When QANTAS airlines launched its low-cost carrier,Jetstar,it soon found that Jetstar's budget prices appealed to a new market segment made up of first-time travellers who had previously been locked-out of air travel due to perceptions of high price.Jetstar's ability to reach first-time travellers is an example of ________ by QANTAS.
A)market segmentation
B)market penetration
C)diversification
D)market development
E)product development

Question

Quizplus · Accepted Answer

Market development is the correct answer because it involves expanding the potential market through new users or new uses for a product. In this case, QANTAS, through Jetstar, reached out to first-time travelers, effectively developing a new market segment that had not been served before.

When QANTAS Airlines Launched Its Low-Cost Carrier,Jetstar,it Soon Found That