The Danger with Cause-Related Marketing Is That It Can Backfire

question 115

True/False

The danger with cause-related marketing is that it can backfire if cynical consumers question the link between the product and the cause and see the firm as self-serving and exploitive.

---

Definitions:

Allocative Efficiency

A scenario in resource distribution where improving the situation of any single person is achievable only at the expense of another's wellbeing.

Productive Efficiency

A situation where goods or services are produced at the lowest possible cost, utilizing resources in the best way possible without waste.

Equilibrium Price

The price at which the quantity of goods demanded is equal to the quantity of goods supplied, resulting in a stable market condition.

Surpluses

Surpluses occur when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.