B1 Benefits of CSR

People with a positive opinion of a business might be more likely to contribute to positive word of mouth because:

• they want to support the business.

• they have no other businesses to talk about.

• they are paid to do so.

• they have nothing else to do.

Answer explanation

People with a positive opinion of a business are likely to contribute to positive word of mouth because they want to support the business, reflecting their satisfaction and desire to promote it.

According to a study, what percentage of customers would switch to a brand if it was associated with a good cause?

• 74%

• 84%

• 64%

• 94%

Answer explanation

According to the study, 84% of customers indicated they would switch to a brand associated with a good cause, making this the correct choice. This highlights the significant impact of social responsibility on consumer behavior.

According to Laksmono & Purnama (2024), what is the impact of CSR on customer loyalty?

• CSR has a positive impact on customer loyalty.

• CSR has a negative impact on customer loyalty.

• CSR has no impact on customer loyalty.

• CSR's impact on customer loyalty is uncertain.

Answer explanation

According to Laksmono & Purnama (2024), CSR positively influences customer loyalty, indicating that companies engaging in corporate social responsibility are likely to foster stronger loyalty among their customers.

Explain how a positive CSR image can enhance customer loyalty and brand image according to the passage.

• A positive CSR image can enhance customer loyalty by building trust and credibility, leading to increased brand loyalty and a stronger brand image.

• A positive CSR image can enhance customer loyalty by reducing product prices, leading to increased sales and a stronger brand image.

• A positive CSR image can enhance customer loyalty by increasing advertising efforts, leading to a more recognizable brand image.

• A positive CSR image can enhance customer loyalty by offering more product variety, leading to a more diverse brand image.

Answer explanation

A positive CSR image builds trust and credibility with customers, which fosters loyalty. This trust enhances brand loyalty and strengthens the overall brand image, making the correct choice the first option.

What role does a company's commitment to social and environmental causes play in customer perception, as mentioned in the passage?

• It enhances customer perception positively.

• It has no impact on customer perception.

• It negatively affects customer perception.

• It is irrelevant to customer perception.

Answer explanation

A company's commitment to social and environmental causes positively enhances customer perception, as it reflects values that resonate with consumers, fostering loyalty and trust.

What is one benefit for businesses of adopting a CSR policy according to the passage?

• Improved public image

• Increased operational costs

• Decreased employee satisfaction

• Reduced market share

Answer explanation

One benefit for businesses of adopting a CSR policy is an improved public image. This positive perception can enhance customer loyalty and attract new clients, making it a strategic advantage.

According to the passage, how much more are people willing to pay for socially responsible products?

• 10%

• 16.8%

• 20%

• 25%

Answer explanation

The passage indicates that consumers are willing to pay 16.8% more for socially responsible products, making this the correct choice among the options provided.

Customers are generally more willing to pay higher prices for socially responsible products because:

• They are influenced by marketing strategies.

• They value ethical and sustainable practices.

• They have no other options available.

• They are unaware of the actual product cost.

Answer explanation

Customers are willing to pay higher prices for socially responsible products because they value ethical and sustainable practices, reflecting their commitment to social responsibility over mere cost.

According to the Price, Waterhouse & Cooper’s (PwC) Voice of the Consumer Survey 2024, what percentage of consumers are willing to pay more for sustainable goods?

• 70%

• 80%

• 90%

• 100%

Answer explanation

According to PwC's Voice of the Consumer Survey 2024, 80% of consumers are willing to pay more for sustainable goods, indicating a strong preference for environmentally friendly products.

Some of the environmental criteria that consumers consider when paying a premium for goods are:

• Sustainability, carbon footprint, and recyclability

• Price and brand reputation

• Color and design

• Warranty and customer service

Answer explanation

Consumers often pay a premium for goods based on environmental criteria like sustainability, carbon footprint, and recyclability, as these factors reflect their values and concern for the planet.