Deck 7: Marketing

Question 1

______ means addressing the benefits of a product or service, and consumer expectations about the company's social, economic, or environmental responsibility.

A) Risk management
B) Sustainable operations
C) Marketing sustainability
D) Initial Public Offering

Answer 1

Marketing sustainability

Question 2

Financial analysis indicates that approximately 70% of a typical private firm's assets are ______, such as goodwill, that can be lost when communications fail.

A) Inventory
B) Intangibles
C) Irrelevant
D) Over-valued

Answer 2

Intangibles

Question 3

Conventional marketing carries a few misconceptions about the quality of "environmentally friendly" products, namely that they are less ______ than traditional products.

A) Available
B) Effective
C) Customizable
D) Costly

Answer 3

Effective

Question 4

Approximately ______ of the adult consumer population of the United States is one of four shades of green, with unique reasons for preferring sustainable products and services to conventional ones.

A) 20%
B) 40%
C) 60%
D) 80%

Question 5

The consumer segment of Lifestyle of Health and ______ can be characterized as early adopters of sustainable products who are loyal to brand, influential in their community, and choose sustainable products out of ethical commitment.

A) Fitness
B) Activism
C) Community
D) Sustainability

Question 6

The consumer segment of ______ can be characterized as those who seek safer product alternatives because they want to prevent children from exposure to chemicals in the household.

A) Parents
B) Naturalite
C) Drifter
D) Conventional

Question 7

The consumer segment ______ tends to be driven by trends with no integration of values into lifestyle or purchases. They might buy a sustainable product simply because doing so is popular at the time.

A) Drifter
B) Unconcerned
C) Conventional
D) Health and Fitness

Question 8

The consumer segment ______ tends to seek extra durable and even refurbished products simply as a means of avoiding costs.

A) Naturalite
B) Drifter
C) Conventional
D) Middle class

Question 9

Only one consumer segment does not care about sustainable products: the ______, which is predominately young males with low income and little education.

A) Conventional
B) Drifter
C) Unconcerned
D) Naturalite

Question 10

There exist market opportunities for sustainable small and mid-sized enterprises in a variety of sectors: consumer products, construction, finance, energy, transportation, and ______.

A) Sport hunting
B) Art
C) Mortgage-backed securities
D) Food products

Question 11

The halo effect is the tendency of consumers to make positive ______ about a company's sustainability on the basis of very limited information.

A) Inferences
B) Investments
C) Tradeoffs
D) Word of mouth

Question 12

The Internet age created a ______ marketplace for products and services.

A) Global
B) Digital
C) Low-transaction cost
D) All of the above

Question 13

Thanks to online advertising, an ad can go ______, proliferating through social media networks in a short period.

A) Bacterial
B) Viral
C) Unnoticed
D) Time-lapse

Question 14

Under the FTC's Deception Policy Statement, an ad is deceptive if it contains (or omits) information that is likely to ______ consumers acting reasonably under the circumstances, and is material in that it effects purchasing behavior.

A) Mislead
B) Inform
C) Persuade
D) Confuse

Question 15

Under the FTC's ______ Policy Statement, an advertisement is unfair if it is likely to cause unavoidable and substantial injury to a consumer, and the risk of injury is not outweighed by the benefits of the advertisement.

A) Justice
B) GreenGuide
C) Unfairness
D) Marketing

Question 16

The U.S. Federal Trade Commission may consider third-party certifications to be a commercial ______, subjecting these arrangements to truth-in-advertising rules.

A) Endorsement
B) Franchise
C) Investment vehicle
D) Interest

Question 17

According to FTC's Guidelines, marketers of sustainable products should ______ use generic unqualified environmental benefit claims, such as "eco-friendly."

A) Always
B) Not
C) Generally
D) None of the above

Question 18

According to FTC's Guidelines, marketers who claim a product is non-toxic must provide competent and reliable ______ that the product is safe for people and the environment.

A) Eyewitness testimony
B) Scientific evidence
C) Opinion polls
D) Promises

Question 19

According to the FTC's Endorsement Guides, third-party seals of approval should be ______, specific about the basis for the approval, and substantiated with evidence.

A) Free
B) Color-coded
C) In-house
D) Unbiased

Question 20

Whereas product-related information describes product attributes such as ingredients and price, ______-related information describes the methods and practices that went into producing a consumer good.

A) Service
B) Function
C) Supplier
D) Process

Question 21

Using marketing to promote the idea that a company is more socially responsible than it actually is can be described as ______.

A) Greenwashing
B) Coat-tailing
C) Halo effect
D) Competitive

Question 22

In order to market sustainability, a company must offer a product or service that has ______ social and environmental performance relative to industry standards.

A) Cheaper
B) Unknown
C) Superior
D) Decreased

Question 23

In the context of brand development, ______ is when a company introduces new items in the same category under the same brand.

A) Marketing
B) Promotional
C) Sale item
D) Line extension

Question 24

In the context of brand development, ______ extension is when marketers use a successful brand to launch new or modified products in a different category.

A) New product
B) Brand
C) Line
D) Process

Question 25

In the context of brand development, the ______ approach involves two or more sustainability brands within the same product category.

A) Mixed media
B) Parallel processing
C) Multi-brand
D) Traditional

Question 26

Marketing sustainability proceeds in three stages of separation from traditional marketing. Stage I is defined by improving standards of social and environmental performance relative to ______.

