Pandora Products Is a National Company That Produces a Line

question 58

Short Answer

Pandora Products is a national company that produces a line of hot breakfast cereals, mainly featuring flavored instant oatmeal. Its products are sold in grocery stores across the country, but the company has faced stiff competition from larger, well established companies.
The public relations department of Pandora has recommended to the CEO that Pandora become involved in cause-related marketing to increase its positive brand image and goodwill for the company. The PR department recommends that the National Heart Association would be a good tie-in for the oatmeal line, and it could emphasize the heart-healthy aspects of the products. The CEO argues that aligning the products with the Heart Association would not be good for Pandora. Which of the following consumer survey results, if true, would support the argument made by the CEO?
59 percent indicate that too much publicity about a company's alignment with a charity leads to increased concerns about commercial gain.
54 percent say they are willing to pay more for a brand that is associated with a cause.
66 percent indicate they would switch brands to support a particular cause.
78 percent state they are more likely to purchase a brand associated with a cause that they care about.
84 percent say that cause-related marketing increases the positive image of a company.

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Definitions:

Tax Law Provision

A specific clause or element within tax legislation designed to guide tax liability, exemptions, or credits.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Marketplace Needs

The demands and requirements of consumers in a particular market, which businesses aim to meet through the development and sale of products and services.

Critical Thinking

Ability to analyze and assess information to pinpoint problems or opportunities.