The Shoe Company TOMS Gives a Pair of Shoes to a Needy

question 48

Multiple Choice

The shoe company TOMS gives a pair of shoes to a needy child for every pair that it sells. This is an example of a company which has integrated ________ into its business model.

• A) correction marketing
• B) environmental marketing
• C) corporate social responsibility
• D) ethical marketing requirements

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Definitions:

Opportunity Cost

The lost potential gain from other alternatives when one alternative is chosen.

Income Effects

The changes in an individual's or economy's income and how that changes their spending and saving behavior.

Substitution Effects

The change in consumption patterns due to a change in the relative prices of goods.

Normal Goods

Goods for which demand goes up when income is higher and for which demand goes down when income is lower.