The growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve is called:
A)diversification.
B)market development.
C)market penetration.
D)intensification.
E)product development.

Question

Quizplus · Accepted Answer

Diversification involves a company entering into a new market with a new product or service, which is distinct from expanding in current markets or enhancing existing product lines.

The Growth Strategy Whereby a Firm Introduces a New Product