A) Competitors
B) Other nations
C) Other sectors
D) UN Millennium Development Goals

Question 27

Marketing sustainability proceeds in three stages of separation from traditional marketing. Stage II is defined by collaborating with ______ to create sustainable products and services accompanied by reciprocal changes in consumer behavior.

A) Competitors
B) Government
C) Consumers
D) Other sectors

Question 28

Marketing sustainability proceeds in three stages of separation from traditional marketing. Stage III is defined by enabling breakthroughs in sustainable design that have the potential to reshape ______.

A) Culture
B) Consumption levels
C) Markets
D) All of the above

Question 29

In coordinated markets such as the European Union, because sustainable policies tend to be built-in requirements of applicable laws and social license, sustainability tends to be a(n) ______ element of institutional frameworks.

A) Explicit
B) Unpredictable
C) Implicit
D) Voluntary

Question 30

In liberal market economies such as the United States, because sustainable policies tend to be discretionary and not required by law, sustainability tends to be a(n) ______ element of corporate policy.

A) Explicit
B) Invisible
C) Controversial
D) Implicit

Question 31

Marketing the superior social and environmental performance of a product or service drives revenue and differentiation, and is therefore a critical element in the ______ of a sustainable enterprise.

A) Implicit element
B) Business case
C) Defense
D) Mitigation bank

Question 32

The challenge of indirect benefits occurs when the social, economic, or environmental benefits of a company's sustainability commitments do not directly benefit primary ______.

A) Shareholders
B) Representatives
C) Suppliers
D) Customers or clients

Question 33

The challenge of ______ occurs when a sustainable product sacrifices attributes of traditional products (such as increased price) in favor of special attributes (such as reduced environmental impact).

A) Tragedy of the commons
B) Product obsolescence
C) Trade-offs
D) Over-specialization

Question 34

The challenge of target audience means sustainable products offering indirect benefits must be marketed to specific subgroups based on the ______ and lifestyle of the customer, not just demographic information.

A) Wealth
B) Race
C) Gender
D) Personal values

Question 35

The challenge of salience refers to the difficulty of aligning sustainable marketing initiatives with the issues most ______ to consumers at the time.

A) Frightening
B) Relevant
C) Troublesome
D) Controversial

Question 36

The challenge of ______ is to align marketing claims with actual corporate conduct so that these claims are both significant and sincere.

A) Credibility
B) Importance
C) Dissimulation
D) Greenwashing

Question 37

There are three types of certification programs: ______ (such as certification from a non-profit), standards-based (such as ISO 14000), and mandatory (such as hazard warning signs).

A) Environmental
B) Social
C) Economic
D) Voluntary

Question 38

Fair Trade is a product ______ that verifies agricultural ingredients come from suppliers that pay fair prices to farm laborers.

A) Ingredient
B) Brand
C) Labor union
D) Certification

Question 39

The Rainforest Alliance assists forestry and ______ sectors to conserve biodiversity by promoting and evaluating the implementation of sustainability standards.

A) Agricultural
B) Tourism
C) Automotive
D) Construction

Question 40

______ means that certification design should be based on facts of actual performance, not simply changes to industry process inputs or good intentions.

A) Specificity
B) Consistency
C) Objectivity
D) Pertinence

Question 41

______ means that criteria for product certification, such as "environmentally friendly," are defined clearly throughout the certification process to prevent ambiguity or equivocation.

A) Impartiality
B) Objectivity
C) Efficacy
D) Specificity

Question 42

______ means that certification criteria are uniform from year to year, to prevent the significance of certification from becoming outdated and less meaningful over time.

A) Sufficiency
B) Consistency
C) Efficacy
D) Specificity

Question 43

To ensure that sustainable certification provides a distinction that makes a meaningful difference, comparisons of environmental performance should be between ______ products.

A) Separate category
B) Three or more
C) Identical
D) Functionally equivalent

Question 44

Relevancy and sufficiency in certification design means product labels balance the costs and benefits of additional ______ and provide only what is relevant to customers.

A) Advertisements
B) Ingredients
C) Information
D) PR

Question 45

______ in certification design allows customers to know in real time what social or environmental objective their purchase of a sustainable product will accomplish.

A) Efficacy
B) Relevance
C) Consistency
D) Sufficiency

Question 46

The Roundtable on Sustainable Palm Oil (RSPO) was formed to promote the growth and use of sustainable oil palm products through ______ and engagement of stakeholders.

A) Lobbying
B) Discounts
C) Financial incentives
D) Credible standards

Question 47

______ means introducing a product or service to the market to inform prospective customers of attributes and to persuade them to make a purchase.

Question 48

The Natural Marketing Institute found that adult consumers in developed countries can be ______ according to attitudes toward sustainability.

Question 49

Small and Mid-Sized Enterprises are seeing substantial ______ to market sustainable products and services across a variety of sectors.

Question 50

The Federal Trade Commission may consider a marketing campaign featuring the slogan, "Non-toxic," to be ______ if the product contains toxic ingredients.

Question 51

"Carbon ______" means that the carbon pollution associated with a product, generated by a company's supply chain and operations, is more than offset by mitigation projects.

Question 52

Distinguish the five consumer segments for sustainable products and services.

Question 53

Explain the purpose of the FTC's Deception Policy Statement, Unfairness Policy Statement, and Endorsement Guides relating to truth-in-advertising.

Question 54

Explain the FTC's marketing guidelines for general environmental benefit claims and free-of claims.

Question 55

Distinguish product-related information from process-related information.

Question 56

Explain the relationship between the halo effect and greenwashing.