Sustainable Marketing Chapter 8

What is quarterly capitalism?

A:
Focusing on short-term profits and quarterly results.

Example:
A company focuses on next quarter's profits instead of long-term sustainability.

MCQ:
Quarterly capitalism focuses on:

a) Long-term sustainability

b) Short-term profits ✅

c) Recycling

d) Circular economy

What are the three sustainability problems for companies?

There are three problems:

1. 💰 Companies do not want extra costs.

2. 🌍 People use too many resources without paying for all the damage.

3. 📊 Companies need better ways to make decisions.

Example:
🏭 A factory pollutes nature, but does not pay the full cost of the damage.

What is a business model?

A:
A business model explains how a company creates, captures, and delivers value.

Example:
Netflix creates value through streaming and earns money through subscriptions.

MCQ:

A business model explains:

a) Taxes

b) How a company creates and earns value ✅

c) Only marketing

d) Only production

What is the Business Model Canvas?

A:

A simple tool that shows how a business works.

It shows:

👥 Customers

💡 Value (what customers get)

🏢 Business activities

Example:
📋 A simple picture of how Netflix gets customers and makes money.

Possible MCQ:

What is the Business Model Canvas used for?

a) Paying taxes

b) Showing how a business works ✅

c) Hiring employees

d) Making products

What is a sustainable business model?

A:
A business model that creates economic, social, and environmental value.

Example:
A company reduces pollution while earning profits.

What are the five propositions of sustainable business models?

A:

🌱 Sustainable value = Create value for people, planet, and profit.

Example: Selling eco-friendly products.

🔄 Sustainable value flows = Value should help everyone involved.

Example: Customers, workers, and suppliers all benefit.

🤝 New value networks = Work together with others.

Example: A company works with recycling partners.

👥 Stakeholder consideration = Think about everyone affected.

Example: Consider customers, employees, society, and the environment.

💰🌍 Internalizing externalities = Take responsibility for negative impacts.

Possible MCQ:

Which proposition means considering people affected by the business?

a) Sustainable value flows

b) Stakeholder consideration ✅

c) New value networks

d) Internalizing externalities

Why can outsourcing create sustainability challenges?

A:

A company lets another company do some work for them, so it is harder to check everything.

Example:
👕 A clothing company uses a factory in another country, but the factory may not follow environmental rules.

Possible MCQ:

Why can outsourcing be a sustainability challenge?

a) Companies have more control

b) Companies have less control over suppliers ✅

c) Products become free

d) Customers disappear

What is the attitude-behavior gap?

A:

People say sustainability is important but often buy cheaper products.

Example:
🥦 A person says they care about the environment but buys the cheaper product instead.

Possible MCQ:

What is the attitude-behavior gap?

a) People always do what they say

b) People say sustainability is important but do not always act that way ✅

c) People recycle more

d) Companies lower prices

What is sustainable business model innovation?

A:
Changing business models to improve sustainability.

Example:
A company starts renting products instead of selling them.

What are the four types of sustainable business model innovation?

A:

🌱 Sustainable Start-Up = Start a new sustainable company.

Example: A new company selling reusable water bottles.

🔄 Transformation = Change an existing company.

Example: A car company starts making electric cars.

➕ Diversification = Add a new sustainable business.

Example: A clothing company starts selling second-hand clothes.

🛒 Acquisition = Buy a sustainable company.

Example: A large company buys a recycling company.

Possible MCQ:

Which type means buying another company?

a) Start-Up

b) Transformation

c) Diversification

d) Acquisition ✅

What are barriers to circular business models?

A:

💰 Low profits = Companies may not earn enough money.

📊 Hard to predict profits = Companies do not know how much money they will make.

⚖ Old laws = Some laws make it harder to reuse waste and resources.

Example:
♻ A company wants to reuse waste, but old rules do not allow it.

Memory Tip:
Money → Uncertainty → Laws

Possible MCQ:

Which is a barrier to circular business models?

a) Easy profits

b) Outdated laws ✅

c) More recycling

d) More customers

What are sharing platforms?

A:

Sharing platforms help people share things with each other.

Example:
🏠 Airbnb lets people rent out their homes.

Possible MCQ:

What do sharing platforms do?

a) Help people share resources ✅

b) Build factories

c) Create taxes

d) Make laws

What is product life extension?

A:
Making products last longer through repair, resale, or upgrading.

Example:
Repairing an old laptop.

What is resource recovery?

A:

Getting something useful from waste instead of throwing it away.

