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)number of employees, a geographic variable.
B)the NAICS code, a demographic variable.
C)population density, a geographic variable.
D)the nature of good, a customer characteristic variable.

Question

Quizplus · Accepted Answer

Starbucks based its decision on population density, which is a geographic variable. This suggests that Starbucks believed there was enough demand for coffee in the Boston area to justify entering the market, even if Coffee Connection owned many prime locations.

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