Once Starbucks had 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

The strategy described in the sentence is focused on developing and introducing new products (compilation CDs and high-speed wireless access) to increase purchases by existing customers, which is the essence of product development. Market-penetration would involve increasing sales of existing products in existing markets, diversification would involve entering new markets or industries, market-development would involve entering new geographic markets, and conglomerate is not a relevant strategy in this context.

Once Starbucks Had Established Its Presence in Thousands of Cities