The scenario primarily reflects the idea of stimulus diffusion, as it suggests that the transnational corporation is achieving greater profits while embracing local culture through the use of locally sourced botanical fragrances. By featuring a popular entertainer from a South Asian city in its marketing campaign, the corporation is not only appealing to local cultural sensibilities but also integrating local products into its global branding strategy, which represents a blending of global business practices with local cultural elements.
Thus, the correct response would be:
Stimulus diffusion allows the transnational corporation to achieve greater profits while embracing local culture.