Pandora Products Is a National Company That Produces a Line

question 193

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 marketing department of Pandora is recommending to the CEO that Pandora focus future advertising on green marketing and emphasize its pro-environmental approach and natural product ingredients. The CEO does not agree and argues that it is not a good idea to focus on green marketing. Which of the following statements, if true, would support the argument made by the marketing department?
Studies indicate that most consumers' actual purchases of "green" products occur only when other factors (such as price, quality, and amount) are equal.
Some 4 percent of the consumers of Pandora's breakfast oatmeal are considered True Blue Greens, or active environmentalists.
Company reputation can be damaged if the company is considered to be "greenwashing," or faking being green.
Pandora's breakfast oatmeal, while made of a natural product (oatmeal), also contains additives that are not organic or considered truly natural.
Green marketing would differentiate the oatmeal from the competition and could provide an advantage that would increase sales.

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Definitions:

Par Value

The face value of a bond or the stated value of a stock as specified by the issuing company.

Fair Value

The monetary return from an asset's sale or the expenditure for transferring a liability in an orderly market dialogue on the assigned valuation day.

Stock Issuance Costs

Expenses associated with the process of issuing new stocks in the market, such as legal fees, printing expenses, and commissions.

Financial Statements

Materials that present a snapshot of a business's financial health, detailing the balance sheet, income statement, and cash flow statement.