McDonald's started with a simple concept in 1940 - fast service offering only hamburgers, cheeseburgers, potato chips, and drinks at the start. However, they menu soon expanded to include French fries and milkshakes. This process of menu expansion continues to today, with a broad range of sandwiches, drinks, salads, and breakfast items to serve their customers. There does not appear to be any end in sight to the menu items! This expansion is an example of:
A) product development.
B) market penetration.
C) diversification.
D) market development.

Question

Quizplus · Accepted Answer

Product development involves introducing new products or improving existing products to meet customer needs more effectively. McDonald's expansion of its menu to include a wider variety of items beyond its original offerings is an example of product development, as they are enhancing and expanding their product line to appeal to a broader customer base.

McDonald's Started with a Simple Concept in 1940 - Fast