Innovators at 3M Developed Scotchbrite® Never Rust Wool Soap Pads

question 39

Multiple Choice

Innovators at 3M developed Scotchbrite® Never Rust Wool Soap Pads from recycled plastic bottles.Even though these soap pads are more expensive than competitive brands (Brillo and SOS) , customers are willing to pay the premium price.Customers appreciate the value of a superior product (they don't rust or scratch) and appreciate the fact that their purchase is environmentally responsible.This demonstrates that

• A)an organization can be environmentally conscious while still satisfying its customers and remaining competitive in the market.
• B)an organization can use a customer's sense of social responsibility to its own advantage even though the effects are minimal.
• C)if a company uses recycled materials, they can always charge more than what a product is actually worth.
• D)it is more important to act in a socially responsible manner than to consider the profits and goals of the organization.
• E)the first brand that creates a new product gets to charge the highest price and make the largest profits.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Withdraw

To remove something from consideration or usage, or to take money out of a bank account.

Invest Enough Money

The process of allocating adequate financial resources to opportunities, projects, or assets to achieve desired outcomes or returns.

Net Present Value Analysis

A method used in capital budgeting to evaluate the profitability of an investment or project by computing the present values of all cash flows related to it.