Pandora Products is a national company that produces a line of hot breakfast cereals, mainly featuring flavored instant oatmeal. Its products are sold in grocery stores across the country, but the company has faced stiff competition from larger, well established companies. Aligning the Pandora brand with a national nonprofit has many benefits. However, the CEO is still not convinced. Which of the following statements, if true, would support the argument made by the CEO to not tie sales of Pandora's breakfast oatmeal to the American Heart Association?
A) The move might inspire competitors to seek similar such associations.
B) Federal regulation of health-related claims has decreased in recent years.
C) Pandora would garner public goodwill for the future.
D) Associating with a nonprofit would lead to better relations with governmental agencies.
E) If the nonprofit received negative publicity over something, the consumer reaction could have a spillover effect on Pandora.

Question

Quizplus · Accepted Answer

This statement suggests that associating with a nonprofit has potential risks, as negative publicity for the nonprofit could harm Pandora's reputation and sales. This supports the CEO's argument against tying sales to the American Heart Association. The other options are either neutral or supportive of the idea, which weakens the CEO's argument.

Pandora Products Is a National Company That Produces a Line