Which of the Following Is True Regarding Cause-Related Marketing

question 62

Multiple Choice

Which of the following is true regarding cause-related marketing?

• A) The positive impact of cause-related marketing can be increased through sporadic involvement with numerous causes.
• B) Many companies focus on multiple causes to simplify execution and maximize impact.
• C) Limiting support to a single cause increases the pool of stakeholders who can transfer positive feelings from the cause to the firm.
• D) Most firms choose causes that fit their corporate or brand image and matter to their employees and shareholders.
• E) In order to avoid public backlash, firms are advised to adopt a hard-sell approach to their cause efforts.

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Definitions:

Simple Rate of Return

The percentage of annual incremental net operating income to the initial investment cost.

Cash Operating Costs

Expenses directly related to the production of goods or provision of services that must be paid in cash.

Annual Depreciation

The allocation of the cost of an asset over its useful life, recognized each year.

Scrap Now

The action of disposing of materials or products that are no longer useful or sellable immediately.