answer 1

the concept that a company has a responsibility to people (social component), planet (sustainability component), and profit (monetary component)

Question 2

the 5 components of corporate responsibility in the workplace

Answer 2

• fair compensation
• work-life balance
• diversity that is promoted
• safe and healthful working environment
• employee development

Question 3

the 3 things enhanced by corporate giving

Answer 3

• company image
• customer loyalty
• perceived product performance

Question 4

the main dilemma of corporate philanthropy

Answer 4

good deeds can be overlooked if the company is seen as exploitative or fails to live up to its positive image

Question 5

bottom of the pyramid

Answer 5

socioeconomic concept used to refer to the largest but poorest group of the world’s population, who live on less than $2.50 a day

Question 6

reverse innovation

Answer 6

the use of a successful product in a developing market as the base for an inexpensive alternative in developed markets

Question 7

cause marketing

Answer 7

the linking of a firm’s contributions to a designated cause with its customers’ revenue-producing transactions (e.g. donating a percentage of profits)

Question 8

benefits of successful cause marketing

Answer 8

• improved social welfare
• differentiated brand positioning
• strong customer bonds
• enhanced company image
• reservoir of goodwill
• boosted internal morale
• increased sales and market value

Question 9

what can make cause marketing backfire?

Answer 9

• questionable link between product and cause
• firm is seen as self-serving and exploitative
• company is not seen as consistent
• company is only occasionally engaged

Question 10

social marketing

Answer 10

marketing done by a nonprofit or government organization to further a cause, such as “say no to drugs”

Question 11

main goal for social marketing

Answer 11

influencing behavioral change for social good by using a systematic marketing planning process that involves some well-defined audience segment

Question 12

the main components of a social marketing campaign

Answer 12

• clearly defined goal
• well-articulated strategy
• meaningful tactics to translate the strategy to reality
• viable implementation plan
• process for evaluating program success

Question 13

brand activism

Answer 13

a company taking a stance on an important or controversial social, economic, environmental, or political issue; has important societal implications (e.g. Nike and Colin Kaepernick)

Question 14

sustainability

Answer 14

the ability to meet humanity’s needs without harming future generations

Question 15

main sectors where there is consumer interest for green products

Answer 15

• auto
• energy
• technology
• personal care
• food
• household

Question 16

greenwashing

Answer 16

providing misleading information or giving the impression that products or practices are more environmentally friendly than they really are

Question 17

main downside of green products

Answer 17

can be more expensive due to costlier ingredients and higher transportation costs due to lower volumes

Question 18

major environmental trends for marketers to be aware of

Answer 18

• shortage of raw materials
• increased cost of energy
• increased pollution levels
• changing role of governments

Question 19

main legal regulations involving advertisements

Answer 19

advertisers must not make false claims, use false demonstrations, or create ads with the capacity to deceive, even if no one is actually deceived; sellers are also legally obligated to avoid bait-and-switch advertising

Question 20

what is one key demographic that consumer protection advocates are concerned about?

Answer 20

children who are online

Question 21

SoLoMo

Answer 21

Social Local Mobile; young people who are highly mobile and happy to share their locations via apps and communicate with others by phone

Question 22

socially responsible targeting

Answer 22

targeting that serves not only the company’s interests but also the interests of those targeted; the issue is not who is targeted, but how they are targeted and for what purpose

Question 23

what is a major area of concern regarding customer privacy?

Answer 23

geolocation; companies can pinpoint a person’s whereabouts using technology to track daily routines, frequently visited establishments, and even movements within a retail store

Question 24

why are consumers accepting more privacy intrusions over time?

Answer 24

• they don’t realize how much information they’re giving out
• they don’t feel like they have a choice
• they don’t think it really matters

Question 25

General Data Protection Regulation

Answer 25

EU regulation that required data processors to clearly disclose any data collection, reveal the purpose of the data collection, state how long data are being retained, and disclose whether the data are being shared with any third parties