CPM Global, Ethical, & Sustainable Marketing 3 — Questions and Answers
Question 1: Which concept describes the total environmental burden of a product from raw material extraction through end-of-life disposal?
- Carbon footprint
- Life-cycle assessment (LCA) (Correct answer)
- Environmental impact statement
- Scope 3 emissions audit
Correct answer: Life-cycle assessment (LCA)
Life-cycle assessment (LCA) systematically measures a product's environmental inputs and outputs across every stage of its existence.
Question 2: A marketer adapts both product formula and advertising copy for each country. This is called:
- Dual adaptation (Correct answer)
- Straight extension
- Product invention
- Glocalization lite
Correct answer: Dual adaptation
Dual adaptation changes both the product and the promotional message to suit local needs, maximizing local relevance at higher cost.
Question 3: Under the Foreign Corrupt Practices Act (FCPA), US companies are prohibited from:
- Paying standard import tariffs in foreign markets
- Offering 'facilitation payments' for routine government actions
- Charging different prices in different countries
- Bribing foreign officials to obtain or retain business (Correct answer)
Correct answer: Bribing foreign officials to obtain or retain business
The FCPA prohibits US persons and entities from bribing foreign government officials for business advantage, with criminal and civil penalties.
Question 4: A global brand scores high on the Edelman Trust Barometer in some markets but not others. The most likely explanation is:
- Differences in product quality by region
- Varying cultural values and local reputation history (Correct answer)
- Inconsistent pricing strategies
- Different advertising budgets by country
Correct answer: Varying cultural values and local reputation history
Trust perceptions are shaped by cultural values, historical brand behavior, and local media coverage, which vary significantly across markets.
Question 5: Which ISO standard specifically addresses environmental management systems and is frequently cited in sustainable marketing claims?
- ISO 9001
- ISO 14001 (Correct answer)
- ISO 26000
- ISO 45001
Correct answer: ISO 14001
ISO 14001 sets requirements for an environmental management system, helping organizations improve their environmental performance systematically.
Question 6: A consumer goods company creates a separate product line priced affordably and distributed through informal channels for low-income consumers in emerging markets. This strategy is known as:
- Reverse innovation
- Base-of-the-pyramid (BOP) marketing (Correct answer)
- Penetration pricing
- Gray market distribution
Correct answer: Base-of-the-pyramid (BOP) marketing
Base-of-the-pyramid marketing designs products and distribution specifically for the large, low-income segment at the bottom of the global income scale.
Question 7: When a global marketing team encounters a conflict between headquarters' ethical guidelines and accepted local business practices, the recommended approach is to:
- Default to local practice to avoid cultural imperialism
- Apply headquarter standards unconditionally in all markets
- Identify a principled resolution that upholds core values while respecting local context (Correct answer)
- Escalate all conflicts to government regulators
Correct answer: Identify a principled resolution that upholds core values while respecting local context
Best practice is to uphold non-negotiable core ethical principles while engaging culturally sensitive dialogue — neither pure relativism nor blind imposition.
CPM Global, Ethical, & Sustainable Marketing 3
Which concept describes the total environmental burden of a product from raw material extraction through end-of-life disposal?