New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    A key difference between cause marketing and an outright charitable contribution is:

    A a charitable contribution counts as a higher tax deduction Correct Answer Incorrect Answer
    B there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts made in the course of one year. Correct Answer Incorrect Answer
    C charitable donations are contributed at the sole discretion of the firm; with cause marketing the amount is directly affected by the consumers' purchases. Correct Answer Incorrect Answer
    D cause marketing is generally linked to public causes and concerns and straight charitable contributions are generally given to private institutions. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Cause marketing occurs when the charitable contributions of a firm are tied directly to the customer revenue produced through the promotion of one of its products.

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