Source Perrier S

question 42

Multiple Choice

Source Perrier S.A., the supplier of Perrier bottled water, when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of
The quality and purity of our product." Perrier demonstrated what?

• A)a corporate value consciousness
• B)stakeholder responsibility
• C)social marketing
• D)recall marketing

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Definitions:

Aggregate Demand

The total market appetite for goods and services within an economy, delineated at a specific price level over an agreed time duration.

Average Price Level

An economic indicator that represents the overall level of prices in the economy by averaging the prices of all goods and services over a period.

Vertical Aggregate Supply Curve

A graphical representation where the aggregate supply does not change with the price level, indicating an economy at full employment.

Classical Economists

A group of 18th and 19th-century economists who believed in the theory that markets operate under the laws of supply and demand and that markets will self-regulate.