When evaluating entry into the large Boston market, Seattle-based Starbucks Coffee Company found that Coffee Connection, a well-established local chain, already occupied many prime locations. Starbucks entered the market anyway because it based its decision on:
A)the nature of good, a customer characteristic variable.
B)population density, a geographic variable.
C)number of employees, a geographic variable.
D)the NAICS code, a demographic variable.

Question

Quizplus · Accepted Answer

Starbucks based its decision on population density, which is a geographic variable. Despite the competition from Coffee Connection, Starbucks believed that the high population density in Boston would support its growth in the market.

When Evaluating Entry into the Large Boston Market, Seattle-Based Starbucks