Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs and high-speed wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate

Question

Quizplus · Accepted Answer

A product-development strategy focuses on developing new products or improving existing ones to increase sales and meet the needs of existing customers. The introduction of new in-store merchandise such as compilation CDs and wireless access is a clear example of this strategy. Market-penetration strategy aims to increase sales of existing products in existing markets, while diversification and market-development strategies involve exploring new markets and introducing new products or services. The term "conglomerate" refers to a corporation that owns several unrelated businesses.

Once Starbucks Established Its Presence in Thousands of Cities Internationally