Example:
🍌 Food waste is turned into biogas (energy).

Possible MCQ:

What is resource recovery?

a) Throwing waste away

b) Getting value from waste ✅

c) Buying new materials

d) Using more resources

What is a Circular Business Model (CBM)?

A:

A business model that keeps products and materials in use for as long as possible.

Goal:

♻ Reduce waste

🔄 Reuse products

🛠 Repair products

♻ Recycle materials

Example:
📱 Repairing and reusing a phone instead of throwing it away.

Possible MCQ:

What is the main goal of a Circular Business Model?

a) Increase waste

b) Keep resources in use longer ✅

c) Use more raw materials

d) Sell more products

What are circular supplies?

Using materials that can be used again or are better for the environment.

Example:
📦 Packaging that breaks down naturally.

Possible MCQ:

What are circular supplies?

a) Materials that can be reused, recycled, or break down naturally ✅

b) Materials that create more waste

c) Materials used only once

d) Materials that cannot be recycled

What is a Product-Service System (PSS)?

A:

A business model where customers pay to use something instead of owning it.

🎯 The goal is: Use fewer resources and create less waste.

Examples:

🚲 Renting a bike instead of buying one.

🖨 Paying for printing instead of buying a printer.

Possible MCQ:

What is the main idea of PSS?

a) Owning more products

b) Access instead of ownership ✅

c) Producing more waste

d) Selling more products

What are the seven areas of PSS?

A:

🏢 Business orientation = How the company works.

Example: Focus on renting instead of selling.

📊 Performance indicators = Measuring success.

Example: How much waste is reduced.

🤝 Collaboration = Working together.

Example: A company works with suppliers.

📋 Requirements = What is needed.

Example: Customers need a working printer.

🛠 Services = Help provided with the product.

Example: Repair service included.

💰 Costs = Money spent.

Example: Maintenance costs.

🔄 Flexibility = Ability to adapt.

Example: Customers can change their subscription.

Possible MCQ:

Which area of PSS is about working together with others?

a) Costs

b) Collaboration ✅

c) Flexibility

d) Requirements

What are the main types of PSS?

A:

Three main PSS types

🔹 Function-based = Add new functions.

Example: A fridge with AI features.

🔹 Value-added = Add extra value.

Example: Free maintenance included.

🔹 Evidence-based = Show proven results.

Example: Reports showing energy savings.

Performance-based PSS types

🔹 Solution-oriented = Sell a solution.

Example: Selling fuel savings.

🔹 Effect-oriented = Sell a result.

Example: Guaranteed room temperature.

🔹 PB-EO = Sell performance instead of a product.

Example: Selling heating instead of radiators.

🔹 PB-DO = Sell customer comfort.

Example: Selling thermal comfort.

Possible MCQ:

Which PSS type sells a promised result instead of a product?

a) Function-based

b) Effect-oriented ✅

c) Value-added

d) Evidence-based

What is the main challenge of PSS?

A:

Making sure all three sustainability goals are met.

🌍 Environment

👨 Society

💰 Economy

Example:
A service may reduce pollution but still needs to make money.

Possible MCQ:

What is the main challenge of PSS?

a) Selling more products

b) Balancing economic, social, and environmental sustainability ✅

c) Increasing waste

d) Reducing customers

What is a social enterprise?

A:

A business that helps society and also earns enough money to survive.

Example:
👕 A clothing library that reduces textile waste.

Possible MCQ:

The main goal of a social enterprise is:

a) Only profit

b) Social value and financial sustainability ✅

c) Advertising

d) Tax reduction

What is a B Corp?

A:

A company officially certified for high social and environmental standards.

Example:
🌱 A company proven to care about people and the environment.

Memory Tip:
B Corp = Certified sustainable company.

Possible MCQ:

What is a B Corp?

a) A government agency

b) A company certified for social and environmental responsibility ✅

c) A recycling center

d) A charity

What are P2P Platforms, Network Effects, Two-Sided Markets, and MaaS?

A:

👥 P2P Platform = Connects people directly.

Example: Airbnb.

📈 Network Effects = More users = more value.

Example: More Airbnb hosts attract more guests.

🔄 Two-Sided Market = Connects two groups.

Example: Uber connects drivers and passengers.

🚍 MaaS (Mobility-as-a-Service) = One app for many transport options.

Example: One app for buses, trains, taxis, and bikes.

Possible MCQ:

What is an example of a two-sided market?

a) Factory production

b) Uber ✅

c) Recycling center

d) Warehouse